Home Buying Costs: Down Payment, Taxes & Fees Checklist

Q: How much cash do I need for a ¥3M home?

First home at 20% down: ¥600k. Add deed tax ¥30k (1%, ≤140㎡), agency fee ¥30–60k on a resale, maintenance fund ¥15–25k, appraisal and misc ¥5k. Total cash needed: roughly ¥680–720k — about 23–24% of the price, not just the 20% down payment.

Q: How is deed tax calculated?

Deed tax = price × rate. First home: 1% up to 140㎡, 1.5% above. Second home: 1% up to 140㎡ in most cities (2% in some), 2–3% above. Third+ homes: 3%. The taxable price is the contract price or government assessment, whichever is higher.

Q: What extra costs apply to resale homes?

Agency fee 1–2.7% (negotiable), appraisal fee 0.1–0.5%, and potentially VAT (5.3% if under 2 years) and seller income tax (1% or 20% of gain) that sellers often push onto buyers in strong markets. Clarify who pays what in the contract before signing.

Q: What is the maintenance fund?

A one-time payment (~¥100–200 per ㎡ or 2% of price by city) into a building repair reserve, paid before handover. It belongs to the owners' committee for major repairs like elevators and roofs. It is not a fee you can skip — the deed will not register without it.

Q: Can I use my housing fund balance for the down payment?

In many cities you can withdraw HPF after signing to reimburse the down payment, but you cannot typically withdraw before paying. Plan bridge funds accordingly. Some cities now allow direct HPF-to-developer transfers for new builds — ask your local HPF center.

Q: What costs do buyers forget most often?

Renovation deposits, utility connection fees on new builds, parking space costs (¥100–300k in tier-1 cities), property management prepayment (3–12 months), and mortgage registration fees. Budget an extra 3–5% of the home price for these soft costs beyond the formal taxes.

Key Takeaways

Down payment: first home 15–30% by city policy; second home 25–40%

Deed tax: 1% (≤140㎡ first home), 1.5% (>140㎡ first home), 2% (second home ≤140㎡), 3% otherwise

Agency fee: 1–2.7% negotiable on resales; new builds have none

Maintenance fund: ~¥100–200/㎡ or 2% of price, paid before handover

Core answer: Buying a ¥3,000,000 home costs roughly ¥3.15–3.25M all-in for a new build (down payment ¥450–900k + deed tax 1–3% + maintenance fund + agency fees for resale). The complete list: down payment → deed tax (契税) → maintenance fund (维修基金) → agency fee (中介费, resale 1–3%) → VAT & income tax on resale (usually seller's, but often passed on) → registration, valuation, mortgage fees → renovation budget. Never budget only the down payment.

The full cost stack

Item	Typical amount	Who pays
Down payment	15–30% (first home)	buyer
Deed tax 契税	1–3% of price	buyer
Maintenance fund	¥50–200/m² or 2–3%	buyer
Agency fee	1–3% (resale)	buyer/negotiable
VAT 增值税 (resale <2yr)	~5.3%	seller*
Income tax (resale)	1% or 20% of gain	seller*
Mortgage/registration/valuation	¥1,000–3,000	buyer

* In many markets the seller's taxes get negotiated INTO the price — the buyer effectively funds them.

Worked examples

Example 1 — New build, ¥3M, 90 m², first home. Down 20% = ¥600k; deed tax 1% (≤90 m² preferential in some cities, else 1.5%) = ¥30k; maintenance fund ~¥10k; fees ¥2k → cash needed ≈ ¥642k, total cost ≈ ¥3.04M.

Example 2 — Resale, ¥3M, "满五唯一" (seller's only home, owned 5+ years). VAT exempt, seller income tax exempt; buyer pays deed tax 1.5% ¥45k + agency 2% ¥60k + fees → extra ≈ ¥107k on top of price.

Example 3 — Resale, NOT 满二 (owned <2 years). VAT 5.3% = ¥159k + income tax 1% = ¥30k — ¥189k of seller taxes that a "low asking price" may be quietly passing to you. The SAME apartment at ¥3.1M 满五唯一 can be cheaper in reality than ¥3.0M 不满二.

Example 4 — Mortgage-side cash. ¥2.4M loan at 3.3%/30yr: payment ¥10,510/mo; banks require income ≥ 2× payment (¥21k/mo provable). Add valuation fee ~¥1,000 and registration ¥80–550.

Common mistakes and myths

Budgeting only the down payment — taxes + fees + renovation add 5–10%; the "we scraped the down payment" plan collapses at the tax window.
Ignoring 满五唯一 / 满二 status — it swings the tax bill by ¥100k+; check the seller's certificates BEFORE negotiating price.
Assuming listed price = seller taxes included — in practice "各付各税" vs "买家承担全部税费" are both common; get it written into the contract.
Forgetting renovation — ¥1,500–3,000/m² means a 90 m² home needs another ¥150–270k before it's livable.
Not stress-testing the mortgage — payments should survive one income loss for 6 months; an emergency fund is part of the purchase budget.

Frequently Asked Questions

How much cash do I need for a ¥3M home?

First home at 20% down: ¥600k. Add deed tax ¥30k (1%, ≤140㎡), agency fee ¥30–60k on a resale, maintenance fund ¥15–25k, appraisal and misc ¥5k. Total cash needed: roughly ¥680–720k — about 23–24% of the price, not just the 20% down payment.

How is deed tax calculated?