|
Once you’ve arrived at a ballpark figure for your potential purchase price, you will need to take into account the other charges that will apply to your purchase.
One of the biggest initial outlays you will have is the deposit, which is usually 10% of the purchase price. You should also allow additional funds (approximately 5%) for the taxes, legal costs and insurance associated with buying a property. These are detailed below:
The
Home Loan Fee Calculator
can help you to determine all of the costs associated with buying or
refinancing a property. It calculates the full loan amount needed
to complete your property transaction.
When you buy land in any state of Australia, which may include
buildings, you are liable to pay stamp duty to the government. The
amount varies between each state.
The stamp duty payable, is based on the market value of the property
or the purchase price, whichever is the greater. Exemptions and
concessions may apply in some circumstances. Check with your
solicitor/conveyancer to see if you are eligible.
Mortgage documents taken in Australia attract stamp duty to make
them legal documents. This stamp duty is usually paid to the
applicable state authority on your behalf by your lender. In some
states this duty does not apply if you are refinancing. The amount
payable is determined by the size of the loan and varies in each state.
Whenever a property changes hands, a document known as a Transfer of
Land is lodged and registered with the appropriate State Titles Office.
This document records the change of ownership. The cost to register the
title varies in each State/Territory. Your solicitor/conveyancer will
usually perform this task on your behalf.
In addition to the registration fee payable on the land transfer, there
is also a government charge to register the mortgage document. This
charge is usually paid to the applicable state authority on your behalf
by your lender.
Whenever a property changes ownership or is refinanced, a search of the
Certificate of Title is obtained from the Titles Office. This is to
check if there are any encumbrances on the title (an encumbrance would
include things like mortgages, caveats, restrictive covenants etc.).
This search is also used to check that the details on the Certificate
of Title are correct. The cost of the search varies in each
State/Territory and is usually paid on your behalf by your
solicitor/conveyancer or your lender.
 |
|
|
You are able to act on your own behalf when purchasing a property,
however, the documentation and settlement process can be quite
complicated and includes many legal issues. Buying a home is often
the biggest purchase you will ever make and it is strongly recommended
that you acquire the services of a solicitor or conveyancer, who are
experts in this area, to ensure that everything runs smoothly and is
completed correctly. Fees for solicitors and conveyancers vary from
state to state, and depend on the amount of time and work that is
required.
Most lenders charge a Loan Approval Fee. ANZ’s Loan Approval Fee for most
products is $500 (less any discounts you may be eligible for). The ANZ Loan
Approval Fee is a single up front fee, payable once only and includes
documentation, search costs, loan approval, and loan processing.
Lenders Mortgage Insurance (LMI) is a payment made by the borrower
that protects the lender in the unlikely case that a borrower defaults
and a loss is evident after the mortgaged property is sold.
ANZ usually requires Lenders Mortgage Insurance when the loan amount
is greater than 80% of the property’s value. This is commonly referred
to as the Loan to Value Ratio (LVR). LMI may be required when the LVR
is below 80% for some types of property. LMI is payable once only at
the commencement of the loan and protects ANZ for the life of the loan. For more information on when LMI is required please call .
LMI is provided by an underwriter external to ANZ. The premiums are
determined by the underwriter based on the amount of the loan and the
Loan to Valuation Ratio.
|
top