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Costs of buying your home
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:
- Stamp duty on a property purchase
- Stamp duty on a mortgage
- Registration fees on a property purchase
- Registration fees on a mortgage
- Title search
- Solicitors / conveyancers
- Loan Approval Fee
- Lenders Mortgage Insurance (LMI)
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.
Stamp duty on a property purchase
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.
topMortgage 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.
Registration fees on a property purchase
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.
Registration fees on a mortgage
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)
Lenders Mortgage Insurance (LMI) is a form of insurance that is used to protect ANZ against financial loss when a borrower defaults and a shortfall arises following the sale of the security property. The premium is paid by the borrower and protects ANZ in the unlikely case that a loss is evident after the mortgaged property is sold.
The premium for LMI is payable once only at the commencement of the loan and protects ANZ for the life of the loan. The premiums are determined based on the amount of the loan and the Loan to Valuation Ratio.
ANZ usually requires Lenders Mortgage Insurance whenever the Loan to Valuation Ratio (LVR) is above 80%. LMI may be required when LVR is below 80% for some types of property. For more information on when LMI is required please contact ANZ.
The ANZ Home Loan Fee Calculator will determine whether you need to pay LMI (in most cases) and the amount payable. The LMI premium can usually be financed into the home loan, upto a maximum of 90% of the security property value. LMI is not available on ANZ Home Equity Loans.
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ANZ's colour blue is a trade mark of ANZ. Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you.
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