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If you’ve spent Saturdays going from a townhouse in Coburg to an apartment in Southbank, you already know the big numbers. Deposit, loan repayments, stamp duty, building inspection. You brace yourself for auction nerves and the paperwork.
Then the quieter costs start drifting in. A certificate here. A bank charge there. A settlement adjustment that is not a ‘fee’ but still needs cash. None of it is shocking on its own, but it often arrives when your savings are at their thinnest.
Most ‘hidden’ costs are not secret. They’re just spread across different people, different invoices, and different dates. If you only budget for the headline items, you can feel squeezed right when you’re trying to keep the deal together.
Here’s a Melbourne focused run through of the costs first home buyers miss most often, and what to do so they don’t catch you off guard.
Costs that land before you even buy
Reports you may pay more than once
Building and pest checks are a common example. If you miss out at auction or get pipped at the last minute after a private sale offer, you can end up paying for more than one report while you search for the right place.
For apartments and some townhouses, owners corporation material is another one. You want to know the fees, any special levies, building insurance, and whether major works are on the horizon. The paperwork takes time to gather and review, and buyers often underestimate the cost of getting a clear picture.
Finance related charges
Your lender may charge for valuations, loan set up, lender legal work, mortgage insurance, or settlement processing. These are easy to miss because they sit in bank documents, not the contract of sale.
Auction day practicalities
If you buy at auction in Victoria, you are usually signing on the spot and paying a deposit straight away. That can mean arranging a bank cheque, confirming transfer limits on your mobile banking, and being ready for the deposit amount set by the contract.
If you want a broader, step by step view of the whole journey, our first home buyers guide is a helpful companion while you’re doing the Saturday inspection circuit.
Conveyancing fees and disbursements: the split that confuses almost everyone
When people say ‘my conveyancer costs $X’, they often mean the professional fee. That fee covers the legal work and guidance: reviewing the contract and Section 32, advising on conditions, managing deadlines, preparing settlement, and liaising with the other side, your lender, and the agent.
Then there are conveyancing disbursements. These are payments to third parties for the searches, certificates, and registrations needed to check the property and complete the transfer. Your conveyancer organises them because they’re part of the process, but the charges come from councils, water authorities, and land registry systems.
In Victoria, you should receive written cost disclosure when you engage a conveyancer or lawyer, including an estimate of likely disbursements and how costs will be billed. If the estimate changes because extra searches are needed, you should be told as soon as possible. If a quote says ‘plus disbursements’ with no guidance, ask for an itemised estimate before you commit.
For a fuller explanation of how the numbers fit together, see our guide to understanding conveyancing costs.
What disbursements usually cover in a Melbourne purchase
Disbursements vary based on the property and what turns up in the paperwork, yet most Victorian purchases involve some mix of:
Title and land registry searches to confirm ownership and check for recorded interests like mortgages, caveats, and easements.
Council and planning information, which can matter a lot in inner suburbs where overlays and tighter controls are common.
Water authority information, which also supports the settlement adjustment process.
Owners corporation certificates and supporting documents for apartments and some townhouses.
Electronic settlement and lodgement charges, because most settlements run through an electronic platform.
The goal is not to memorise each certificate. It’s to expect that essential checks cost money, and to make sure you know which checks are likely for the property you’re buying.
When disbursements can rise
A straightforward house on a single title in a middle suburb often needs fewer moving parts than an apartment, a subdivided block, or an older inner suburb home with tighter planning controls. Costs can rise when extra checks are sensible, or when the timetable is tight.
Common triggers we see in practice include:
Apartment and townhouse purchases, where owners corporation paperwork adds steps and documents.
Newer developments, where you may want extra detail about shared services, common property, or building information.
Properties with unusual title features, such as easements, shared driveways, or restrictions that need closer reading.
Land in areas with a history of industrial use, where buyers want comfort about what has happened on the land over time.
Short settlement periods, where searches and certificates need to be ordered and returned quickly.
You don’t need to be an expert in each search. You just want your conveyancer to tell you, in plain language, which checks are likely for the property you’re buying and what that means for the disbursement estimate.
Government charges that still need a spot in your budget
Two government related items often blur together for buyers: duty payable in Victoria and the land registry fees to register the transfer, plus any mortgage registration fees.
Duty tends to get the attention, yet registry charges can still catch people because they land as part of settlement rather than as a neat invoice. If you want a clear breakdown, our article on transfer duty and registry fees explains the common charges buyers see.
A practical tip: treat duty, registry charges, and disbursements as part of your ‘cash to settle’. They’re usually not covered by the loan unless you have specifically arranged it, and even then you may still need funds available at short notice.
Settlement adjustments: the bill that is not really a bill
The statement of adjustments often looks like a list of extra fees. In most cases, it’s a split of ongoing property costs between the seller and you.
If the seller has paid council rates or water charges for a period that goes beyond settlement day, you reimburse them for the part that falls after settlement. The same can apply to owners corporation fees. If the seller hasn’t paid an account yet, it can work the other way and the seller reimburses you, depending on the dates.
This is normal. It is also why two buyers can settle on the same day with different cash requirements. It depends on what the seller has already paid and where the billing periods fall.
The lender side: costs buried in bank paperwork
Your lender can add fees that are outside your conveyancer’s control. Common examples include loan application or settlement fees, valuation costs, lender legal fees, and mortgage insurance if you are borrowing a higher proportion of the price.
Ask your broker or lender for a written list of all loan related charges early, then keep a buffer for anything that may be triggered by a valuation update or a loan product change.
Melbourne traps that lead to higher costs
Apartments with looming works
In the CBD fringe and inner city towers, planned works, cladding discussions, lift upgrades, or major maintenance can lead to special levies. The cost you miss is not only the paperwork itself. It’s the levy that can change your monthly budget after you move in.
Rushed timelines
Short settlements and auction purchases compress the timeline. That can mean urgent search requests, quicker document turnarounds, and less time to chase missing information. You don’t want to skip checks because you’re rushing, and you don’t want to pay extra because no one flagged the timeline early.
Renovation plans that meet a planning control
Melbourne’s older suburbs are full of charming homes, yet planning controls can shape what you can do with extensions, second storeys, and even fencing. Paying for the search is one thing. Buying a home with a renovation plan that later turns out to be limited is the bigger sting.
How to read a conveyancing quote without getting stung
If you’re comparing quotes, try this quick test.
If the quote lists a fixed professional fee, then says ‘plus disbursements’ with no estimate, you still don’t know the real number. You’re also not comparing like for like, because another firm may have built an estimate of disbursements into the figure you’re looking at.
A clearer quote will usually show:
The professional fee.
A list of expected disbursements with estimates.
GST treatment, and whether it applies to the fee only or also to certain disbursements.
When money is payable (for example, whether any searches are paid before settlement).
If you only take one action from this article, let it be this: ask for the estimate in writing before you sign the engagement, so you can budget with confidence.
A simple budgeting plan that reduces stress
When you budget, split your costs into three buckets:
Before you buy: reports, owners corporation material, finance set up costs, and contract review work.
Cash to settle: deposit balance, duty, registry charges, disbursements, lender charges, and settlement adjustments.
First month: insurance, moving, connection fees, and changing locks.
If you plan those three buckets from the start, the costs stop feeling like they come out of nowhere.
Practical ways to avoid surprises
If you want to avoid hidden transfer fees, start with these habits:
Ask for an itemised estimate that separates professional fees, disbursements, and GST.
Ask which extra searches might apply for your property type, and what could cause costs to rise.
Confirm when money is payable, including whether any disbursements are paid before settlement.
Ask your lender for a written list of loan related charges.
Plan for settlement adjustments and keep a buffer until after settlement.
One more ‘hidden’ cost: fixing the contract, not just the numbers
The cheapest conveyancing quote in the world won’t help if you sign a contract with terms that don’t suit your situation.
In Victoria, buyers often commit under pressure. At auction you sign then and there. In private sale negotiations, the agent may push for a quick signature to ‘secure the deal’. That’s where a contract and Section 32 review can save you money, because it can uncover issues that lead to extra costs later, like missing owners corporation material, unclear inclusions, or deadlines that don’t line up with your loan approval.
Even when the contract is fine, a review helps you understand what you’re agreeing to, which makes the rest of the process calmer.
Questions to ask before you engage a conveyancer
Can you give me a written cost estimate that includes likely disbursements for this property type?
What searches do you expect to order for this property, and why?
What might cause the disbursements to rise, and how will you tell me if that happens?
When will I need to pay money during the matter, and how much is due at each stage?
If I’m buying at auction, can you review the contract and Section 32 before auction day?
Want clarity before you sign?
Buying your first home should feel exciting, not like you’re being hit with surprise invoices every second week. Clear cost disclosure and plain language explanations make a real difference when you’re juggling inspections, loan approvals, and the pressure of Melbourne’s market.
If you’re about to sign a contract or you’re heading to auction, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review. We’ll talk you through the likely costs, flag issues we can see in the paperwork, and help you plan for settlement with fewer surprises.