Buying guide · 3 min read · Checked 21 October 2026

The Hidden Costs of Buying Property in Victoria

In short

Stamp duty is the big one. On an $800,000 established home bought without first home buyer relief, duty is $43,070, and with registration fees, conveyancing and a building inspection the upfront costs come to about $47,000 to $48,500 before loan costs, insurance and moving. First home buyers pay no duty up to $600,000, which cuts that to a few thousand dollars.

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A worked example

Here is what buying an $800,000 established home in Melbourne costs on top of the price, for a buyer who does not get first home buyer relief.

Buying an $800,000 home
Stamp duty (land transfer duty)	$43,070
Transfer registration fee	$1,976
Mortgage registration fee	$129
Conveyancing, searches and certificates	About $1,100 to $2,150
Building and pest inspection	About $450 to $950
Typical total	About $47,000 to $48,500, plus loan costs, insurance and moving

Stamp duty

Victorian duty is worked out on the price or market value, whichever is higher. Between $130,000 and $960,000 it is $2,870 plus 6% of the amount over $130,000. Between $960,000 and $2 million it is 5.5% of the whole value, so a $1.2 million home attracts $66,000.

First home buyers pay no duty up to $600,000 and reduced duty up to $750,000. A smaller home-buyer concession applies only up to $550,000. Foreign purchasers pay an extra 8%. The temporary off-the-plan concession can reduce duty on eligible apartments, units and townhouses for contracts signed before 21 April 2027.

Registration fees

Land Services Victoria (formerly Land Use Victoria) charges to register the transfer and your mortgage. From 1 July 2026 the electronic transfer fee is $104.30 plus $2.34 for every whole $1,000 of the price, capped at $3,614, and the mortgage fee is $129.20.

Legal and inspection costs

Conveyancing for a purchase commonly costs about $880 to $1,650, plus $200 to $500 for searches and certificates.
A building and pest inspection in Melbourne typically costs about $450 to $950. Do it before you sign or bid.
For apartments and townhouses, budget for an owners corporation records search if your conveyancer recommends one.

Loan costs

Application, valuation and settlement fees vary by lender, and some charge none. Ask for every fee in writing.
Lenders mortgage insurance usually applies if your deposit is under 20%, unless you use the 5% Deposit Scheme. It can run to thousands of dollars, so get a quote early.

Settlement adjustments

Council rates, water charges and owners corporation fees are shared from the settlement date, so you may reimburse the seller for charges they have paid ahead. For contracts since 1 January 2024, sellers generally cannot pass land tax on to you, unless the property is worth more than $10.7 million.

Easy to forget

Building insurance from settlement, or earlier if your lender asks.
Removalists, utility connections and any immediate repairs or furniture.
Ongoing costs: council rates, water, owners corporation fees, insurance and maintenance, plus land tax if it is an investment.

Questions

What people ask us

How much is stamp duty on an $800,000 home in Victoria?

$43,070 at general rates. First home buyers get a reduced amount up to $750,000 and pay nothing up to $600,000.

When do I pay stamp duty?

Usually at settlement, through your conveyancer.

Can I add the costs to my loan?

Lenders usually expect you to pay stamp duty and fees from savings, although some will lend more depending on your deposit and income. Ask your broker early.

Do I have to pay the seller’s land tax?

Generally not. For contracts since 1 January 2024, sellers cannot pass land tax on to buyers through adjustments, unless the property is worth more than $10.7 million.

Sources

Written by Luke Fornieri, licensed estate agent, Fornieri & Azar, East and South East Melbourne. Checked 21 October 2026. General information only, not legal, tax or financial advice. Grants, duty and rules change, so check the sources or ask us about your situation.