Costs associated with purchasing property

Purchasing a property is very exciting and saving for a deposit in the lead up is what most people tend to focus on. You should consider that there are costs associated with purchasing that you may not have budgeted for. To make the planning a little easier we have provided you with some examples of just how much you will need before applying for your home loan.

 

Purchasing a property with 80% LVR

Purchase price:                   $350,000                                                   

20% Deposit:                        $70,000

Costs:                                    $7,000**

Total contribution:               $77,000

 

**Costs breakdown

Lender settlement fee:           $200

Borrower legal fee:                $1,500

Property stamp duty:            $3,500 (not payable if you are a first home buyer)

Registration – Mortgage       $140

Registration – Transfer         $737

Pest inspection fees                 $250

Building inspection fees         $250

Other expenses                         $423

 

 

Purchasing a property with 95% LVR

Purchase price:                     $350,000

5% Deposit:                            $17,500

Costs:                                       $7,000

Total Contribution:               $24,500

 

Your costs will be the same as the previous example however you will also need to pay Lenders Mortgage Insurance (LMI). Some lenders may allow you to add this onto the loan while other lenders may require you to contribute additional funds to cover this. Your minimum deposit required for a 95% LVR will be $35,500. 

Posted in: Home loans

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