July 30, 2014
Once you have decided to purchase a property you need to understand there are extra costs to factor in, not just the property price.
The general rule is to also allow approximately 5% on top of the purchase price for additional costs.
Costs you may incur:
When borrowing from a lender there will usually be upfront borrowing fees such as:
- Loan establishment fee (allow for up to $700)
- Lenders Mortgage Insurance (LMI) – this one off payment applies unless you can put down a deposit of 20% or more
You will also need to factor in ongoing fees and interest repayments on your loan
- Building Inspection – checking for any structural problems
- Pest Inspection – ensuring the home is free from pests or termites
These inspections need to be carried out by a licensed professional and is recommended to be done right at the beginning when making an offer.
- Stamp duty – This is the State Government tax payable by the buyer and is calculated on the price paid for the property. You can use the stamp duty calculator to get an idea of the costs.
Please note if you are a first home buyer, or building a new home, you may be eligible for some stamp duty concessions.
There may be a number of other government charges you will face including a property transfer fee, mortgage stamp duty and mortgage registration fee.
- Lawyer/Solicitor or Conveyancer –you will need a professional to legally transfer ownership of the property you are buying. They will also need to perform property and title searches to be sure the seller is legally entitled to sell the property.
- Home and contents insurance – this will protect you financially if your home or belongings are damaged.
- Mortgage protection insurance – takes care of all or part of your mortgage payments if for some reason you get injured or too ill to work or even die.
- Income protection insurance – This pays up to 75% of your income if you are ill or injured and unable to work
These are just a few costs and are only a guide of what you may face when purchasing a property.
Please seek expert advice to get a better understand of what extra costs you will incur as each situation is different.
Mortgage Choice in Bundall can help you choose a home loan that is right for you. By meeting with Antony Muir, Mortgage Broker and Franchisee owner, you will be receiving trusted and expert advice; with 28 lenders on his panel and over 300 different loan products to choose from.
Call today to arrange an appointment with Mortgage Choice in Bundall 07 5504 5569 or email firstname.lastname@example.org
Find further information on Mortgage Choice Bundall social media websites.