Closing Costs in Hawaii: What Buyers Need to Know ?

Welcome to the beautiful islands of Hawaii! Whether you’re dreaming of a beachfront property in Maui or a cozy home in the hills of Oahu, understanding the closing costs associated with buying a home in Hawaii is crucial for a smooth transaction. Here’s everything you need to know to be prepared.

Introduction to Hawaii’s Real Estate Market

Hawaii’s real estate market is as diverse as its landscape, offering everything from luxurious resorts to single-family homes. However, buying a home here comes with its own set of rules and costs. Let’s dive into what you can expect in terms of closing costs when purchasing your Hawaiian dream home.

What Are Closing Costs?

Closing costs are the fees and expenses you pay to finalize a mortgage, which are over and above the price of the property itself. These costs can include loan origination fees, appraisal fees, title searches, title insurance, taxes, and more.

Average Closing Costs in Hawaii

On average, buyers in Hawaii can expect to pay between 1% and 3% of the home’s purchase price in closing costs. However, this can vary significantly based on the property’s location, the loan type, and the lender.

Breakdown of Closing Costs in Hawaii

Loan-Related Fees

  • Loan Origination Fee: The charge for processing your loan application.
  • Credit Report Fee: The cost of accessing your credit history.
  • Appraisal Fee: Paid to the appraiser who assesses the home’s value.

Property-Related Fees

  • Title Search and Title Insurance: Ensures the property is free of liens and covers potential title disputes.
  • Survey Fee: May be required to verify property boundaries.

Government Fees

  • Recording Fees: Charged by the county to record the sale.
  • Transfer Tax: Hawaii imposes a conveyance tax on real estate transfers, which varies by county and property value.

Prepaid Expenses

  • Property Taxes: Buyers often pay two months of city and county property taxes at closing.
  • Homeowners Insurance: Lenders require the first year’s insurance premium upfront.
  • HOA Fees: If applicable, buyers might need to pay several months of homeowners association dues.

Tips for Reducing Closing Costs in Hawaii

  • Shop Around for Lenders: Compare closing costs and fees from different lenders.
  • Negotiate with the Seller: In some cases, sellers may agree to cover part of the closing costs.
  • Ask for Lender Credits: In exchange for accepting a higher interest rate, your lender might offer credits to offset closing costs.


Buying a home in Hawaii is a dream for many, but it’s important to budget for all associated costs, including closing fees. By understanding these expenses ahead of time, you can navigate the home-buying process more smoothly and avoid any surprises.


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