When it comes to taking out a new home loan and purchasing property, there are a number of different things to remember. Things like figuring out your borrowing capacity, saving up a home loan deposit and setting some money aside for a head start on your mortgage repayments are just some of the basics to consider when approaching mortgage brokers in Australia. However, you should also be aware of the hidden costs that could creep up on you throughout the home loan process. These expenses can be surprising and a little off-putting, so its important to always be aware of what youve signed up for. Lenders mortgage insurance One of the most common extra charges seen in Australia is lenders mortgage insurance. This is charged on home loans where the applicant cannot save up their 20 per cent deposit, which means the lender has to commit over 80 per cent of a propertys value. This extra charge is to cover the added risk the lender has, with the expenses helping to cover anything lost in the event that youre unable to pay off your home loan. Stamp duty When you transfer over the title of the property from one individual to another, stamp duty is the charge applied to this process. However, the amount varies depending on the state youre in and if youre a first time buyer – who often receive concessions on the payment. Its worth getting in touch with a local mortgage broker to discuss the amount of stamp duty you may be eligible to pay, as well as getting some insight into the other potential extra costs resting on top of your mortgage application
Posted on: Fri, 21 Nov 2014 03:35:58 +0000
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