Monday 26th September 2016
Buying a home costs far more than it’s sale price.
There are countless other expenses involved, several of which you may not expect when you make your purchase. If these come as a surprise, they could derail your property dreams and leave you struggling to make mortgage repayments.
With the goal of making your first home loan a straightforward and stress-free affair, read on for three of the most commonly unexpected costs of buying a home.
If you’re borrowing over 80 per cent of your homes purchase price this often identifies you to your lender as a high-risk borrower. As a result you may have to pay a one-off fee in the form of lender’s mortgage insurance to your lender in order to insure them in then unlikely event that you default on your home loan.
This cost varies from lender to lender, and you may be able to avoid it entirely with smart financial planning. It’s best to speak to us for advice on avoiding this niggley expense, as they’ll be able to access countless loan products many of which will be perfect for you.
With the sage advice of a professional adviser on your side, none of these will come as surprise.
Banks will advertise their base interest rates on home loans clearly. It’s important to remember that this is rarely what you’ll actually pay, on top of this rate you’ll may have to pay establishment fees, late payment fines, administration fees and a host of other such payments.
With the sage advice of a professional adviser on your side, none of these will come as surprise and you’ll pay exactly what you expect, every step of the way.
This is the Voldemort of hidden costs when it comes to buying a home. Most buyers are aware of its existence, yet several still underestimate how formidable it may be and avoid speaking its name entirely. This fee scales with the size of your purchase and varies state to state, and/or according to your intended use of the property.
As an example these are rough estimates for the stamp duty on the purchase of a $500,000 existing first home to be used as a primary residence – calculated using Stamp Duty Calculators Australia. It’s always best to check with your local governing body or a mortgage broker to be sure about your stamp duty.
These costs aren’t the only ones that may surprise you either. Make sure your entering into a home loan contract with your eyes open by seek the advice of a mortgage broker well-versed in every little cost of buying a home.