Plan ahead: The very first important step on the property path is about more than managing home loan repayments. It’s better to find out the cost comes along buying your first home. There are some of the main ones you should prepare for.
Generally a deposit is required when you are getting a home loan. It varies from lender to lender and individual’s circumstances. There are some lenders who can lend more than others, if your circumstances are falling in their lending policies.
When you are buying your first home, you must pay land transfer duty (previously known as stamp duty) on the transfer of the land from one individual to another. The amount of duty depends on the value of your property, how you use it, if you are a foreign purchaser, and if you are eligible for any exemptions or concessions.
The good news for first home buyers is that — in addition to the First Home Owner Grant- you may be entitled to valuable savings on stamp duty.
Some lenders allow first home buyers to borrow money to cover the cost of stamp duty. If this sounds like you, it might be a good idea to talk through options with Ok Loans expert.
Lender Mortgage fee
Banks charge a lending risk fee known as lender mortgage fee. You might be required to pay a fee, like LMI, if you are unable to put down a deposit of at least 20% of the property purchase price
Mortgage protection insurance
Home is one of the biggest financial asset, so it worth protecting your ability to keep up with loan repayments through mortgage protection insurance. MPI covers your ability to meet your loan repayments if you get sick or lose your job.
The process of transferring a property into individual’s name called conveyancing, therefore when you buy your first home, the property will need to be transferred into your name which comes along some legal expertise cost.
you might want to think about paying a conveyancer or a solicitor for reviewing the contract of sale for you before signing it. — the expense is worth for having a peace of mind. Conveyancing costs can vary, so think about shopping around and enquire about the fee before you commit to using a particular conveyancing firm or solicitor.
You’re going to need help moving all your stuff into your new home, whether you have just the barebones or a full home worth of furniture. The cost of moving can range from hiring a DIY ute, to paying for a professional removalist service.
Have a good look at what you have, how much you need and what you can do yourself when budgeting for removal. It can also help to compare prices between a few removalists to help get a good deal.
Property owners pay council and water rates to the state government, so they vary depending on where you live. Think of these fees as your contribution to the upkeep of your neighbourhood.
Connection and utilities bill
Having gas, electricity and internet services connected on the day you move makes settling in a breeze. Remember, electricity charges can be based on your home’s location, so this could be an opportunity to select a new plan and potentially save on power bills.
Pest and building inspections
The last thing you need is to buy a home with dodgy building work or a serious pest problem. In addition to doing your own inspections before purchasing a home, you should organise a professional pre-purchase pest and building inspection.
To find a service near you, search for “pest and building inspections”, seek reviews and contact a couple of providers to compare prices.
We are here to help you :
Once you have a list of all the costs associated with buying your first home, you have a better idea of how much to set aside to start living comfortably in your new place.
We’re not about how you can fit into pre-programmed bank criteria, we’re about doing our best to provide you flexible home loan products – to fit you.
Buying a home involves a lot of thinking and planning, which, can be a little bit overwhelming. That’s why we’ve made sure the process here is as simple and streamlined as possible. To make it easy for you.
The good news is, here at Ok Loan we understands the home buying process and can help answer your questions. Give us a call today and let’s see how we can help you click here.
Disclaimer: It is designed for publication, to provide you with factual information only, and it is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, This is not accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call us on 0431579459.