hi everyone,
Im just wondering what fees are involved in the purchase of my first house? I know banks like you to save around 10% of to house value but what other fees do i need to save for? Im guessing the fees dont get included in the loan, i would rather have all fees saved. I dont wanna get all excited i have a deposit then to find out i will need $15000 for fees!
thanks in advance,
CassHi Cass
You will possibly get away with 5% deposit as long as everything is ok such as credit and employment history.
Depending on what State you are you might qualify for a concession on the Stamp Duty so best to check the OSR in your State.
Anything over an 80% loan to valuation will be mortgage insured and depending on the loan amount and the actual loan to valuation ratio this could be upto 2.5% (even more on a loan over $500K) of the loan amount. This is a one off premium deducted from the settlement funds to protect the lender only in the event of default on your behalf.
So that takes us to at least 7.5% of the purchase price.
Then you will have the costs of your Solicitor in acting for the conveyance as well as the State Government charges in relation to the Mortgage Registration, Transfer and Discharge (if applicable) as well as Title search and other adjusted costs scuh as Rates etc.
Dont foget if you are quick you will still receive the FHOG Boost so this will help defray some of the costs.
In saying this lenders still require you to save 3% of the purchase price over a 3 month period through genuine savings.
Richard Taylor | Australia's leading private lender
Hi cass,
What State are you in? For a First Home Buyer, stamp duty varies from state to state so depending on your state depends on how much in fees you will have to pay
in nsw, but looking at buying either ACT or nsw, thanks richard i wanna get in before this grant finishes but i dont think enough money will be saved by then
Hi Cass
What sort of purchase price are you looking at.
With the Grant being what it is depending on the purchase price you maybe ok.
A couple of products out there that will do 95% plus LMI with no genuine savings requirement.
Richard Taylor | Australia's leading private lender
well the first house we purchase we will only live in for as little as possible it will just be an investment property is our aim. we r looking at spending about 200,000 or less if possible for a unit or something similar nothing too flash something just requires a bit of work to look nice. we have $12000 saved at the moment with about $500 being saved every week towards it as well.
Hi Cass
Well that would appear to be enough with certain lenders especially given the additional FHOG you would receive.
Of course assume serviceability is ok and the other credit bits.
Richard Taylor | Australia's leading private lender
In NSW provided neither of you have owned a property before yous hould be eligible for stamp duty exemptions
Crosby Above is spam for sure, i have reported abuse…..
Hi Cass,
If you pay a deposit more than 5% this sometimes qualifies for the genuine savings(or does not require the bank to prove savings)….
So if you were borrowing money(from personal loan, family etc) for settlement and paying it back with the FHOG and stamp duty concessions(on settlement or shortly after) it could be a way of getting over the line. I will freely admit saving up for a deposit is hard work!
Lots of clients have used this strategy. Works well.
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