As you’re preparing for this exciting first step into home ownership, it’s important to remember that the costs of buying a home go beyond mortgage repayments.
On top of the ongoing repayments for your home loan, we’ve listed eight costs you can likely expect to pay when you’re buying your first home.
As stamp duty is a state-based tax, it varies according to your new home’s location. As a first home buyer, you may be entitled to stamp duty concessions in some states.
Sometimes a simple case of beer may be enough for someone who helped you move. For larger relocations, you may need to entrust removalist professionals. Be sure to do your research as there can be big differences in price.
A new home means new power, gas and internet connections. Getting these set up as soon as possible will make settling in a breeze.
Structural problems and pest infestations should be discovered before you buy a new home. It’s vital to organise these inspections before you sign on the dotted line. Don’t forget to factor these costs into your home buying budget.
Be sure to line up home and contents insurance as soon as you sign the contract but before settlement. Most mortgage lenders will require you to show evidence of your insurance before they will settle your home loan, and some lenders will even require to be listed on your insurance policy. Your home is a valuable asset so make sure you protect it!
Loan establishment fees
There’s a big variation in the upfront fees lenders charge, which can include application fees, solicitors’ fees and valuation fees. But don’t fear – your Aussie Broker can tell you straight up how much each lender charges.
Lenders Mortgage Insurance (LMI)
If you borrow more than 80% of your home’s value, you’ll probably be asked to pay LMI, which protects the lender if you can’t keep up with repayments. You may be able to add LMI to the loan balance and pay it off gradually over time.
Buying a property involves a fair bit of behind-the-scenes legal work to transfer the property into your name. It’s also a good idea to have your legal team lined up at an early stage so the contract of sale can be reviewed before you sign, too. The costs of conveyancing vary widely – ask friends and family for service providers they recommend.
The good news is your local Aussie Broker understands the home buying process, and can answer your questions about any costs that you might encounter to help you plan ahead! Chat to us today.
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement