The Purchase Price Isn't the Price

Melly Schute • July 15, 2026

"The purchase price gets you through the front door. Understanding the true cost gets you to settlement."

One of the biggest surprises for many property buyers isn't finding the perfect home or making an offer. It's discovering that the purchase price isn't actually the total amount they will need to complete settlement.

Almost every week we speak with buyers who understandably assume that if they are purchasing a property for $1,000,000, that is the figure they need to budget for. In reality, the purchase price is only one part of the equation.

 

Before settlement can take place, a number of additional costs come together. Stamp duty, government registration fees, electronic settlement fees, legal costs, council and water adjustments, Owners Corporation adjustments and, depending on your lender, bank fees all contribute to the final amount required to complete your purchase.

 

While some of these costs are fixed and others vary from property to property, they are all genuine expenses that need to be accounted for well before settlement day.

 

It is one of the reasons we encourage clients not to stretch themselves to their absolute borrowing limit. A finance approval tells you how much the bank is prepared to lend. It does not necessarily tell you how much cash you will need available to complete the purchase.

 

Fortunately, working out these figures is not something you need to do yourself. In the days leading up to settlement, your lawyer prepares a detailed Statement of Account. Once your lender has confirmed the funds they will contribute, government charges have been assessed and settlement adjustments have been agreed between the parties, every dollar is accounted for.

 

You will know exactly what your lender is providing, what fees and government charges are payable and whether any additional contribution is required from you to complete settlement.

 

Because some figures are only finalised shortly before settlement, we also recommend keeping a reasonable buffer available. Small adjustments can occur right up until settlement day and having that flexibility helps ensure settlement proceeds smoothly without unnecessary stress or last minute scrambling.

 

Buying property is one of the biggest financial commitments most people will ever make. Knowing the true cost before settlement allows you to budget with confidence, avoid surprises and focus on enjoying one of life's biggest milestones.

 

At MLS LEGAL, our role extends well beyond reviewing contracts and attending settlement. We guide our clients through every stage of the transaction, explain exactly where every dollar is going and ensure they understand the financial side of the process before settlement day arrives.

 

Because the purchase price gets you through the front door.

Understanding the true cost gets you to settlement.

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