Taxes, charges and other costs

The cost of buying a home is much more than just the price of land and any dwelling

Costs associated with borrowing money

A loan application or establishment fee may apply. This is a one-off "administration" charge to set up the loan.
The interest rate is a consideration. It is important to remember that the longer it takes you to pay off the loan, the more interest you will pay to your lender. The interest rate may also rise during the term of your loan, which will increase your repayments to your lender. The rise in your repayments may affect your ability to keep making the payments and if so, you may lose your property as a result.
Consider taking out income protection insurance. Unlike mortgage insurance, this is a policy that you can take out to help pay your mortgage if you are unable to work due to illness, retrenchment, or death.
Valuation fees may apply when buying an established property. The lender will generally send a valuer to the place you intend to buy to ensure that the market price you’ve agreed to pay for the property is close to its value. Although you pay the one-off valuation fee, you don’t usually receive a copy of the report.
Mortgage insurance may apply when buying an established property. The lender may require you to pay mortgage insurance, particularly if you are borrowing more than about 80 per cent of the value of the property or if you are buying property outside the metropolitan area. Even though you pay for the mortgage insurance, it won’t protect you if you cannot meet your repayments. (It only protects the lender when you cannot repay the loan).
Regular loan administration fees may apply.
Changing the features of your loan during its term (such as applying for a fixed interest rate) may also attract fees.

Other one-off expenses

Government charges apply. Duty is also payable on the market value of the property. You should check with the Office of State Revenue about the time limits for lodging the contract and payment of duty.
There is the cost of expert advice when buying or building, such as settlement agents, lawyers and building consultants. It may be a good idea to employ experts to give you information to help you build or buy.
Moving costs may be incurred, including:

hiring removalists;
connection fees for utilities, like electricity, telephone and gas; and
cleaning costs associated with leaving a rental property.

Home indemnity insurance applies when you employ a builder (included in the building contract but taken out by the builder).

Ongoing fees and charges

Home maintenance costs apply, including electricity, water, gas and phone bills.
Water rates and local authority rates are payable yearly when living in the property.
Strata levies may apply, which include the cost of building insurance for strata titled properties.
Building and contents insurance should be considered.