When buying your first home do your research regarding the different home loans available, keep in mind their will be government fees and you will need insurance.
If you are about to buy your first home then you will soon discover that there are a lot of unexpected costs that you should be aware of. As well as the cost of the builder there are a number of government fees and taxes, legal expenses and home and contents insurance that you will have to cover. You will also need to shop for certain appliances that need to be installed during the final building stages such as a stove and a Bosch dishwasher.
Don’t settle on the first home loan offered to you if it isn’t right for you. There are many different types of home loans available and you will find that some will suit your circumstances better than others. There are also different fees associated with them and, the variation will depend on your lender. There are some home loans that are quite basic but these tend to be ones that have a lot of different fees associated with them and you will also find that there is little flexibility. You will also find that if you need to draw down on the loan you will be charged high fees. It is important to work out what home loan is best for you as you will have your mortgage repayments and lender fees, so you do need to do a lot of research before hand.
Government fees and stamp duty
Unfortunately there are unavoidable government fees, including registration fees in regards to land transfers. There are also government taxes. You will find that some of these fees are set at a fixed rate and others vary depending on the value of your land. You will also have to pay Stamp Duty which will vary within the different states and territories of Australia. Stamp Duty can increase the cost of your property quite significantly so find out from your state government as to what these costs will be so you can budget for them and include it in the amount of money you borrow from the bank.
You will find that mortgage protection insurance is compulsory for some loans which will cover you if for some reason you can’t cover your loan repayments. The cost of this insurance will vary between lenders but it is important to have it. You will also need to have building insurance otherwise the builders, as well as the banks, will not allow the construction of your home to go ahead.
When you buy or build a new home it is important that inspections are carried out. There will be inspections carried on the quality of the building itself, as well as inspections of the electrical wiring and to check to see if there are any pests in an older home, like termites. You will need to find out how much these inspections costs, what there are exactly and include these in your budget.Google+