6 ongoing costs associated with owning a home

Whether you’re a first home buyer, or a seasoned property owner, buying a home is one of the biggest purchases you’ll make. Owning a home comes with a range of ongoing costs that you’ll need to budget for – here's six to consider.  

Mortgage repayments

If you have a mortgage on your home, you'll need to make regular mortgage payments. The frequency and cost of your repayments will depend on:

• Your loan type – fixed or variable
• Your interest rate
• Repayment frequency - weekly, fortnightly, or monthly ​

Ongoing home loan fees

Most lenders will include account-keeping fees on your home loan – these can be monthly or annual charges, and are in addition to your mortgage repayments. At Unloan, we believe home loans should be easy to get, and easier to live with – that's why there’s no Unloan fees!

Council rates

Homeowners are required to pay council rates to fund local civic services and infrastructure, such as roads, parks, and public services. Rates are typically based on the property's value and location and vary between councils.

Home and contents insurance

You are required to have insurance coverage for your home and its contents. Lenders may require evidence of insurance before finalising your property purchase.  

Utilities

Unlike renters, homeowners are responsible for all utility costs. Actual costs can vary depending on your usage but can add up quickly. Some Utilities include:

• Water
• Electricity
• Gas
• Internet

Strata fees

If you own a unit or apartment in a larger building, you may have to pay strata fees. These fees cover the maintenance of common areas, utilities, and structural repairs within the building. Learn more about strata fees here.

It’s important to take these costs into consideration when researching the market and looking to purchase a home. Learn more about upfront costs to consider before buying a home here.

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.