If you’re working out the costs of buying your home, there are other charges to consider in addition to the purchase price. Some of these are listed below.
We’ve described the usual government charges below, but bear in mind that there may be additional ones. For full details about government charges, we suggest you refer to your respective state revenue office website.
Stamp duty on land transfer
When you buy property in any state or territory in Australia, you'll need to pay stamp duty to the government. The amount is based on the market value or purchase price of the property, whichever is greater. The rate of stamp duty payable is different in each state or territory.
In some circumstances, you may be eligible for an exemption or concession, so check with your solicitor or conveyancer.
Registration fees on a property purchase
Whenever a property is bought or sold, a Transfer of Land document is lodged and registered (usually by your conveyancer or solicitor) to record the change of ownership. The cost to register this title varies in each state or territory.
Registration fees on a mortgage document
In addition to the registration fee for the Transfer of Land document above, there is also a registration fee to register the mortgage document. This fee is usually paid to the applicable state or territory Land Registry on your behalf by your lender, using the funds you provided for settlement.
Title search fees
Whenever a property changes ownership or is refinanced, a search of the Certificate of Title is obtained from the Land Registry. This is to check if there are any encumbrances (things like mortgages, caveats and restrictive covenants) on the title. This search is also used to check that the details on the Certificate of Title are correct. The cost of the search varies in each state or territory and is usually paid on your behalf by your solicitor/conveyancer or lender, using the funds you provided for settlement.
Solicitor's or conveyancer's fees
Property buyers often acquire the services of a solicitor or conveyancer (who can assist in the documentation and settlement process) to help things runs smoothly and is completed correctly. Fees for solicitors and conveyancers vary, and are negotiated between the solicitor/conveyancer and the property buyer.
Loan Approval Fee
Like most other lenders, we charge a Loan Approval Fee. This cost covers the preparation of security documents (with the exception of guarantor documents), application costs and partial loan establishment costs.
Lenders Mortgage Insurance (LMI)
If you need to borrow more than 80% of the amount your property is valued at by ANZ, you may need to pay Lenders Mortgage Insurance (LMI). Banks often call this percentage the 'LVR', which stands for 'Loan to Value Ratio'.
LMI protects lenders against a loss if a borrower can no longer afford their loan repayments. This one-off fee is based on the loan amount and Loan to Value Ratio (LVR). If the property has to be sold, LMI can cover the lender if the sale price of the property does not cover the outstanding loan balance plus claimable costsdisclaimer.
As mentioned before, you'll generally need to pay LMI if your LVR is greater than 80%. But for some property types, LMI might be required if LVR is less than 80%. The fee will vary based on several factors including your loan amount and the size of your deposit.
It's important to note that LMI covers the lender, not the borrower. Also, LMI should not be mistaken for mortgage protection insurance.
There may be other fees and charges, please refer to the ANZ Personal Banking General Fees and Charges (PDF 120kB) for more details.