Can I use a mortgage to pay upfront expenses?

Sorry another newbie question. 

I calculated that I have just enough for a deposit on a $300k house but what other expenses do I consider?  I already know of stamp duty, mortgage registration fees, transfer fee and I worked out with an online calculator that costs around $10,066 for QLD. But what about other fees council fees, agent's fees etc and roughly how much does this cost? Another thing I really want to know is, if I don't have enough to pay for all other expenses can I use the mortgage to pay for this?

Mortgage Insurance is another cost if LVR is >80%
Solicitor Fees or conveyancor fee

Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

G'day Soohoo,

Other expenses include any building inspection fees, a balancing of council rates payments and termite inspection as well as duckster's mention of mortgage insurance.

Unfortunately, you can't use your mortgage to pay for this. The max your loan can be is usually 95% of the property value so you can't borrow 95% and then ask for a bit more to cover fees. If you're a First Home Owner the grant will more than cover most fees except for Mortgage Insurance which is the only exception to this rule - some banks will allow you to "capitalise" the mortgage insurance onto the loan amount.

Hope that helps!

Matt.

Matt McCombe,
Home Loan Specialist
Extreme Mortgages and Finance
matt@extrememortgages.com.au
www.extrememortgages.com.au

I am impressed that you are thinking like an investor on your first property. I like that you do not want to use your own money.

www.birchcorp.com.au

jshooo

Will this purchase be an owner occupied property or investment ?

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

jshooo

Will this purchase be an owner occupied property or investment ?

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

Hi Richard,

This is for an investment.

Sorry I should also add, because this is my first property and the fact that I'm looking at 90% LVR..