So, to help locals get a better idea of the costs involved when purchasing property, I have created the following list for first-home buyers to include in their pre-purchase budget.

■ Loan application fees - Also known as a loan establishment fee, this is payable when you first take out a home loan. Be sure to look into a variety of loan options and to study the fees that apply to each.

■ Government fees - A number of government fees will apply, including land transfer registration fees and government taxes. These fees are a mixture of flat fees and variable charges that change with the price of the property.

■ Stamp duty - Stamp duty rates vary from state to state and these can add a very significant cost to the property you are buying. First-home buyers may be eligible for stamp duty concessions in some states, so do your research.

■ Mortgage insurance - Lender's mortgage insurance, or LMI as it is more commonly known, protects the lender if the borrower defaults on the loan and the home is sold for less than the lender is owed. LMI is required to be paid when you borrow more than 80 per cent of the property's value. The price of this varies depending on the value and type of loan you have selected.

■ Insurance - As a condition of loan settlement, lenders will impose a condition that all security properties are covered under a building insurance policy. Don't forget home and contents insurance and mortgage protection insurance too.

■ Conveyancing or solicitor fees - This refers to the fee charged by the conveyancer or solicitor that homebuyers engage to conduct the legal work involved in buying real estate.

■ Building and pest inspection fees - The inspections ensure that the property is not adversely affected by any insect infestations (usually termites), and that the dwelling is structurally sound and complies with building regulations. Keep in mind that some lenders will make these inspections mandatory.

■ Moving costs - Another important set of costs to consider are moving expenses, especially if you are moving a long distance. It's worth shopping around.

Richard Windeyer is a mortgage broker with Mortgage Choice. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Phone Richard Windeyer on 1800 01 LOAN.