February 03, 2017
When you start planning to buy a property there are some costs in addition to a deposit that you should take into account.
It's always a good idea to think about building and pest inspections to make sure that the property you buy is structurally sound. For apartment purchases a strata search will provide key information on things like levies that will be payable, insurance requirements and the history of repairs.
Lenders will also charge for setting up a home loan. These costs vary according to the lender and the purchase type but could include a loan application fee, a valuation fee, a settlement fee or a package fee.
The state government also imposes costs such as stamp duty, property transfer fees and and mortgage registration fees. Stamp duty is charged as a percentage of the purchase price and can come as a bit of a shock. Duty on a purchase of $500,000 is a little under $20,000.
Finally, it is always advisable to make sure you have adequate insurance in place to protect both the property and you in the event that your income changes.
Mortgage brokers can help you understand what these costs will be for your particular situation, how much you can borrow, what deposit you will need and whether there are any government concessions that apply.