- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance
When you think about how much money you need to buy a property, you’ll probably think of your deposit. While it’s true that your deposit will be one of the main costs, it isn’t the only one. Many people don’t realise the hidden costs of buying a home. This can lead to a lot of nasty surprises. And that’s the last thing you want in the final stages of your exciting new purchase!
At Bee Finance Savvy, we help our customer budget for these hidden costs, to make their purchase go as smoothly as possible.
If you don’t have a 20% deposit, and you don’t have a security guarantor, you will need mortgage insurance. Mortgage insurance protects the lender in case of defaults. The amount of mortgage insurance will vary according to the amount you are borrowing.
While most people are aware of stamp duty, they may not know how much they will need to pay, or if they need to pay it at all. This is especially true in NSW, due to the introduction of new stamp duty policies and exemptions.
As much as everyone hates red tape, it’s an inevitable part of buying a new property. Luckily, you probably won’t have to deal with too much of it yourself. You can leave that to the solicitors and conveyancers! However, this too attracts costs. You should allow several thousand dollars to cover these costs.
Council and strata costs
Various council costs will apply when you purchase a property, such as rates, and other bills. If you are purchasing a strata property, you can also expect to pay strata fees, which can vary greatly.
Building and pest inspections
Ensuring that a building is fit for purchase, and that there are no hidden issues is an extremely important step. Building and pest inspections are a must, and can cost up to around $500.
Sometimes, other costs can come up during the purchase of a property, and it’s important to allow for these, so that your purchase doesn’t fall over at the last step.
Budgeting for the hidden costs of buying a property
All these costs can be a bit overwhelming to budget for, especially if you’re a first home buyer. At Bee Finance Savvy, we take pride in making the purchase of your new home as simple and straightforward as possible. We’ll discuss what costs may, or will, apply to the purchase of your property, and help you prepare.
We think it’s important for our customers to be informed, so we’ll discuss these costs with your before we submit your loan application. We know that there is nothing worse than nasty financial surprises, so we help you avoid them!
If you’d like to find out how much your property purchase will really cost you, why not have a talk with our friendly broker Desiree. Desiree will provide you with an obligation free consultation, to assess your circumstances. She’ll provide you with an accurate estimate of how much you should allow for hidden costs, and tell you whether or not these costs can be added to your mortgage.
To find out more, call or text Desiree on 0455 131 937 or 1300 140 554. Desiree can also be reached at email@example.com . Alternatively, you can fill out the contact us form on this site.
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