What Costs Are Involved In Buying Your First Home?

Sunday 06 Sep 2020

When you're buying your first home, there are a range of costs you need to have on your radar, but there are also government grants to help you along the way. In this edition of our newsletter, we’ll deal with costs.

After you've saved your 20 per cent deposit, it can be easy to get carried away and forget about the additional sums that come with setting up and maintaining a home.

To help you stay on track and aware of those extra payments, here are some of the most common costs to keep in mind.

Home loan costs
If you've been slaving away to save for a deposit, finally getting a hold on of the finance to purchase your home might seem like the end of the road. But the fun doesn't
stop there. Be aware that you'll also need to make a number of fees for arranging the home loan, such as a settlement charge, service fees and, if you've chose a fixed rate mortgage, a tidy sum to lock the rate in place.

It's worth getting some advice on this, especially if you want to set down a repayment schedule.

Legal fees
hile it's important to be across all the legal ins and outs of the sales process, costs for a solicitor or conveyancer can stack up quickly. This isn't something you'll want to skimp on, though. They can organise the title transfer, be present during negotiations and help you decipher the contract - and, in fact, they make the legalities of the sales journey a whole lot simpler for you!

Stamp duties are commonplace when buying a property. They are a tax on the purchase price of the house or the value of the mortgage and can be a significant proportion in many cases.

Each state or territory government typically has its own levy, so investigate what you'll need to pay when buying your first home. Keep in mind that there's often a set timeframe in which you'll need to pay, which is generally before settlement - stay within it and all will be well! It's crucial to be prepared when going into your first home purchase. If you've got any more questions, we can help you understand what you'll need to pay before and after the transaction.