Budget For All The Costs Of Buying Property

Most people might think that the only thing they need to do before embarking on their house hunt is to save a home loan deposit.

While it’s true that this is a significant part of the ‘price of admission’ to property ownership, potential home buyers should keep in mind that there are other costs involved in home buying.

Mortgage costs

In addition to the deposit requirement, there is the home loan application fee, mortgage registration and stamp duty costs.

If you don’t have a deposit that is 20 per cent of the purchase price, lenders can require you to take out Lenders Mortgage Insurance.

Lenders may also require you to pay for a property valuation to be performed by a third party chosen by them.

Property costs

Before buying a property it is highly recommended to engage an expert to do a building inspection, and a pest inspection where necessary.

In addition, there are legal fees for the land transfer, council rates, home and contents insurance, and the costs of connecting utilities like electricity, gas, phone and internet lines.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today.