Keep Room In Your Budget For Home Loan Fees
When you’re planning for a mortgage it can be easy to only focus on the biggest expense - the value of the property.
It makes sense - home loans and deposit calculations will be largely determined by the house price but when preparing your finances it’s just as important to be aware of the additional fees which come with home borrowing, these could include:
Home loan application fees
These cover things like the administration costs.
Market valuation of the property
This can change from lender to lender and is sometimes included in the loan application fee.
Lenders Mortgage Insurance (LMI)
This is what protects the bank on the off-chance you default on your loan before you've had a chance to build up your equity. Generally you'll have to take out this insurance if you have a smaller-than-usual deposit (as you'll be considered a bigger risk).
Monthly administrative chargers
These occur once your loan has been approved and will most likely be added to your repayments.
This is the tax levied by all Aussie states and territories on the purchase of a property i.e when you buy your first home or investment property - stamp duty will be involved.
The amount of stamp duty changes from state to state, territory to territory and depends on a few factors like location, purchase price and property purpose.
There are a few costs to think about for your move in day, these include:
- Car hire if you’re moving furniture from place to place yourself
- You get the jist!
Building and pest inspections
Before you move into your new place, building and pest inspections will be done to ensure there aren’t any issues with the building itself and that there aren’t any pests lying around that could cause damage to your new home.
The legal stuff
During the home loan process, you’ll be using solicitors and conveyancers to prepare all the documentation required and be the contact for the bank and the person you’re purchasing your property from.
These fees and others will vary from lender to lender - a mortgage broker (like me!) can tell you which ones will apply to you and help you budget for them.
To get more detailed information on your situation, let’s talk!
This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.