What are the applicable costs for purchasing a house?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: What are the applicable costs for purchasing a house?

Post by Otto Dargan »

Hello Holocene. Welcome to the forum.

Congratulations on receiving your PR. :)

Yes, most lenders treat permanent residents as par with the citizens for a home loan and they’re given the same interest rate and discounts.

While purchasing a property, generally you can expect to spend up to 5% of the contract price on fees, duties and other charges when you are buying a property.

To help you find out the amount that you may need to pay when buying a house you can use our purchasing costs calculator. Please remember this is just an estimation and the actual amount may differ according to each lender.

Please also note that this calculator will only show you the government fees that you are required to pay. They are as follows:
  • Purchase stamp duty - This is a tax levied by the state government on all property purchases.
  • Mortgage stamp duty - This is a tax levied by the state government based on the size of the mortgage. It has been abolished in most states.
  • Transfer fee - This is a government fee for registering your name on the title of the property and removing the vendor’s name.
  • Registration fees - This is a government fee for registering your lender’s mortgage on the title of your property.
In cases where the vendor has a mortgage on the property, the removal of their mortgage may be charged to you. This cost will then be reimbursed by the vendor at the settlement.

You can enquire online or give us a call on 1300 889 743.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What are the applicable costs for purchasing a house?

Post by Otto Dargan »

Hi Holocene,

Apart from the list of government fees mentioned above, there is a range of additional costs which aren’t included in this calculator:
  • Conveyancing costs: You’ll need to hire a conveyancer or solicitor to handle the transfer of the property into your name. This will cost approximately $800 to $1,500.
  • Inspections / Reports: You may need a building inspection, pest inspection and a strata report. These can cost up to $600 in total. Please discuss these reports with your conveyancer to see if they are required.
  • Loan fees: Some lenders charge an application fee, settlement fee or valuation fee. These fees vary from $0 to $900.
  • Lenders Mortgage Insurance (LMI): If you’re borrowing over 80% of the property value then you may pay LMI. Please use our LMI Calculator to get a quote.
There may be other costs such as repairs to the property, renovations, hiring a removalist and council/water rates adjustments. You should discuss the costs of buying a property with your conveyancer.

For a property of $500,000, the total applicable government costs would be $1,379.90 and you would be entitled to a grant of $20,000 if you’re buying a brand new property or building a house.

If you’re buying a new property or building a home for the first time, you may be eligible for additional concessions or grants.

To find out which lenders can give you the higher amount to borrow, please contact one of our mortgage brokers by filling in our free assessment form or by calling us on 1300 889 743.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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