There are a lot of costs associated with buying a property. Fees and duties, taxes and insurances, and of course the cost of moving home, really start to add up. Here’s more information about all major costs to help you to work out your budget.
Loan application fee is also called establishment fee, payable to your lender for processing your loan. This fee varies from lender to lender, but is generally under $750 and is usually waived off under certain circumstances.
Your lender will arrange a valuation of the property to assess its value – it could range between $250 - $400 for valuation by an accredited valuer, though you should note that some properties attract higher fees. Valuation fee is also waived off under certain circumstances.
As the term suggests, this fee is to protect the lender. In case you fail to pay your loan and the property has to be sold, but the money realised from it does not cover the loan, mortgage insurance covers the lender’s risk. Mortgage insurance is usually required if you are borrowing more than 80 per cent of the property value. It is a one-off fee and is calculated on a sliding scale, depending on the loan amount and ratio, and can be quite high in some cases.
This tax is payable to the Government on most property purchases. The amount varies from state to state, and also depends on the value of the property.
This fee depends on the size of your loan and varies from state to state. There have been times when some state governments have waived off mortgage stamp duty for a limited time but it should be an expected expense.
This is a charge made by the Government to register your mortgage document.
GST does not apply to all the properties, only to those built after 1 July 2000, and to new house and land packages. Some buying costs attract GST, such as conveyancing and solicitor's fees, valuation fees and moving costs, but the tax will be included in their invoices. Please note - you won’t have to pay GST on a pre-owned property, and it doesn’t apply to your loan repayments, bank charges, residential rents or council and water rates.
Solicitors and conveyancers provide a valuable service during the sale of a property. Fees for solicitors and conveyancers vary from state to state, and most of these professionals will decide on the fee after studying your documents. The fees should include checking the contract, carrying out searches, and generally making sure that the transaction goes smoothly.
Inspection generally covers the building, structure and other matters that may need addressing before you move into the new property. Having your property inspected is an important element of the buying process. Costs will depend on the size and condition of the property, and ease of access to concealed areas.
The cost of moving depends on many factors, including the amount of goods, the distance you are moving, and ease of access of both the current and new premises. Like most cases, is advisable to get three or four estimates, and don’t forget to ask about insurance – usually a percentage of the value of your goods – since breakages can be a possibility.
"Singh Sahib, Thanks for everything. Really appreciate your wonderful support and help."
N & V Kaushik
"I would like to place on record my sincere appreciation of the way you have explained loan eligibility criteria, terms and conditions and other related information. Your passion, sincerity and commitment are highly appreciated. I understand my daughters,are already in touch with you. We are earnestly happy and confident in processing complete bank loan through you company. I am gratified to hear that you obtained loan sanctioned accurately on day as promised. Your cordial behavior and prompt response are highly appreciated."
"Sewa and Ajay were outstanding. My partner and I didn't really know what was involved when it came to purchasing our first home. There are so many things to consider and so many things to remember and it all became quite overwhelming. We were then recommended to talk to Sewa and Ajay and we immediately felt at ease and as though we had someone on our side. Their dedication to us and their patience was nothing short of amazing. No question was too silly for them to answer. We felt cared for and confident as they guided us through the process and looked after us every step of the way. We are now very happy home owners and couldn't be more grateful to the team at Reliiance Financial Solutions. They go above and beyond to look after their clients."
K McGrory & C Moon
"I like to thank you so much for your help with the setup of our loans, the way you had structured it is working really well for us.... couldn’t have done it without your help, you have made it so easy and your attention to details is next to none! You guys have been very prompt and responsive towards all my queries and requests... we really appreciate your hard work, well done!"
C La & S Ha
"Thank you very much for the efforts you have made to wave out annual fee on my mortgage . And refinancing my properties. Great job, may God bless you to give more strength to help the community ."
"We would like to take this opportunity to thank you for helping us in buying our first home. You have been very enthusiastic, helpful and honest in our dealings during the whole buying process. You cleared all our doubts and answered all our questions about the loan process and made us feel at ease. We are very happy with the loan options and thanks for getting us a great deal. As a first home buyer we didn’t know anything about property buying and you explained us everything which eventually led us to buy the property. We will surely recommend you to all our friends and relatives. Thanks once again and keep up the good work."
K & H Garg
"On behalf of my family, I would like to thank you for sparing so much time, during my last Sydney visit. I really appreciate the fact that you heard us carefully and advised us diligently while sharing your expertise and insight about real estate investments nitty-gritty. You are clearly enthusiastic about your work and it was encouraging to understand your approach to sharing facts/ experiences that felt me feel lucky meeting you timely.
We wish you Grand Good Luck and Thunder Fortune for all your future ventures, and hope to meet with you again."
"Its a pleasure to know someone like you. A sincere and kind friend like you is hard to find. You undoubtedly have been a part of our life for a long time. We always look towards you for any professional and financial advise and have always felt that you have helped us beyond the call of your duty. I just want you to know that all these little favours that you have extended have not gone unnoticed by us. We are very much aware of your extended help and support. Thanks once again for being there when we needed you."
G & R Handa
"This is in regards to my current loan transfers, setting these loan account and getting a very good discount for my loans. You have done a tremendous job. I am really benefited with your service. You have very good knowledge about the different banks and their loan structure. You also have a good reputation with these Banks(lending team). A senior BDM from lending team where my loans are, has very good regards for you and for your professionalism. I highly recommend you and your company for home and business loans."
"We wanted to thank you very much wholeheartedly once again for all your support, guidance and assistance in getting us a loan to purchase our first home. We really appreciate all the time and effort you put in for us and that you continually went above and beyond. We are thoroughly enjoying being the new owners and love our house."
F Rappoport & T Wells
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