What is Stamp Duty and how can I calculate fees accurately?
When buying a home, there are a lot of costs you may not know about. These include stamp duty, insurance, lender’s fees, inspection costs, legal fees, moving costs and estate agent fees.
Calculating Stamp Duty for home loans
When you buy a home in Australia, the government impose a stamp duty tax. The tax is added to the purchase price of your home and is assessed on the sale price of the property. Stamp duty varies from state to state. To check exactly how much stamp duty you will have to pay on your home loan, be sure to use this online stamp duty calculator.
If you are a first home buyer you might eligible for assistance grants or a stamp duty concession. Check the links on this page for the respective state’s information. Keep in mind that there are more costs to buying a home than just stamp duty and the cost of the house. Loan application fee and mortgage insurance add to the cost of the home loan. For a loan of $300,000 approximately $17,000 will be spent on additional fees.
Mortgage insurance for home loans
When you are buying a home and want to apply for a home loan, you are required to pay a deposit. The deposit is usually between 5% and 20% of the property’s value. If you borrow more than 80% of the property’s value lenders, usually require you to obtain Lenders Mortgage Insurance (LMI). This protects the lender in the event that you stop making repayments. You might be asking yourself how this benefits the borrower? The answer is that you get a chance to borrow sooner with a smaller deposit.
Lender’s fees when establishing a home loan
All lenders usually have some form of one-time fee when establishing a home loan. Be sure to check with your lender.
Inspection costs before purchasing a home loan
It is usually good thinking that before you purchase a property, you arrange for building and pest inspections to avoid nasty little surprises when you move in. Be sure to get a few quotes from various suppliers.
Legal fees for home loans
When you buy a home, you need a legal transfer of the title or ownership. This is known as conveyancing and the service is provided by legal offices, estate agents or professional conveyancers . There are also do-it-yourself kits if you are trying to save money.
Moving costs and estate agent fees
These depend mainly on location so check local listings or the Internet for actual costs.
Now you know the different costs that include when buying a home, you may wish to apply with eChoice today to receive great rates on your mortgage.
You may be eligible for the Federal Government First Home Owner Scheme (FHOS) or stamp duty concessions. For more information:
* NSW – http://www.osr.nsw.gov.au
* QLD – http://www.osr.qld.gov.au
* TAS – http://www.treasury.tas.gov.au
* VIC – http://www.sro.vic.gov.au
* WA – http://www.dtf.wa.gov.au