11+mortgages

Closing and Ownership Costs

Buying a property carries costs beyond the deposit — legal fees, valuation, survey, and insurance — that fall due at completion and cannot be added to the mortgage. Budgeting roughly 3–5% of the price separately prevents a last-step shortfall.

In this lesson

Closing and Ownership Costs is part of Understanding Home Financing. This preview shows how mortgages connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.

Think about this money choice

Temi signs a mortgage and is surprised to receive a bill for legal fees, valuation costs, and insurance before she even moves in.

How it works

Property purchase involves costs beyond the deposit and mortgage. Legal fees (conveyancing, searches, contract preparation), valuation fees (required by the bank to confirm the property's worth), survey costs (structural assessment), and compulsory insurance (buildings insurance often required at completion) all arise before or at the point of completion. These costs must be budgeted separately from the deposit — they cannot be borrowed as part of the mortgage.

Apply it to a real decision

Real-life money moment: Temi's mortgage is approved. She expected her only cost was the deposit. Then: legal fees 150000 in local currency, bank valuation fee 50000 in local currency, building survey 75000 in local currency, mortgage processing fee 80000 in local currency, and buildings insurance first premium 45000 in local currency. Total additional costs: 400000 in local currency — payable immediately alongside the deposit. She had not budgeted for any of it.

Activity preview

Apply the idea

Use the lesson to complete this short practice activity.

Build your own savings goal

Progress Penguin will guide you through the goal name, target amount, and deadline. When you finish, you will return to this exact lesson step.

Quiz preview

Closing and ownership costs when buying a home include:

Government closing costs that are always identical regardless of purchase price

Only the purchase price and the mortgage deposit — all other costs are covered by the seller

Legal fees, agent commissions, title registration, stamp duty, and survey costs

Only costs above 1000000 in local currency since smaller closing costs are absorbed in the purchase price

You buy a 25000000 in local currency property. Closing costs typically range from 2-5% of the price. You should budget:

500000 in local currency to 1250000 in local currency on top of the deposit and purchase price for closing costs

Nothing beyond the deposit since closing costs are a negotiating point always waived

25000000 in local currency in additional costs since closing equals the purchase price

A fixed 500000 in local currency since all local property transactions have standardised closing costs