Mortgage Brokers in Perth are used to all the extra fees involved in buying residential or investment property. We see them on a daily basis and know that they are part of the cost of doing business. Unfortunately, many first-home buyers are caught by surprise and fail to anticipate the full cost of buying a home.
When taking out a home loan for your Perth property, here are the usual extra fees and costs that you may run into.
To even take a loan application, most lenders require an upfront fee. Home loan application fees cover credit checks, property title checks and legal contracts.
Mortgage Costs and Fees
Lenders have to pay their employees for the work involved on their end, so they charge what is called a “mortgage establishment fee.”
A property valuation fee goes to the third party who assesses the value of the property.
A mortgage registration fee goes to the government when you register your mortgage deed.
The government also collects stamp duty when your mortgage is registered.
LMI, or Lenders Mortgage Insurance, is needed if you don’t have at least 20% of the purchase price for a down payment. Lenders “reason” that you are at a higher risk of defaulting on repayments if you don’t have 20% of the purchase price laying around.
Property Costs and Fees
Whenever ownership of a property is transferred, the government charges stamp duty. In addition, there is a fee to register the transaction at the Land Titles Office. To ensure a smooth transition, it is always recommended to pay a solicitor to handle the transaction as your advocate.
Before buying a property, you must have it checked for pests or structural problems; this requires a fee. You will need to insure your home and income protection insurance is recommended in case your income changes. In addition, couples should have life insurance to ensure that if one dies, the other isn’t out on the street.
There will also be costs for utilities, council rates for services such as garbage collection. You also need to figure an average monthly cost into your budget for maintaining your home.
Call (08) 9472 9766 we can help find the home loan that fits best for you.