The hidden costs of buying a home

Buying a house isn’t just about paying what’s on the property’s price tag. There are some extra costs all buyers should be aware of that go beyond just paying the deposit. So ensure you take an ‘eyes wide open’ approach.

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It’s wise to know that the deposit you’ve saved is just part of the cost of buying and that it’s essential that you put money aside cash to pay for all the costs that crop up.

So what costs are involved in buying a home?

  • Legal fees
  • Building reports
  • LIM (Land Information Memorandum) reports
  • Valuations
  • Loan application fees
  • Insurance
  • and much more.

It would be pretty tragic to save up for years and finally buy a house only to find the additional costs are crippling, or worse, impact on keeping your new house.

Some lenders will cover some of the above costs as part of your loan agreement, but you also need to think about the costs of moving across town, to another city/town, or to the other end of the country. Plus ongoing costs such as insurance and rates.

As you can see, there are more costs involved than meets the eye. Make sure you factor these into your budget, even before searching for that dream home.