What will it really cost to own my own home?
Many of us have no idea what the real costs are associated with purchasing a new home, but when you know what to expect you can plan ahead and budget for them so that when you find the right house, there will be no hidden surprises.
A general rule of thumb is that all the additional cost’s you’ll have to pay upfront to buy a new home will be around 5% of the purchase price. What this means is that if your home costs $300,000, you can expect to pay an extra $15,000 or so in various expenses. Some of those expenses are as follows:
CONVEYANCER - These guys are responsible for the transfer of the right of ownership of a property from the seller to the buyer. Approximate cost should be around $1,000, which includes adjustments to rates.
STAMP DUTY ON THE PURCHASE - This is a State Government Tax and varies from state to state. Usually the largest of all extra costs, the amount is calculated on the purchase price. For an estimate on how much Stamp Duty you will need to pay call us on 1300 736 664.
STAMP DUTY ON THE MORTGAGE - This is only charged in some states and may be waived if your a first home buyer. It’s calculated on the loan amount you need to borrow.
LAND TRANSFER REGISTRATION FEE - This is another State Government Fee and covers the transfer of title from the vendor’s name to yours. The rate varies from state to state and is based on the purchase price.
MORTGAGE REGISTRATION FEE - Another cost you will have, courtesy of the State Government and is a charge to register your mortgage documents.
Additional costs to also keep in mind are:-
LOAN APPLICATION FEE
INDEPENDENT VALUATION
PEST/BUILDING INSPECTION
To give you an idea of how these fee’s can add to the initial costs of your new home based on a purchase price of $300,000 and a loan amount of $240,000 in South Australia, you can expect to pay $14,057.50.
For more information on any of the above regarding purchase costs please call the friendly team at Fairway Homeloans on 1300 736 664 or email us at info@fhl.net.au.
Fairway Homeloans - for all your mortgage needs.
Tags: Add new tag