Professionals Clyde Poulton Real Estate
68 Bridge Rd Nowra
02 4421 2644
02 4421 2330Contact us
Buying an apartment or home is not just about the final price when you sign your contract. There are various fees and costs associated with purchasing property.
Unless you have at least 20% of your deposit, most lenders will require you to pay for additional mortgage insurance. This cost is dependent on the size of your deposit, so the less deposit you have, the more you have to pay in mortgage insurance. Keep this in mind if you have a low deposit – it is still possible for you to purchase a home, but you will have to pay more for your mortgage insurance.
Many things do not come free when you buy a home! When you take out a home loan you will also have to pay to set the loan up. The application fees for loans are usually around $500-600 depending on your bank or lender. Ask your lender if they can waive this fee, as they can in some circumstances.
Legal and conveyancing fees
There is a lot you can do yourself when you buy a home but we recommend you use a conveyancer or solicitor to prepare and organise all the documents for your contract of sale. Not only will they help with the paperwork, they are great to give advice if you need. It really depends on how you have structured the ownership of your future property but you can expect to pay around $1800-$2000 for your fees.
Stamp Duty costs
It is an essential cost to purchasing property and can often cost tens of thousands of dollars depending on the state you live in and the price of your home. There are many stamp duty calculators you can source online which will give you an estimate on how much you will have to budget.
If you are a first homebuyer, you may be eligible for various concessions depending on the price of your home and what state you are located in.
Visit the State Revenue Office website for more information and to utilise their online calculators.
Inspections: Building and Pest
If you are buying an older home or apartment, you may want to take out a building and pest inspection before you sign on the dotted line. An inspector will be able to assess if the property has any hidden damage to the structure or pests such as termites that may add unforeseen costs when you move in. You would expect to pay around $500-600 for your inspections. Many first homebuyers don’t want to have to fork this out, but it’s important you know what you are buying especially as it is such a huge purchase.
Transfer fees and mortgage registration
When you take out a mortgage, the registration process will cost around $144 dollars in Victoria. Again, the costs vary from state to state alongside the transfer fees for the title. Your solicitor or conveyancer will be able to advise on the exact amount.
The Real Conversation – 26 Feb 2018