All Topics / Help Needed! / First Property Closing costs?

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  • Profile photo of markymark84markymark84
    Member
    @markymark84
    Join Date: 2009
    Post Count: 10
    May 24, 2009 - 9:36 am

    Hi all,

    I am very new to the game and am trying to estimate roughly the costs in buying my first property.  I am eligble for the FHOG and also the Stamp Duty. Some people tell me that closing costs are roughly 5% of the full purchase price of the property, however with the SD discount in place, what is a better estimate.

    Ie on a $300,000 house?

    Your expertise will be greatly appreciated!!

    Thanks
    Mark

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 24, 2009 - 1:30 pm

    Closing costs certainly wont be anywhere near 5% of the purchase price but make sure they are not factoring in your deposit amount and also the loan costs / LMI.

    These of course could exceed 5% dependant on your borrowing amount and the LVR.

    More information required to provide a structured response.

    Richard Taylor | Australia's leading private lender

    Profile photo of markymark84markymark84
    Member
    @markymark84
    Join Date: 2009
    Post Count: 10
    May 24, 2009 - 8:43 pm

    Thanks Richard,

    We are looking at a property est $300,000 mark, which we are depositing around 30k ourselves, so a loan amount of $270,000, so I am assuming LMI applies as the LVR  will be around 90.

    Does this clarify?

    Thanks,

    Mark

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 24, 2009 - 10:39 pm

    Yes Mark LMI will apply given the LVR.

    Being under $300K at least the premium wont be an arm and a leg.

    Richard Taylor | Australia's leading private lender

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