When buying a home, people usually just focus on the property’s price. However, there are other fees and expenses involved in the process of home acquisition.
Costs Of Buying A New Home
These costs are significant to the whole process so it’s important to take them into account when setting your budget.
Various fees may be included in your home loan depending on the type of application. You can negotiate with the lender for these fees to be reduced or waived completely. But bear in mind that most lenders who waive fees offer higher interest rates, so don’t get too excited.
Make sure that you consider these fees when searching for a home loan so you can allot a budget. If possible, ask your broker to negotiate for these fees without affecting the other costs of the home loan.
It is not possible to list down all fees involved in a home loan because it varies from lender to lender, but here are some of the usual lender fees:
- Service and Valuation Fees
- Break Costs
- Loan application and establishment fees
- Legal and transaction fees
State taxes, duties and fees
Depending on which state the property is located, there are additional costs that apply as compliance to the laws. These state fees include mortgage registration, mortgage stamp duty, stamp duty and registration fees.
All States in Australia has stamp duty but their governments have varying ways of fees calculation. Some have different reductions and exemptions on stamp duty. All of these will be discussed to you by your mortgage broker.
Legal fees are affected by the value of your property and the State it is located. In general, the range of these costs starts from $1000 up to over $3000 plus disbursements, so better ask around for different quotes.
Regarding legal fees, most solicitors and conveyancers will give you assistance in processing property exchange paper work and help settle your home purchase legally.
Pests and termite inspections
Although these inspections are not a loan condition or a legal requirement, it is best to have it conducted on the property before you buy it. It will help you make sure that your new home is in good condition and there will be no problem once you move in.
Pests and termite inspection reports cost around $250-$500.
Unlike pest inspections, a building inspection is required for a loan approval. However, it is also highly recommended to have your property undergo this inspection for your safety.
This will also help you determine if the property is really worth the asking price. A building inspection report also cost around $250-$500.
Some other smaller expenses that you should consider include, telephone connection cost, utility connection cost, strata cost, moving cost, insurance and renovation expense (this one is optional). These other costs depend on the property’s situation but you still need to include them when computing for your budget.
With all these items already on your list, you will no longer be surprised with any additional costs involved when buying a home. If you are looking for a lender to help you purchase your new property, then look no more.
We Can Help
Finance Ezi has been helping property buyers for many years and our mortgage brokers are experts in all aspects in home acquisition.
Call us now on 1300 003 003 and let us help you with buying your new home. Alternatively, if you need a home loan, you can apply online with our quick application form.