In our last blog we explored the important considerations behind buying a home.  Location, budget, borrowing limits and property features being some of them.  This week it’s all about the costs! Knowing the range of costs will help you work out a suitable budget which in turn will influence the deposit needed and the size of any loan.  After all it’s important to ensure you aren’t left short at the time of settlement. 

The costs relating to property transactions varies across Australia, so with that in mind we’re going to explore the most common costs (not all) associated with buying a home in Queensland.

  1. Transfer Duty – (Also commonly known as Stamp Duty) It’s charged by the Qld government on all property purchases and calculated as a percentage of the purchase price. Concessions exist for 1st home buyers and people buying a principal residence provided you meet the criteria.  Check out the website for more details:
  2. Titles fees – In terms of buying a home, these Qld government fees relate to registering the change of ownership and any mortgage against the title of the property. Concessions may apply depending on eligibility.  See
  3. Conveyancing – Relates to the professional fees charged by law firms to manage the purchase/sale transaction from start to finish. McAdam & Turnbull recommends speaking to a lawyer before signing a contract.  Many lawyers offer pre contract review services at no additional cost.  Their job is to engage with the other party plus any banks, brokers, accountants, real estate agents etc on your behalf to ensure a smooth settlement. 
  4. Accountant – There may be some tax implications when buying/selling commercial or residential investment property. McAdam & Turnbull recommend speaking to an accountant BEFORE signing a contract.
  5. Pest and Building Inspection Reports – Two of the most common checks undertaken by home buyers, they’re designed to ensure the property is structurally sound with no pest infestations or other damage. There may also be other searches your lawyer will recommend (at additional cost).
  6. Finance related costs – Banks often advertise finance options with minimal deposits, often 5 or 10%. However, it’s often not the total picture, and you will usually see the words ‘plus fees and charges’ in small type.  These costs include:
    • Bank application fees.
    • Bank legal and settlement fees. (Often incorporated into the application fee.)
    • Valuation fees. (Lenders obtain a formal valuation to confirm the homes value.)
    • Lenders Mortgage Insurance (LMI) – Paid by the borrower but protecting the bank in the event of a loan default, LMI applies where a loan is greater than 80% of the purchase price. Some some cases the lenders will add LMI to the loan.
    • General insurance – Most lenders insist you take out home insurance as a loan condition.

Whilst our list isn’t exhaustive we’re simply highlighting that several thousand dollars may be needed to cover these purchase costs. 

The process of buying property can be complex and every person’s situation is different.  The team at McAdam & Turnbull Realty led by co-owner and principal sales agent Lachlan Evans are focused on tailoring real estate solutions to meet your needs and keep the experience as stress free as possible.  We’ll work in partnership with you, your lawyer and other professionals to ensure a smooth transaction. 

McAdam & Turnbull Realty are your local real estate professionals and property management specialists in Toowoomba and nearby surrounds.  You can follow our Principal and agent Lachlan Evans at or view our current rental and sale listings at and LIKE us on Facebook @  

This publication covers real estate, property market, finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as professional finance or legal advice. McAdam & Turnbull Realty recommends that professional legal and/or finance advice should be obtained before taking any action on the basis of the general information presented in this publication.

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