A guide to the real costs of owning a home in Australia in 2025

Buying a home in Australia is rarely as simple as saving for a deposit and securing a mortgage. Mozo’s Home Loan Report 2025 found one in four Australians worry about affording mortgage repayments – but that’s just one of the costs they need to manage. The reality is that hidden and ongoing costs often catch buyers off guard.

This guide is designed to give you a clear, up-to-date picture of what it really costs to buy and own a home. It’s not just a list of expenses – it’s a practical resource to help you make smarter money moves, plan your budget, and avoid the financial traps that catch many first-time buyers off guard.

As of September 2025, the median house price across Australia is $848,858, according to Cotality’s Home Value Index. For combined capital cities, the median value rises to $932,038. These figures underline just how significant a financial commitment buying a home can be. 

Conversely, the Australian Bureau of Statistics (ABS) reports that inflation in the June quarter 2025 was just 2.1% – at the extreme low end of the RBA’s target band and the lowest annual inflation rate since the March 2021 quarter. On the surface, this might suggest some relief for borrowers.

But look closer, and the picture is more nuanced. 

Costs that hit homeowners directly, like insurance and other housing-related services, are still creeping up. That means even if your mortgage repayments are steady or declining, the other costs of owning a home could still be climbing.

These are the immediate, one-time expenses you'll need to budget for before you even get the keys.

The deposit: the traditional barrier

The deposit remains the single largest financial barrier for most buyers. A 20% deposit is the traditional benchmark, which on the national average house price would be approximately $169,772.

However, many buyers are now entering the market with deposits as low as 5%. To help with a low deposit, Mozo's experts have recognised several lenders with the lowest-cost variable rate loans for first home buyers in the 2025 Mozo Experts Choice Awards.

Government taxes and fees

• Stamp duty (transfer duty). This is typically the largest cost after the deposit, but it varies by state and whether you are a first home buyer. Many states offer concessions or full exemptions. For example, in New South Wales, first home buyers purchasing a new or existing home valued at up to $800,000 can receive a full exemption, while those buying a property valued up to $1 million may qualify for a concessional rate. Calculate your stamp duty using our calculator.
• Mortgage registration and transfer fees. These are mandatory fees to register the mortgage and transfer the property title with the relevant state or territory land titles office.

Lenders mortgage insurance (LMI) is a common expense for buyers with a deposit of less than 20% of the property's value. This insurance protects the lender, not you, in case you default on your home loan. 

Analysis from realestate.com.au shows the average LMI cost for first home buyers in 2025 is $25,000, with some paying as much as $42,000. 

However, from October 2025, the Federal Government's expanded First Home Guarantee scheme will allow all eligible first home buyers to purchase a home with a deposit as low as 5%, without having to pay for LMI. 

This program is designed to remove a major financial barrier for buyers, but some argue it will increase competition and potentially lead to a rise in house prices over the short term.

Legal and professional fees

• Conveyancing. A legal expert is required to handle the contract review and property settlement. The cost for this service can range from around $800 to $2,500.  
• Building and pest inspections. These are vital to uncover costly structural problems or pest infestations. A combined building and pest inspection for a typical suburban home is estimated to cost between $450 and $900. This is a crucial investment, as the latest ABS research shows that 11% of Australian households reported major structural problems in their dwellings in 2019-20. 

Moving and other initial costs

The costs associated with moving into your new home are often underestimated. Best Rated Transport’s moving costs guide 2025 suggests a local move can cost anywhere from $300 to $3,500, while an interstate move can range from $2,600 to $5,850, with some reaching up to $10,000. You will also need to budget for the connection of essential utilities such as electricity, gas, and water.

Once you've purchased your home, a new set of recurring costs must be managed to avoid financial stress.

Loan repayments: the most obvious cost

Your mortgage repayments are usually the largest ongoing expense of owning a home, directly shaping your monthly budget. Depending on your needs, there are different types of loans to consider – from low-cost home loans and fixed rate home loans to offset accounts, packaged loans, and options tailored for first home buyers, investors, or environmentally conscious buyers. Mozo's Experts Choice Awards for home loans in 2025 recognise lenders offering standout options in these categories. 

Property taxes and levies

• Council rates. A tax paid to the local council to fund community services such as rubbish collection, libraries, parks, and local infrastructure. The amount is based on the property’s land value and location. For houses, rates can range between $1,500 and $3,000 per year in metropolitan areas. Apartment owners also pay council rates, though generally at a lower amount than freestanding houses since the land value is shared across the building. Rates are typically billed quarterly. 
• Strata fees. If you're buying an apartment, unit, or townhouse, you will need to pay strata fees to cover the maintenance of shared property and amenities. These fees are highly dependent on the number and type of facilities in the building. Buyer’s Domain 2025 industry analysis estimates strata fees for a duplex or townhouse can range from $400 to $1,000 per quarter, while a unit or apartment can be from $600 to $2,500 per quarter in Sydney. 
• Land tax. A state government tax applied annually on land you own that is not your primary residence. The amount payable depends on the land’s value and the state or territory thresholds. For investors or those owning multiple properties, land tax can become a significant ongoing cost.

Insurance and property maintenance

• Home insurance. Mozo’s latest research report found Australians pay an average of $3,499 per year for home and contents insurance, representing a 9% increase over the 12 months to November 2024. The report also provides a breakdown of premiums by state, noting that Queensland’s average is $4,398, and the Northern Territory average is $4,547, which are the highest due to elevated natural disaster risks.
• Maintenance and repairs. This is an oft overlooked cost that can catch many buyers off guard. A good rule of thumb is to budget at least 1% of the property's value annually for general property upkeep and any unanticipated repairs.

The tables below provide a clear summary of estimated upfront and ongoing costs based on an example property valued at $800,000.

Upfront costs

Ongoing annual costs

~ Indicates the figure is an approximation or estimate rather than a precise or fixed amount.

Buying your first home comes with more than just the mortgage – from council rates to insurance and ongoing upkeep, the hidden costs can quickly add up. Understanding these expenses upfront can help you budget more effectively and avoid surprises down the track. 

If you’re preparing to take your first step onto the property ladder, now’s the time to compare your options, explore government schemes, and make sure you’re financially ready to secure the keys to your new home.