How much deposit do I need in Gladstone?
Depending on who you are talking to, the answer can vary quite drastically. I have heard anywhere from 5% to 30%.
It is important to verify the source of the information. If I had a penny for every time I heard ‘But my mate said’
In the same way that I wouldn’t rely on my real estate agent to know what is wrong with my car, you shouldn’t rely on anyone other than a licenced mortgage broker to advise you on your home loan options.
I can verify that it is within some lender's policy in Gladstone to purchase with as little as a 5% deposit.
However even this figure is misleading. It fails to take into account the additional upfront costs associated with a property transaction.
There are quite a few costs associated with your purchase:-
These costs can vary quite drastically depending on the firm you employ and the departmental searches that your legal representative performs on your behalf. However I always advise allowing for $1,950 for their services and search costs.
Building and Pest inspections
Again, these costs can vary depending on which of the local businesses you task this to. My advice is to allow $550 for these reports.
Lender application fees
Loan application fees can vary from NIL to $1,950, however generally don’t exceed $200. Even then, it is more common to have a NIL application fee.
Transfer duty formerly known as stamp duty varies depending on your circumstances and the purchase price. If you are eligible for the first home owner concession than your transfer duty may be NIL, however there is still
a Transfer fee and a mortgage registration fee payable. As these can vary depending on the purchase price.
A rates adjustment is a reimbursement to the seller for the council rates that they have paid, annualised over the period in which you will have possession of the property. Gladstone’s rates notices are issued in August, as a result from this time of year there is a higher cost to this adjustment. You can confirm the rates costs with the listing agent, I like to allow for at least $3,000 this time of year.
Lender’s Mortgage Insurance
Or LMI, is a risk insurance payable by you to protect the banks in case you default. This insurance provides you with no direct protections or benefits. Generally LMI is payable when you have less than 20% deposit. There are fewer lenders allowing this to be added on to the top of your loan, however there are still those out there that will allow it.
As a Loan Market mortgage broker we can offer you complimentary, obligation free sessions where we can calculate all of the above for you and determine your maximum borrowing potential.
To start your home buying journey complete the enquiry form to the right.