What do we allow for when calculating your loan requirements for a purchase?

July 28, 2014
Peter Ruddock

There are many fees and costs incurred in purchasing a property, so what have we taken into account when calculating your loan requirements?


Purchase Costs

  • Loan application fee
  • Lender’s legal fees
  • Your legal fees
  • Property Stamp duty
  • Registration – Mortgage
  • Registration – Transfer


But, more importantly, what haven’t we allowed for:

  • Building & Pest inspection. While we think these are very important, not everyone includes these and wants them done. Therefore, if you’re like me and would like them done, allow $600 - $700 to get both inspections done
  • Removalist. Since this is an optional thing, we have not taken into account any cost related to using a removalist
  • Connections & Disconnections. We have not allowed for anything here. Send us an email if you would like our 'moving checklist' which will prompt you of all the things to think about to have turned off or turned on when you move house.
  • Building & Contents insurance. Since some people will be transferring their cover from their existing home to the new one, we have not factored in any insurance cost. By the way, we believe you should have the new place insured (building insurance) from the time you have an accepted contract of sale.
  • Council Rates. Did you know that as part of a purchase settlement, the council rates are paid in full for the remainder of that financial year? Therefore, as an example, if your property settlement is in July, you need to pay the rates through until the end of June next year so you have 11 months’ worth to pay? Similarly, if your settlement is in March, then you are responsible for March through to June. The next time you get your rates renewal you can pay it in instalments but not in the year of settlement.


Have you realised it’s a good idea to have a good broker working for you? For more information, contact Peter Ruddock on (03) 9877 6471 or peter.ruddock@mortgagechoice.com.au

Posted in: Tips

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