Home buying costs in NZ: legal fees, LIM, reports and more

Buying a home costs more than the price. On the single-source ranges in our research, the four common professional costs (a lawyer or conveyancer, a council LIM, a building inspection and a registered valuation) add up to about $2,863 to $5,525, before GST on the legal fee and before insurance, moving and any low-deposit charges. That money usually comes out of the same savings as your deposit, so it shrinks what you can borrow: on a $150,000 deposit at the standard 80% limit, paying $5,525 of costs first lowers the most you could pay from $750,000 to $722,375. Below we go through each cost, mark every figure that rests on one source, and show how to budget for them. Banks decide; this is general information, not financial advice.

The main costs at a glance

Here are the costs most buyers meet between finding a home and moving in. The ranges come from our research file and every one is marked UNVERIFIED, because each rests on a single source or on secondary sites. Bank pages we read (for example Kiwibank’s due diligence guidance) say only that costs “vary”, without figures. Use these as a starting point and get real quotes.

Adding the low ends gives $2,863 and the high ends $5,525. If you do not need a valuation (for example, you have a 20% deposit and buy through an agent, and your bank does not ask for one), the range drops to $2,163 to $4,025. GST at 15% on the conveyancing fee alone turns $1,400 to $2,500 into $1,610 to $2,875, before disbursements, which are search and registration costs the lawyer passes on.

Legal fees and the LIM

Conveyancing. A lawyer or licensed conveyancer checks the sale and purchase agreement, searches the title, handles the money on settlement day and registers the transfer. Tremains, a law firm, says purchase conveyancing is “often between $1,400 and $2,500”, plus GST and disbursements (16 June 2026). That is a single source, so we mark it UNVERIFIED. Ask for a written quote up front and check exactly what it includes and which disbursements are extra.

The lawyer also matters for your deposit. A KiwiSaver first-home withdrawal is paid to your lawyer or conveyancer, not to you, so leave time for that application; our KiwiSaver first-home withdrawal guide covers the rules.

LIM. A Land Information Memorandum is a council report on what the council knows about the property, such as consents, zoning and known hazards. Fees are set by each council. The examples in our research are Waimakariri District Council at $263 for an electronic LIM and $325 for a hard copy (2026/27), and Queenstown Lakes District Council at $304.56 for a residential LIM. We could not find Auckland’s fee, so check your council’s fee schedule. Order it early if your conditions give you only a short time to check the property.

Building report and registered valuation

Building inspection. A building inspector looks at the condition of the house and reports problems such as leaks, rot or unconsented work. Secondary sites put the cost at about $500 to $1,200 depending on the size of the home (accessed 10 November 2026). We mark that UNVERIFIED: none of the sources was official or a bank.

Registered valuation. A registered valuer gives an independent value of the property. Sorted says lenders usually require one when you borrow more than 80% of the value, or when you buy privately rather than through an agent. Secondary sites put the cost at about $700 to $1,500 (UNVERIFIED). The valuation matters for borrowing: if it comes in under the price, a bank may lend on the lower figure, and your deposit may then need to cover the gap. Ask your bank how it treats a low valuation. Our LVR and deposit rules guide explains why.

A practical point: we suggest getting pre-approval before you spend money on reports, so you pay for inspections only on homes you can finance.

Charges that come with a low deposit

If your deposit is under 20%, expect a charge that a 20% buyer does not pay. These are not upfront fees in every case, but they belong in your budget.

• Kāinga Ora First Home Loan premium. For applications lenders received after 1 July 2025 the premium is 1.2% of the loan, up from 0.5% (Kāinga Ora FAQ, 22 May 2025). Borrowers can pay it upfront or across the life of the loan. Kiwibank passes on 1.00% of the loan amount, which can be added to the loan. On a $750,000 home with a 5% deposit ($37,500), the loan is $712,500: 1.2% is $8,550 and Kiwibank’s 1.00% is $7,125. See our First Home Loan guide.
• Low equity premium or margin. ASB, BNZ and Westpac add a yearly premium to the loan when the LVR is above 80%; ANZ and Kiwibank charge higher rates instead. For a loan of 85.01% to 90% of the price, all three published 0.75% a year (Canstar, rates at 24 June 2026; UNVERIFIED, one source). On a $675,000 loan (90% of $750,000) that is about $5,062.50 a year while the LVR stays in that band. Our low deposit guide has every band.
• Registered valuation. As above, usually required above 80% LVR.

How buying costs shrink what you can borrow

Banks lend against the deposit you actually put into the purchase. If your savings have to pay the lawyer and the inspector too, less is left for the deposit, and at a fixed LVR every dollar of deposit supports four dollars of loan (at 80%). Here is the effect on a buyer with $150,000 saved, at the standard 80% owner-occupier limit, using our engine’s deposit formula (loan = deposit x 0.8 / 0.2).

So $5,525 of costs takes about $27,625 off the price you can reach, because the costs come off the deposit and the deposit is geared four to one. This only applies when the deposit is the limit that binds. If your income is the tighter limit (serviceability or the debt-to-income rule), the deposit has some slack and the costs matter less. Our buying costs calculator takes your own quotes, and the deposit calculator shows what is left for the deposit.

Building your budget

We suggest listing costs in three groups and keeping them separate from the deposit in your savings plan:

1. Before you go unconditional: LIM, building inspection, any valuation, and possibly a lawyer’s review of the agreement. You may pay these on homes you do not buy, so allow for more than one.
2. At settlement: the lawyer’s fee and disbursements, house insurance in place from settlement day, and any First Home Loan premium you choose to pay upfront.
3. After you move: moving costs, connections, and any repairs the building report found. We found no reliable source for moving or insurance costs, so we give no figure; get quotes.

A simple rule: decide your deposit first, then add the costs on top, rather than treating your whole savings balance as the deposit. Our saving a deposit guide and first home buyer steps show where each cost falls in the process.

Rates as at 10 November 2026; test rates confirmed July 2026. The cost ranges are dated snapshots and can change at any time.

Questions people ask

How much are buying costs in New Zealand?

On the single-source ranges in our research, conveyancing, a LIM, a building report and a registered valuation add up to about $2,863 to $5,525, before GST on the legal fee, disbursements, insurance and moving. Get quotes: these ranges are UNVERIFIED.

Do I always need a registered valuation?

Not always. Sorted says lenders usually require one when you borrow more than 80% of the value or buy privately. Your bank will tell you if it needs one for your purchase.

Can buying costs be added to the home loan?

Some can. The First Home Loan premium can be paid upfront or over the life of the loan, and Kiwibank says its 1.00% fee can be added to the loan. Legal fees, reports and the LIM are usually paid from your own money. Ask your bank.

Do buying costs affect how much I can borrow?

Yes, if they come out of your deposit and the deposit is the limit that binds. At 80% LVR, each $1 less deposit means $4 less loan, so $5,525 of costs lowers the highest price on a $150,000 deposit from $750,000 to $722,375.