The real cost of owning a home

Along with your deposit, there are a range of other potential upfront costs to be aware of when buying a home. A few may include:

LMI is insurance a lender takes out to protect itself against the risk of a buyer not being able to meet the required loan repayments. This can apply if you’re borrowing more than 80% of your home’s purchase price from a lender.

Stamp duty is a land transfer tax levied by state/territory governments on certain purchases, like buying land or property. It’s a one-off fee paid upon settlement, and how much it costs will depend on where you live and the property’s value.

Once you’ve purchased the property (yay!) you’ll start life as a homeowner, which unfortunately, doesn’t come free (boo!).

Electricity, internet, gas and water bills are additional expenses you’ll need to pay for as an owner-occupier. What you pay for these services will typically depend on the provider you connect with, how many people are living in the home, and whether you’re eligible for any concessions.

Council rates help pay for things like community services, projects and infrastructure, such as road maintenance, bin collections, libraries and parks. Rates are usually paid in quarterly instalments or annually, and what you pay will depend on where you live.

If you live in a shared development, like an apartment, unit or townhouse, you may need to pay regular fees to support operation, repairs and maintenance of common property (for example, a shared lift, pool or gym).

What you spend on maintenance and repairs can depend on a myriad of factors, including:

• whether you've purchased a newly built home
• the age and condition of an older home
• whether you’re in an apartment or freestanding home.

Planning for these costs can be tricky, as some things you may be aware of based on a building/pest inspection prior to buying your home, while others may be discovered as you settle in. Cue Forrest Gump’s iconic line: “My momma always said, ‘Life was like a box of chocolates, you never know what you’re gonna get’.” Same goes for owning a home. Sometimes, little things pop up out of the blue that need attending to.

Repairs can involve all sorts of things; repointing a roof after finding a leak, fixing a dilapidated fence, patching up damaged plaster, retiling a pool, or even mould removal from water damage in a bathroom.

Maintenance is more about keeping things in good shape; for example, polishing hard-wood floors, cleaning gutters or arranging professional servicing for your air-conditioner or heating unit.

Updates are usually cosmetic, like a fresh lick of paint or installing a new wardrobe system. They’re not necessarily needed but they go a long way toward making your space feel fresh and/or functional.

1. Australian Bureau of Statistics. (2019–20). Housing Mobility and Conditions. ABS. www.abs.gov.au/statistics/people/housing/housing-mobility-and-conditions/2019-20.

Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL and Australian Credit Licence 237879) (“Bendigo Bank”) is the credit provider. Credit services are provided by Tiimely Pty Ltd (ABN 41 605 696 544 and Australian Credit Licence 496431) (“Tiimely”). Insurance Australia Limited trading as NRMA Insurance (ABN 11 000 016 722) (“IAL”) is a member of AFCA and does not hold an Australian Credit Licence. IAL may receive a commission from Bendigo and pay a commission to Tiimely if your loan application is approved.