Buying your first / second home...
You've found the home that you want to purchase, and you know the asking price of the property, however there are still a number of other costs that you need to plan and budget for, when buying a property. To help you prepare for your purchase, we've put together a list of additional costs that you need to be aware of.
Very importantly to find out how much you can borrow, simply submit your enquiry below or call one of our friendly experienced staff NOW.
Stamp Duty
There are two types of Stamp Duty you will need to budget for when purchasing your property.
The first, Transfer Duty, is a state government tax which is payable when a property is transferred. It is calculated on the purchase price of the property and is paid by the buyer. This Stamp Duty name and amount varies between states and territories.
The second, Mortgage Stamp Duty, is payable on your mortgage and is calculated on your loan amount.
First Home Owners Grant
People buying their first home here in Australia, may be eligible to receive a grant from the Office of State Revenue, to assist with the costs of buying their residence.
FIRST HOME BUYERS may qualify for substantial concessions on both the above types of Stamp Duty. Simply contact us to find out more…
In addition to assisting you with your home loan needs, we also handle all the paperwork in submitting your First Home Owners Grant application.
Legal fees
You will also need to consider legal fees. When approaching a firm to do your conveyancing, it is important to understand how their fees are structured, and exactly what they cover.
Generally legal fees quoted will not include the searches that need to be done on a property before purchase. The basic searches can cost around $400-$500, and include:
- Contaminated Land Register Search
- Land Tax Search
- Title Search
- Council Rates Search
- Main Roads and Electricity Company Searches
Other searches may be required depending on the location of your property and the information you wish to know about the property. You should seek your own legal advice as to what searches are required and the costs of these searches.
Building and Pest Inspections
Many contracts on houses are signed subject to building and pest inspections. This gives you the opportunity to get the advice from a professional as to the condition of the property you're about to purchase. You should receive both a building and pest inspection report, outlining the current condition of the property, and any issues that you should be aware of.
Property Valuation
Property valuations give you an independent view on how much the property is actually worth. The bank may require a valuation to be performed on the property, before it can approve your home loan application, but any valuation conducted by the Bank is for Bank purposes only and often is not provided to you. If you're unsure whether the asking price for a property is valid, a property valuation may give you the additional piece of mind you need.
Lenders Mortgage Insurance
If you are looking to borrow more than 80% of the purchase price of the property, you will need to pay lenders mortgage insurance. Mortgage insurance protects the Bank against default of the loan. The fee is based upon the amount you are going to borrow and the loan to value ratio (LVR).
Not all of the above costs may apply to your situation, however they are costs that you should be aware of when purchasing a property.
Client Testimonial
What I liked most about the service you provide is your no hassle attitude. Everything is explained simply making the process easy to understand. As first home buyers who have not been through the process before, your guidance made this step less daunting.
Before we were both renting, now with the help of Bayside Home Loans, we have finally reached one of our goals in life in purchasing our first home.
A Crosby
