Costs of buying property
Fees and duties, taxes and insurances – all the costs of moving can really start to add up. Here’s a little bit more information about each one to help you to work out what you might have to pay.
- Loan application fee
- Valuation Fee
- Lenders Mortgage Insurance
- Property stamp duty
- Mortgage stamp duty
- Mortgage Registration Fee
- Conveyancing Fees
- Inspection Reports
Sometimes called an establishment fee, you pay this to your lender for processing your loan. This fee varies from lender to lender, but usually shouldn’t exceed $750.
Your lender will arrange a valuation of the property to assess its value - allow approximately $250 for this.
Should there be more than one property offered as security, a valuation fee will also apply for each additional property.
This one-off fee, paid by you, protects your lender if you fail to pay your loan and the property has to be sold, but the money raised does not cover the loan. Mortgage Insurance is usually required if you are borrowing more than 80% of the property value. It is is calculated on a sliding scale so depending on the loan amount and ratio the insurance and can be expensive. Note...occasionally some funders have specials where the insurance premium for loans up to 85% of the value of the property is paid by the bank - please check with Westpro Finance to ensure these specials are still available.
This tax is payable to the Government on most property purchases. The amount varies from state to state, and also depends on the value of the property.
This fee depends on the size of your loan and is different from state to state. Mortgage Stamp Duty for owner occupied home loan has now been waived by the NSW government for loans up to $ 1M. Before proceeding with a loan application, please check with Westpro Finance to ensure mortgage stamp duty will not be charged in relation to your loan.
This is a charge made by the Government to register your mortgage document.
Fees for solicitors and conveyancers vary from State to State, and depend on the time and work that they have to carry out for your purchase. The fees should include checking the contract, carrying out searches, and generally making sure that the transaction goes smoothly.
Having your property inspected is an important element of the buying process. Costs will depend on the size and condition of the property, and ease of access to concealed areas. Depending on the ga eof your property and its location, most clients will order a Pest Inspection report and a Building Inspection report. Companies that offer this type of service can be found in the yellow pages.