Most people buying their first home in Perth focus almost entirely on saving the deposit. And while your deposit is the biggest upfront hurdle, it is far from the only cost involved. Many buyers are caught off guard by the range of additional expenses that come with purchasing a property that can add up to tens of thousands of dollars on top of the purchase price.
This guide walks through the often overlooked and hidden costs of buying a home in Australia, with specific detail on what Perth buyers need to plan for in 2026. Understanding these costs early gives you a far clearer picture of what you actually need to save before you start.
Stamp Duty: The Big One Most Buyers Underestimate
Stamp duty is a state government tax charged on property purchases, and in Western Australia it is typically one of the largest upfront costs outside of the deposit. The amount you pay depends on the purchase price of the property and whether you are eligible for any concessions.
For a property purchased at $700,000, stamp duty in WA is approximately $24,500 for a standard buyer. However, first home buyers may be eligible for significant concessions. As of March 2025, WA first home buyers purchasing a property under $500,000 pay no stamp duty at all, saving up to $18,000. A concessional rate applies for properties valued between $500,000 and $700,000.
It is worth calculating your specific stamp duty liability early in your planning. Use our Stamp Duty Calculator to get an accurate figure based on your purchase price and buyer status.
Lenders Mortgage Insurance (LMI)
If you are borrowing more than 80% of the property’s value meaning your deposit is less than 20% most lenders will require you to pay Lenders Mortgage Insurance. LMI protects the lender, not you, in the event that you default on the loan. Despite being for the lender’s benefit, the cost is passed on to the borrower.
LMI costs vary depending on the lender, the loan amount, and your LVR, but it is common for LMI to cost anywhere from $8,000 to $25,000 or more on a typical Perth purchase. This can be paid upfront or added to the loan, though adding it to the loan means you pay interest on it over time.
Some buyers can avoid LMI entirely through schemes like Keystart or the federal Home Guarantee Scheme. Explore low deposit home loan options to see whether you might qualify.
Conveyancing and Legal Fees
Every property purchase in Australia requires a conveyancer or solicitor to handle the legal transfer of the property from the seller to you. In Perth, conveyancing fees typically range from $1,500 to $2,500 depending on the complexity of the transaction and the professional you engage.
These fees cover title searches, preparing and lodging settlement documents, liaising with the seller’s legal representative, and ensuring the transfer of ownership is legally sound. While it may be tempting to choose the cheapest option, this is one area where experience and thoroughness genuinely matter.
Building and Pest Inspections
Before exchanging contracts on an established property, it is strongly advisable to commission a building inspection and a pest inspection. A building inspection assesses the structural condition of the property and identifies any defects, while a pest inspection checks for termites and other infestations.
In Perth, a combined building and pest inspection typically costs between $400 and $700. While this feels like an added expense, it can save you from purchasing a property with serious structural or pest issues that could cost far more to repair. If the inspection reveals significant problems, you may also be in a stronger negotiating position on the price.
Settlement Fees and Government Charges
In addition to stamp duty, there are a number of smaller government fees and charges payable at settlement. These include the land title transfer fee, mortgage registration fee, and any lodgement fees. In WA, these fees are relatively modest but still need to be accounted for. Collectively, they typically add between $500 and $1,500 to your settlement costs depending on the purchase price.
Loan Application and Establishment Fees
Some lenders charge application, establishment, or valuation fees when you take out a home loan. These fees can range from a few hundred dollars to over $1,000 depending on the lender and loan product. Not all lenders charge these fees, and a mortgage broker can help you identify loan options that minimise or eliminate upfront loan costs.
Moving Costs
It is easy to overlook moving costs when you are focused on the big financial numbers, but they add up quickly. Hiring a professional removalist in Perth typically costs between $800 and $2,500 depending on the size of your home and the distance of the move. If you are purchasing a property that needs work before you can move in, you may also need to factor in temporary accommodation costs.
Immediate Repairs and Renovations
Even if your building inspection comes back with a clean bill of health, most homes have a list of small fixes or updates that new owners want to make soon after moving in. Paint, flooring, appliances, garden work, curtains, and general maintenance can add thousands of dollars to your first-year costs in a new home. It is wise to hold a cash reserve for these expenses rather than committing every available dollar to the deposit and purchase costs.
Ongoing Costs to Plan For
Beyond the upfront costs, new homeowners also need to plan for ongoing expenses that renters do not face. Council rates in Perth typically range from $1,200 to $2,500 per year depending on the property and local government area. Water rates add a further $1,000 to $1,500 annually. Home and contents insurance should be budgeted at $1,500 to $3,000 per year. Strata fees apply if you purchase an apartment or townhouse and can range from a few hundred to several thousand dollars per year.
How Much Should You Budget for Hidden Costs?
As a general rule, Perth buyers should budget for an additional 4% to 6% of the purchase price on top of their deposit to cover the full range of upfront costs. On a $700,000 purchase, that means setting aside approximately $28,000 to $42,000 for costs outside of the deposit itself.
Speaking with a mortgage broker before you start seriously looking at properties is the best way to get a clear and personalised cost breakdown for your situation. Contact our team at Central Lending Solutions for a free consultation and a realistic picture of what you need to have saved before you buy.
Frequently Asked Questions
Can I include upfront costs in my home loan?
In most cases, upfront purchase costs such as stamp duty and conveyancing fees need to be paid from your own savings and cannot be added to the home loan. Some lenders do allow certain fees, such as LMI, to be capitalised into the loan. A broker can clarify what your specific lender will and will not allow.
Do first home buyers in WA get help with stamp duty?
Yes. WA first home buyers purchasing a property under $500,000 pay no stamp duty under the current concession scheme, which can save up to $18,000. A concessional rate applies for properties valued between $500,000 and $700,000. These concessions apply to both established homes and new builds.
Is a building inspection mandatory in WA?
A building inspection is not legally required in Western Australia, but it is very strongly recommended. Purchasing a property without one means accepting the risk of undisclosed structural issues or pest damage, which can result in costly repairs after settlement.
What is the difference between a conveyancer and a solicitor for property purchases?
A conveyancer specialises specifically in property transfers and is the most common choice for straightforward residential purchases in Perth. A solicitor can also handle conveyancing but may be more appropriate for complex transactions involving trusts, self-managed super funds, or commercial elements. Both are qualified to manage a standard residential settlement.
How can I reduce the hidden costs of buying a home?
The most effective strategies include qualifying for first home buyer stamp duty concessions, using a government scheme to avoid LMI, comparing lenders to find low-fee loan products, and getting multiple quotes for conveyancing and building inspections. Working with a mortgage broker ensures you are comparing loan options across multiple lenders and identifying the most cost-effective path for your situation.
Want a Clear Picture of Your Full Buying Costs?
Our team at Central Lending Solutions helps Perth buyers understand the complete cost of purchasing a home, not just the deposit. We compare lenders, identify grants and schemes you may qualify for, and guide you through every step at no cost to you. Book a free consultation today.