Home buying costs

Aside from the purchase price, expect various additional costs such as purchase stamp duty, property transfer fee, mortgage registration fee, loan application fee, lender’s property valuation, lender’s mortgage insurance (LMI), conveyancing/solicitor’s fees, pest/building inspections, various construction-related costs, and several types of insurance (e.g., home and contents, mortgage protection, and income protection insurance). Typically, it’s advisable to set aside an extra 5% of the property’s purchase price to cover these.

Purchase Stamp Duty is a tax imposed by the state government, payable by the buyer. It’s calculated based on the property’s purchase price and applies whether or not the purchase is financed with a mortgage. Some first-time buyers may qualify for rebates or exemptions.

Absolutely! OzBroker can guide you through the various loan application costs, including the application fee, understanding lender’s property valuation, and navigating the intricacies of Lender’s Mortgage Insurance (LMI), ensuring that you’re well-informed and prepared for every financial step in your home-buying journey.

LMI is an insurance that safeguards the lender, not the borrower, against potential losses if the borrower defaults on the loan. It may be added to your final loan amount, depending on the lender, and it is distinct from Mortgage Protection Insurance, which provides cover for the borrower under various circumstances.

Conducting pest and building inspections before finalizing your purchase ensures that the property is free from harmful infestations and structural issues, adhering to building regulations. These inspections, while an added cost, can prevent potential future expenses and are sometimes a condition for loan approval from lenders.

During new home construction, you may encounter additional costs such as construction loan fees, site costs (like hitting rock or needing retaining walls), and service connection costs if power, water, and phone connections exceed standard distances from the street to the house. These can potentially add thousands to your initial budget.

Commonly considered insurances when purchasing a home include home and contents insurance, mortgage protection insurance, income protection insurance, and building insurance. Each type of insurance provides different coverages, such as protection against damage to the home, covering mortgage payments under specific circumstances, and ensuring your income in case of injury or illness.

OzBroker provides expert guidance through each step of your home-buying journey, ensuring clarity and confidence in each decision you make. From helping you understand potential costs, facilitating loan processes, assisting with insurance options, and offering professional advice, we’re here to ensure your path to homeownership is smooth and transparent.

Conveyancing/solicitor’s fees are charged for the legal work involved in the purchase of real estate. This includes handling contractual aspects, conducting property searches, managing settlements, and organizing disbursements, ensuring that all legalities are adequately managed and the property transfer is legitimate and binding.

Starting your home buying journey with OzBroker is simple! Get in touch with our dedicated team today. We’re committed to guiding you confidently through every step of your homeownership path, ensuring every question is answered and every detail is clarified, making your dream home a reality.