It is very important to be aware of the full costs of purchasing well before the settlement of your loan. There’s a lot more to budget for than just the price of your house. Court Financial Services will give you an estimate of these costs in your initial meetings. Here is a general guide.
What is Stamp Duty?
Stamp Duty is a tax you must pay whenever you purchase any property. The actual amount of stamp duty you must pay depends on the selling price of the property you’re buying. Each state government uses a different set of rules and calculations. Court Financial Service can give you an estimate of the amount of stamp duty you have to pay. As an example, stamp duty for a Victorian property purchased for $250,000 is $10,660.
What is the Transfer of Land Fee?
The Transfer of land fee is another charge enforced by the Title Office to pay for changing the ownership details of the property you are purchasing on your property’s Title. This fee is calculated based on the purchase price of your property.
What is Registration of Mortgage Fee?
This is another Titles Office fee which covers the cost of registering your mortgage on your property’s title papers.
Mortgage Insurance
Mortgage insurance is a one-off insurance premium that you may need to pay at the time your loan settles. Mortgage insurance is usually required when you are borrowing about 80% of the value of your property. It is important to understand that mortgage insurance protects the lender if you are unable to repay your loan. CFS will give you an indication of whether you will need to pay mortgage insurance and the cost in your initial meetings.
Legal Conveyancer fees
When you buy or sell a property, you need to appoint a conveyancer to manage the transfer of ownership of your property and other legal matters. Conveyancing costs are normally about $400-$500 for a straight forward purchase.
