When you’re a first home buyer, your main concern is to focus on the biggest expense that you have to bear- the value of the property. But, while preparing your budget, it is also important to look at the additional costs that come with the purchase of a new home. Some of those include:
Fee like home loan application fee that covers administration costs.
The market valuation of the property which tends to change from one lender to another and is sometimes included in the loan application fee.
Monthly administrative charges that you have to bear once your loan has been approved and which is likely to be included in the repayments.
Taxes like the stamp duty levied by the states and territories on the purchase of a property by a first home buyer. The amount to be paid changes across the different states and territories.
Lenders Mortgage Insurance. This protects the bank on the off-chance you default on your loan before you've had a chance to build up your equity. Generally you'll have to take out this insurance if you have a smaller-than-usual deposit as you'll be considered a bigger risk.
There are a few costs you incur while you are moving, which includes: the fee for the movers, car hiring, cleaners, painters, etc.
The cost of building and pest inspections before you move in, to ensure that the building is safe to reside in.
The fee of solicitors and conveyancers to prepare the documents and help you with the purchase of the house.
If you’re a first home buyer unaware of these costs, you can connect with us and we will help you analyse your budget.
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