When budgeting for the costs of buying a property, it is important that you cover all your bases.
The last thing anybody wants is to come up short or be presented with a surprise expense at the eleventh hour!
That's why it is a great idea to find out all the things you will be required to pay for in the course of a property purchase – what you know, you can plan for!
If you will be financing your property purchase with a home loan, there are several costs involved that you'll need to think about, in addition to the deposit requirement.
You will need to pay a loan application fee to your lender and also pay for a valuation of the property to be carried out by a professional of their choosing.
Your mortgage also needs to be registered with the government, and there is a charge to do so.
If you are borrowing more than 80 per cent of the property's value, you will usually be required by the lender to take out lenders' mortgage insurance. This is to protect the lender in case you fail to pay your loan and is a one-off fee.
As with any property transaction, you will need to pay land transfer tax, also known as stamp duty. This amount varies from state to state, and if you are getting a first home buyer loan you may be eligible for a concession on this duty.
You will also need to budget for legal fees incurred for conveyancing, checking the sale contract and general legal aid.
What's more, many buyers have a professional building inspection carried out before making an offer. If you plan to do this too, make sure it is covered in your budget.
A mortgage advisor can help you to accurately determine all the costs you need to plan for when buying property.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.