For many people purchasing a house or investment property, the deposit is the main cost that is thought about. But when buying a house there are a number of add-on costs you need to consider. In addition to a deposit, you will pay stamp duty and mortgage duty based on the value of the property and the state you live in. Click here for stamp duty rates and mortgage duty rates.  You will also need to factor in the cost of legal fees and various property inspections (e.g. building, pest, strata, land/property survey) which may be in the total order of $2,000 to $3,500 (costs will vary depending on your individual circumstances).

Another cost you may incur when buying a house is Lenders Mortgage Insurance. This is insurance your mortgage lender may require you to take out to cover them in the event that you (the borrower) default on the home loan and the property is sold for less than the outstanding amount on the home loan. Most mortgage lenders will require this insurance if you are borrowing 80 percent or more of the valuation of the property (for Lo Doc loans insurance may be required for home loans of 60% or more). It is important to remember that Lenders Mortgage Insurance protects the lender, not you, in the event of your default.