What Are the Costs of Buying a Home?

When considering buying your new home in the South West, there are some additional expenses above and beyond the purchase price you need to take into account to accurately determine how much you can afford to borrow.

The Deposit

Generally, you will need to save a minimum deposit of 5-10% of the value of the property (this will vary between lenders) before a financial institution will agree to lend you the balance. Having a deposit of 20% is preferred by banks and saves you the cost and paperwork of mortgage insurance.

Government Stamp Duties

Approximately 5% of purchase price.

Loan Establishment Fees

Banks will sometimes charge a fee for the work involved in establishing a loan, however, many banks may waive establishment fees, especially if you have other business with them, or if they are competing for new customers.

First home buyers bonus

For first home buyers, some of the financial outlay can be reduced by the Government's First Home Owners' Scheme. Approved first-time buyers receive $7,000 for an established home or new home. If you spend under $135,000 you may get some reduction on your Government stamp duty as well.

Legal fees, Rates and Assessments

Settlement agents fees plus the cost of title searches, transfer fees and so forth make up the other component of your buying costs. These fees are subject to a regulatory scale, but most settlement agents will provide a quote if you ask them.

Building Inspections and Pest Inspections

Any other inspections you want done as part of your subject-to clauses will need to be paid by you. Building inspections range from $300 to $400 and termite inspections are around $100 to $200.

Moving costs and insurance

The cost of moving your furniture from your current location to your new home needs to be considered as well. Arrange a few quotes and ensure that you are confident your possessions will not be damaged in transit. You will also have the standard things to consider such as disconnection and reconnection of services including power, water, insurance and re-direction of mail.

Time and energy

The time and energy you have available to expend in the process of buying a home is an important factor to consider.

The average buyer devotes many hours to finding  'the' home.  This includes attending home opens, following prices in the area and learning to recognise what a property is worth.

Many people who have searched for a home can tell you how exhausting and frustrating this process can be. We understand this and work our hardest to find the right home for you, making the whole experience more enjoyable..

To save time, try our calculators section for more information about the costs involved with purchasing your new home.