How much title insurance costs in Australia is relatively cheap compared to US, being one-off premium not annual. Title insurance from First Title Australia and Stewart Title costs $300 to $1,200 one-off for residential property depending on property value and type, covering you for as long as you own property. For example, for property value up to $500,000, premium is about $300 to $500, for $500K to $1M, $500 to $800, for $1M to $2M, $800 to $1,200, for $2M+, $1,000 to $2,000. For vacant land, cheaper $200 to $400. Premium is calculated on property value and includes GST. It covers unknown risks like fraud, forgery, illegal building works, unapproved structures, boundary encroachments, outstanding rates and planning issues not found in searches, up to purchase price. For instance, $750K house premium about $600 one-off for lifetime cover. Compared to conveyancing fees $1,500 to $2,500 and lenders mortgage insurance $5K to $20K, title insurance is small. It is optional, not mandatory, unlike in US where it costs 0.5% to 1% of value. Many conveyancers offer it at settlement via PEXA. So cost is low one-off, $300 to $1,000 for most residential properties, making it affordable peace of mind for first home buyers and older properties with unapproved extensions.
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