1. Additional cost
There are 4 types of extra cost to any purchase:
Stamp Duty, Transfer and Mortgage Registration fees.
Conveyancing, council and water rates (calculated pro rata) need to be subtracted from the deposit. Conveyancing is the transfer of ownership/legal title of the property from one person to another. Conveyancer, also known as Settlement Agent is a licensed specialist who specializes in the legal aspects of buying and selling property. His job is to provide advice, information about sale, preparation of all legal documents and conduct the settlement. Settlement is a legal possession of the property. It is a few steps process and includes: signing the transfer documents, conducting final property inspection, registering the transfer of ownership with the relevant government agency and making final payment to the seller.
Pest and building inspection.
Lenders Mortgage Insurance, application or establishment fee. Deducted from the loan amount. Lender’s Mortgage Insurance (LMI) covers the lender and not a borrower in the event of not recovering full loan balance from the borrower in the case of loan default. There is an insurance to protect the borrower- Mortgage Protection Insurance. You should ask our Credit Adviser.
2. There is no “cooling off period”
If buy at auction compare to Private sale. Generally, 10% payable on signing the Contract of sale. It is a substantial amount. Sometimes you are able to negotiate 5% Deposit prior to start of the Auction.
Credit Adviser helps to navigate through the maze of different lenders and over 100’s different Home Loans responsibly matching your individual financial situations, to the right loan amount, the right loan with the highly competitive interest rate, and the right structure, saving time and money. Credit Adviser will support you through the application to the settlement and thereafter.