Example A or Example B

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Myydral
Member
@myydral
Join Date: 2003
Post Count: 259
June 18, 2004 - 10:22 am
I am still unsure of what finance is required at the beginning of a property transaction in regards to Stamp Duty. I have two examples below, which one is correct ( or most correct ), and what can be fine tuned to correct any mistakes.
Example A
a = $200,000 ( purchase price )
b = $10,000 ( 5% deposit )
c = $6800 ( Stamp Duty in NT )
d = 6.79% ( Interest Rate )
e = 30 ( Loan term, years )
a minus b plus c is then used in calculating fortnightly repayments?
200,000 – 10,000 + 6800 = 196,800
196,000 at 6.79% over 30 years = $294.57 fortnight
Example B
a = $200,000 ( purchase price )
b = ( 5% deposit of a + c )
c = $6800 ( Stamp Duty in NT )
d = 6.79% ( Interest Rate )
e = 30 ( Loan term, years )
200,000 + 6800 = $206,800 becomes purchase price
5% deposit becomes $10,340
196460 at 6.79% over 30 years = $295.26 fortnight.
At what point are fees added? LMI and loan costs, are they added to the required deposit?
I am looking for an absolute deposit required ( so I can calculate on various prices ) and a per fortnight figure. I know a bit but not the intricate details.
Cheers
“Looking forward to the day when I can tell the boss where to go”
Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
June 18, 2004 - 10:59 am
Hi Myydral,
Here are my figures based on a $200.000 purchase in NT,
Value of property, $200.000
Transfer Stamp duty $6800
Mortgage stamp duty $5
Mortgage Registration $90
Land transfer registration $90
LVR (excluding LMI) 98.5%
Funds required, $206985
Your contribution $10.000
Loan amount $196985
LMI estimate $7138
Your final contribution $10.000 + $7138(LMI) = $17138
Fortnightly Repayments @ 6.79% P&I $590
If you capitalise the LMI your final LVR will be 102.1%
And the final loan amount will be $204.123
Fortnightly repayments @ 6.79 P&I $611
Hope this helps,
Regards
Steven
Mortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA
PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Myydral
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@myydral
Join Date: 2003
Post Count: 259
June 18, 2004 - 11:17 am
Thanks for that, explains things nicely
“Looking forward to the day when I can tell the boss where to go”
Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
June 18, 2004 - 1:40 pm
Hi Rob,
To clarify, Of course these figures are incorrect, I’m well aware you can not get 100% finance at 6.79%,
Myydral is not asking for information regarding LVR, lender rates & fees, credit history etc,
To keep my explanation uncomplicated, I quoted the same figures used by Myydral in his examples of A & B to answer his question on how to calculate the final loan figure,
I hope I haven’t confused Myydral,
Regards
Steven
Mortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA
PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Myydral
Member
@myydral
Join Date: 2003
Post Count: 259
June 19, 2004 - 5:56 am
Thanks for the replies, this one is a bit late as the computer at work doesn’t like me at the moment.
Yes, I do now about loan costs etc, it was just when to add the stamp duty that got me.
“Looking forward to the day when I can tell the boss where to go”
Myydral
Member
@myydral
Join Date: 2003
Post Count: 259
June 19, 2004 - 6:25 am
Thankyou, that first statement pretty much covers everything that I have been wondering
“Looking forward to the day when I can tell the boss where to go”