Common Questions That Every First Home Buyer Asks

Common Questions That Every First Home Buyer Asks

HERE ARE THE QUESTIONS WE GET ASKED MOST OFTEN BY HOME BUYERS:

  • How much money can I borrow?

We’re all unique when it comes to our finances and borrowing needs. And different lenders lend very different amounts for your Home Loan. Even if your own bank won’t lend you the amount you want, do not assume other’s won’t.

Contact Brokers Zone anytime, We can help with calculations based on your circumstances, all over the phone.

  • How do I choose the loan that’s right for me?

Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available.

  • How much do I need for a deposit?

Usually between 5% – 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.

  • How much will regular repayments be?

Go to the Repayment Calculator on our website for an estimate. Because there so many different loan products, some with lower introductory rates.

 

 

mortgage Calculator

 

  • How often do I make home loan repayments – weekly, fortnightly or monthly?

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.

  • What fees/costs should I budget for?

There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:

 

home buying fees & costs

 

Stamp Duty

This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.

 

Legal/Conveyancing Fees

Generally around $1,000 – $1500, these fees cover all the legal rigor around your property purchase, including title searches.

 

Building Inspection

This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

 

Pest Inspection

Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

 

Lender Costs

Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. I will let you know what your lender charges but allow about $600 to $800.

 

Moving Costs

Don’t forget to factor in the cost of a removalist if you plan on using one.

 

Mortgage Insurance Costs

If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.

 

Ongoing Costs

You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.

 

It’s always better to educate yourself before taking any big decision while you are planning to buy a home. We know buying a home is your dream and very important decision of your life so we recommend you to visit an expert Mortgage Broker to get in-depth knowledge about home buying process.

Brokers Zone mortgage brokers are always there to meet with you and guide you through this entire home buying process.

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