The Hidden Costs of Buying A Home

 

The Hidden Costs of Buying A Home

There are many fees and expenses that need considering when buying a home.  Most buyers focus on the purchasing price and neglect the fees until they find the right home.  Knowing the purchasing costs before you start your house hunt can save you in disappointment and wasted time.

So what are the costs?

Mortgage application fee

✅As the name suggests, this is the fee for setting up the home loan.  It is paid to the lender.  

✅Usually costs around $395 to set up.

✅Make sure your broker checks whether this fee can be waived if you have a strong application.

Mortgage registration fee

✅This is the fee for registering your mortgage on the title of the property.  

✅This costs around $200 and is a government fee.

Stamp Duty

✅Also known as 'Transfer Duty,' this state tax is based on a sliding scale on the purchasing price.  It is one of the biggest fees of buying a property and differs from state to state.

✅ Here is the NSW transfer duty calculator

Transfer Fee

✅This is the cost of being registered as the new property owner at the Land Titles Office.

✅NSW land registry services

Lenders Mortgage Insurance 

✅This fee is payable when you have less than a 20% deposit for your property purchase.

✅This is to insure the lender against you - as the borrower - from defaulting on your mortgage repayments.

✅This can be as large as stamp duty and also works on a sliding scale.  The higher your Loan-to-Value ratio or LVR, the higher the LMI.

✅Speak to Mortgage Broker Revesby about LMI.  Sometimes reducing your LMI by as little as $1,000 can reduce your fee by half.

✅There are plenty of lenders that will waive LMI for certain professions like 1st responders, teachers, lawyers and accountants.  

Pest & Building inspection fees

✅It's wise to make any offer on a property subject to pest inspection.

✅This will cost around $1,000 but will help you avoid pest infestations later.

Conveyacer Costs

✅Should be around $1,500-$2,000.

✅A conveyancer will lead the way on the transfer of the title and ownership of the property.  They will protect you in the whole process of taking ownership of the property.

✅Help you pay transfer duty & organise the contract of sale.

✅Take care of strata inspections.

✅Check the body corporate records.

✅Full title search to ensure the seller has the right to sell.

Utilities

✅Largely forgotten, however there are fees involved when connecting water, electricity and internet.

✅Have these organised for the day before you move in so you are not left without power.

✅Expect a cost of $800 or more.

Moving costs

✅Hiring a removalist can run you $2,000 or more.

Maintenance

✅Expect the unexpected!  Small repairs like landscaping or plumbing works can add up, so budget a small kitty.  You may get lucky and not need to spend.

Insurance

✅Life and income protection: you should have these in place while you have a mortgage.  This will cover you in the event the income earner becomes unwell and cannot work, while life insurance will cover the outstanding mortgage in the event of sickness or death.

✅Home and contents insurance will protect you against theft, fire and storm damages.

✅Building insurance alone may cost $1,200 per year. 

✅Contents insurance is extra and covers your appliances and belongings.

Speak to Mortgage Broker Revesby about the fees involved in your property purchase.  We have a panel of 30 lenders and can help explain your options. 

We do not charge a fee.

Matthew Stack

matthew@mortgagebrokerrevesby.com.au

www.mortgagebrokerrevesby.com.au

0423 237 242

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