What are the costs of owning a home in Australia?

When most people talk about the costs of buying a home in Australia, they focus on property prices and mortgage repayments. While those are major expenses, you can’t overlook that homeownership costs more than just your home loan.

There’s a range of different costs you’ll have to cover, both during and after you purchase your home, which can be categorised as the upfront and ongoing costs of homeownership. 

House deposit

Your house deposit will be one of the main upfront costs and may even be one of the largest single costs you pay on your home. For instance, the average deposit size in Australia is $191,860, based on the March Quarter 2024 ABS Lending Indicators.

Of course, the amount of deposit you need for a house will depend on whether your lender requires a 20% deposit, the price of the property you’re interested in buying, and whether you take advantage of government grants and schemes. 

Stamp duty

Stamp duty, also called transfer duty, is a one-off government tax on the transfer of property between owners. The cost of stamp duty varies by state and territory and can depend on the value or sale price of the home you’re buying. 

For example, in NSW a $600,000 property would attract approximately $21,700 in stamp duty. However, a similarly-priced property in Qld would only attract around $12,850 in stamp duty.

You can use a stamp duty calculator to estimate the cost of stamp duty when you live.

Mortgage registration

When you buy a home with a mortgage, you’re required by the government to formally register it. Mortgage registration costs between $120 to $225, depending on your state of residence. 

Home loan fees

You will also have to take care of any upfront fees charged by your lender. These can include application fees, legal fees, valuation fees, and settlement fees. You may also need to pay a fee for extra features, like offset accounts, on some home loans. 

The average application fee in the Mozo database is about $172. However, of the lenders Mozo tracks application fees cost between $0 to $990. So, there are some significant price variations across the market. 

Legal and conveyancing fees 

It’s a good idea to hire a licensed conveyancer to review your contract, settlement documents, and title paperwork when buying a property. While it can be expensive (anywhere between $700 to $2,500, depending on the complexity), it could cost less than making a mistake on these crucial documents.

Mortgage repayments

One of the most obvious ongoing costs of owning a home will be your mortgage repayments. The average home loan in Australia is $636,597. That means, on the average variable home loan rate of 6.80% p.a.†, the average monthly cost of a mortgage is $4,418. This works out to be $53,016 per year. 

Council fees

The amount you pay in council fees depends on your property’s location. Councils charge rates at a certain percentage of your property's value, so the more expensive the property, the higher the council rate. 

In South Australia, for example, the average council rate is around $39 per week, according to Local Councils SA . This works out to be around $1,872 per year, assuming your council rates don’t rise.

To find out what the council rates are in your LGA, check your local council website. 

Home insurance 

Many Australian lenders require you to have home insurance before approving your home loan. 

Your insurance premium depends on multiple factors, like the location, size, and cost of your property, and the area’s susceptibility to natural disasters like flooding and fires. 

According to a Mozo survey of over 2,000 Australians, the average cost of a home insurance policy is around $121 per month or $1,460 per year. 

Utilities (energy, water and internet)

Note: The best available data for the following average utility costs is from late 2023. In August 2024, at the time of updating, these estimates will look a little different. According to the June Quarter 2024 Consumer Price Index , energy bills have increased 6% in the past 12 months. However, the government’s energy bill rebates may help soften the impact of price rises. 

Utilities are another ongoing cost of owning a home in Australia and include energy (electricity and gas), water, and a broadband connection.

Electricity

According to Mozo's research for the 2023 Cost of Energy Report, the average yearly cost of a low-usage electricity bill (10kWh/day) is around $1,500. For medium-usage households (20kWh/day), the market average is around $2,615 per year.   

Gas

Mozo’s 2023 Cost of Energy Report also found that the average yearly cost of gas for medium-usage households (80MJ/day) works out to be approximately $1,420.

Water

While you wouldn’t have paid for a water bill while renting, it’s expected that you’ll pay for your water supply once you own your own home. The cost of water involves a daily supply charge and usage charges. 

As a rough guide, water bills typically come to about $200 to $250 each quarter, or approximately $800 to $1,000 per year, depending on how much you use and the rates you’re charged in your part of the country. 

Home internet 

If you require a broadband connection in your home to run Wi-Fi, then this is another ongoing cost of homeownership you’ll need to factor in. According to Mozo’s latest Broadband and Mobile Report, the average cost for an NBN Standard plan (NBN 50) in 2024 is $80 per month, or $960 a year.

Maintenance

It’s a good idea to set aside spare cash for maintenance and repair work if you need it. General maintenance costs can be anywhere from 1% to 4% of your home value per year, according to Airtasker . 

On the average-priced Australian property of $959,300, according to the Australian Bureau of Statistics (ABS), maintenance costs could be about $9,600 per year on the low end. 

More involved repairs, like fixing a roof, will naturally cost a lot more, so it’s good to have an emergency maintenance fund set aside.

The sorts of maintenance costs you might need to cover on a regular basis can include: 

• Cleaning vents and gutters 
• Pest control 
• Mould treatment
• Lawn and garden maintenance
• Pool cleaning.

Strata fees

If you’re buying an apartment with a strata scheme, then strata fees will be an extra ongoing cost that you’ll need to pay. According to property investment blog, Property Update , strata fees are between 0.3% and 1.2% of a property’s value on average. This means you could pay anywhere from $2,200 to $10,000 per year in strata levies, which are often paid quarterly.

Note: The following example is for illustrative purposes only. Homeownership costs can vary based on a range of factors, including your place of residence, property type, loan size and personal circumstances. 

Adding up all of the figures mentioned above, the average monthly cost of owning a home in Australia comes to an estimated $6,070 per month. Here’s a breakdown of each ongoing expense used in this example: 

Estimated monthly homeowners' expenses 

†Average variable home loan rate in the Mozo database for an owner-occupier, making principal and interest repayments on a $400,000 loan over 25 years, with <80% LVR. 

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