There are quite a few costs involved in purchasing a property. You need to factor in these costs when you are saving for your deposit.
The major costs include:
- Stamp Duty – this is the biggest expenses and varies according the purchase type (investment / owner occupied) and the value of the property being purchased. If you are a first home buyer then you may be eligible to not pay stamp duty
- Legal Fee’s / Conveyancing Costs – Range usually from $1,200 – $2,000. Your conveyancer plays a very important role in the purchase so do not just choose based on the cheapest as you can get what you pay for. We have a list of conveyancers we can recommend if you are unsure
- Lender Fee’s – some lenders have annual fee’s or application fee’s that need to be paid at settlement. Generally these are under $500
- Adjustment Costs – At settlement there will be adjustments for rates / water / strata the previous owner has paid. Your conveyancer will let you know before settlement
Lenders Mortgage Insurance (LMI)– if the loan is above 80% then you will be liable for LMI. This is added to the loan so it does not come out of your pocket.