Hi Guys,
I'm new to this forum but it appears to be very informative!
Here is my situation and i hope someone can help?
I have just bought property 3, which we are moving into on August 14th 2009. I used an exisiting property to full finance.
Anyway, the property i have bought was purchased for $280k. My broker said, let's borrow $295k and allow for approx $15k in fees etc.
That was fine by me as it was a good buy, but I've now just picked my mortgage documents up from Westpac and the figures are as follows:
Mortgage insurance: $5386.59Registration charges: $995.20Stamping Charges $11,870.00Bank Cheque Issuance Fee: $10.00Loan Establishment Fee: $600.00 Total: $18,861.79
So long story short, $280k purchase price, plus the $18.k fees now means that seeing while the broker aplied to Westpac for only $295k, the above fees on settlement now mean i'm $3.8k over my budget???So my question is… Do i need to find that $3.8k in cash to make this happen on settlement day???
I'm further confused as my conveyancor has told me previously that i'll probably get discounts on my Stamp Duty as its my PPR (Principle Place of Residence). Plus my partner is on a health care concession card which means further discounts as well… he couldnt tell me exactly, but i've just filled in and posted back to him the documents for these discounts
So, can i assume that the above $18.8k figure might reduce if these discounts come across… and if i do get these discounts, does it just mean that its less to pay on settlement?
What i really want to know is… westpac have offered me my mortgage and outlined my monthly repayments etc on $295k… which is fine as what we allocated… but if the fees come in less with my discounts, say $293k total, does this get adjusted on settlement? Won't this mean that my monthly repayments change too… all again, if i get these discounts, what Westpac are indicating isn't right???
Should my conveyancor be helping me with this?
If anyone could shed some light… i feel a bit lost…
Thanks
John
disc from using health care concession card… never heard about it..
Sounds like your broker has just cross collateralised the loan over the 2 properties and therefore you have no line of credit to access to cover any shortfall.
Unfortunately you will need to find the balance of funds yourself.
There is no concession on bank costs with a health card so you might be confused over the benefit here.
Richard Taylor | Australia's leading private lender
I don't think you can have reduced Stamp duty as you have previously owned "property"
energy4anarchy wrote:So my question is… Do i need to find that $3.8k in cash to make this happen on settlement day???Yes you do John
energy4anarchy wrote:…. i'll probably get discounts on my Stamp Duty as its my PPR (Principle Place of Residence).No – no such thing, unless its a peculiar state thing. Which state are you buying in?
energy4anarchy wrote:Plus my partner is on a health care concession card which means further discounts as well…Nope.
Thanks Guys for your replies… you all seem very knowledgeable!
I should clarify a couple of things… First off, this is in Victoria!
Secondly – i didnt mean "discount" in fees from Westpac (I wish)… i was referring to government fees and in particular, the Stamp Duty.
I should also clarify that while i have purchased my previous two properties as a single, this 3rd property will be in mine and my partners name on the title. So for her, its her very first place.
My conveyancer sent me a document to sign, i forget exactly what it was called, but it was something about a concession as this place will by my principle place of residence. I had never seen it before and he said it was new i think, from May last year onwards or something?
I filled it out and my partner had another one to fill out seperatly, as her form was in relation to being on a Health Care Card.
My partner, who is on NO OTHER titles and this is her first place, is on a health care card. He informed me that she will receive an exemption. He said something about setting it up as "Tenants in common" or something. Being that i'll pay stamp duty on my part, she'll not on hers. So if stamp duty is 11k for example, its kind of split down the middle, $5500 each… but where i get a reduction of about $700 as its my PPR and because its her 1st place and because she has a Health Care Card, she gets a complete or majority exemption.
So, it should reduce OUR stampduty by 50% or there abouts?
http://www.dhs.vic.gov.au/concessions/entitlements/view-all/rates-and-property/stamp-duty
That's why i'm trying to figure out if i'll be paying $298k on settlement, or if i'll be paying around the $293 mark?
Which one of you experts can help??
http://www.dhs.vic.gov.au/concessions/entitlements/view-all/rates-and-property/stamp-duty
John,
You'll need to contact the Vic Office of State revenue http://www.sro.vic.gov.au/
To toss something else into the mix, if you are buying jointly you don't have to do it 50 – 50. You can buy 1% and your partner 99% – that might help (or not) with the stamp duty concession issue…..and it might create other issues with the lender and the mortgage insurer. Ask your solicitor/conveyancer.
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