Cost Of Home Purchase, First Home Owners - Honey Loans

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Cost Of Home Purchase

Once you have decided on a figure for your potential purchase price, you will need to take into account the other charges that will apply to your purchase. The sum you'll actually spend on buying your home can be thousands of dollars higher than the purchase price. Taking these costs into account in advance is a good idea.

Stamp Duty On Purchase
Stamp Duty On Mortgage
Registration fees on a property purchase
Loan Application Fee
Mortgage Registration Fees
Title Search Fees
Solicitor or Conveyancer fees
Lenders Mortgage Insurance

Stamp Duty On Purchase
When you purchase real estate in any state of Australia, you are liable to pay stamp duty based on the market value of your purchase. The amount varies between each state. Exemptions and concessions may apply in some circumstances. Some States Offer full or partial exceptions on this costs to First Home Buyers. Check with your solicitor/conveyancer to see if you are eligible.

Stamp Duty On Mortgage
Mortgage documents taken in Australia attract stamp duty to make them legal documents. This stamp duty is usually paid to the applicable state authority on your behalf by your lender. In some states this duty does not apply if you are refinancing. The amount payable is determined by the size of the loan and varies in each state.

Registration fees on a property purchase
Whenever a property changes hands, a document known as a Transfer of Land is lodged and registered with the appropriate State Titles Office. This document records the change of ownership. The cost to register the title varies in each State/Territory. Your solicitor/conveyancer will usually perform this task on your behalf.

Loan Application Fee
Many Lenders charge an application fee in order to consider your home loan application. Some Lenders run specials where the application fee is waived or discounted. The amount of your application fee, and whether a fee is applicable at all, may depend on your credit history and the strength of your loan application.

Mortgage Registration Fees
In addition to the registration fee payable on the land transfer, there is also a government charge to register the mortgage document. This charge is usually paid to the applicable state authority on your behalf by your lender.

Title Search Fees
Whenever a property changes ownership or is refinanced, a search of the Certificate of Title is obtained from the Titles Office. This is to check if there are any encumbrances on the title. This is a fairly small fee and is paid on your behalf by your conveyancer.

Solicitor or Conveyancer fees
You are able to act on your own behalf when purchasing a property, however, the documentation and settlement process can be quite complicated and includes many legal issues. Buying a home is often the biggest purchase you will ever make and it is strongly recommended that you acquire the services of a solicitor or conveyancer, who are experts in this area, to ensure that everything runs smoothly and is completed correctly. This fee can range from several hundred to over a thousand dollars depending on the firm you choose and the complexity of your purchase.

Lenders Mortgage Insurance
Lender Mortgage Insurance is a form of insurance that is used to protect the lender against financial loss when a borrower defaults and a shortfall arises following the sale of the security property. The premium is paid by the borrower where the mortgage is over 80% of your purchase price and can range between 0.5% and 3% of your loan amount. LMI can be applicable to loans under 80% in some circumstances.

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