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Securing a home loan

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Securing a home loan

Buying land and building a house costs more than just the purchase price. In addition to securing a home loan, it’s important for you to be aware of the other costs involved in buying a property – and budget for them accordingly. That way you’ll save yourself from any unpleasant surprises.

What extra costs should I budget for?

Here are some of the costs, fees and charges we recommend you consider.

1: Deposit

A deposit may be required. Different financial institutions have different requirements. Talk to your lender about options available to you.

2: Lenders’ Mortgage Insurance (LMI)

Required by the lender if you borrow more than 80% of the property value. The premium for LMI is payable once only.

3: Loan application fee

This is a standard upfront cost. The Fee covers:

  • Loan Application documentation
  • Legal fees
  • One standard valuation

4: Legal/Conveyancing

You’ll need to appoint a Conveyancer to complete all legal aspects of your contract for the purchase of your property. Fees for conveyancers may vary from State to State.

5: Government fees

Mortgage Stamp Duty and Land Transfer Fees are charges to officially lodge documents.

6: Home and contents insurance

Accidents don’t just happen to other people. Most lenders require Home and Contents Insurance to ensure your financial well-being.

  • Fire
  • Storm Damage
  • Burglary

7: Utility connections

It won’t be much of a dream home without electricity, gas and water. You will need to pay to have utilities connected or transferred.

8: Council rates

Ask your local council what fees apply.

9: Stamp duty

It’s critical that you budget for Purchase Stamp Duty as it is one of your largest expenses. Purchase Stamp Duty is based on the market value of your property or the purchase price, whichever is higher.

Charges vary from State to State. Your Settlement Agent or lender can tell you more.

What concessions are available?

1. First Home Owner Grant

If you are a first home buyer you may be eligible for the First Home Owner Grant. Each State and Territory has its own grant scheme and eligibility requirements.

Visit the website for more information firsthome.gov.au

2. Stamp duty concessions and exemptions

The different States and Territories offer a range of Stamp Duty concessions and exemptions for property buyers – including first home buyers. Visit your State’s website or talk to your AVID Property Group Sales Representative.

3. Renewable Energy Scheme incentives

For more information about the government’s new Small-scale Renewable Energy Scheme visit the RET Clean Energy Regulator website.

Talk to us – we’re always happy to help!

At AVID Property Group, while we are not financial advisors and we encourage our clients to seek independent loan advice, we can recommend local home lenders who have already helped many of our customers. If you would like a confidential and obligation-free advice and information about your lending options then talk to us any time. We’re always happy to help.

Disclaimer:

AVID Property Group gives no warranty and makes no representation as to the accuracy or sufficiency of any description, photograph, illustration or statement contained in this document and accepts no liability for any loss which may be suffered by any person who relies upon the information presented. All information provided is subject to change without notice and may be based on information provided by others. Dimensions, areas, layout, time periods and dates are approximate only. Photographs and illustrations in this document are indicative only and may not depict the actual development. The document is a guide and should not be considered legal, financial or other professional advice and you should seek appropriate advice before making a decision or taking any action based on anything contained in this document. This document contains only general information and cannot be relied on for the purpose of purchasing land or enter into a contract with a builder. A decision to purchase land, or to enter into a contract with a builder, should only be made after obtaining appropriate legal and financial advice. 20/3/17.

Updated on March 29, 2018

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