What does it cost to take out a loan?
There are a number of different costs associated with taking out a loan, this is important to remember when saving for a deposit, during the application process, and planning for the future.
Some of the fees that may apply on a mortgage can include:
- Transfer Registration Fee
- Stamp Duty (if not eligible to have it waived i.e. First Home Owner exceptions)
- Mortgage Registration
- Loan Establishment Fee
- Settlement Attendance Fee
- Lender’s Mortgage Insurance (if you have high LVR)
- Rate Lock Fee
- Property Valuation Fee
- Conveyance Fee
Fees change all the time and please contact us to find out the latest amounts but here is some rough estimate to help you budget.
- Transfer Registration Fee – $300
- Stamp Duty (if not eligible to have it waived i.e. First Home Owner exceptions) – Use Stamp Duty Calculator
- Mortgage Registration – $130
- Loan Establishment Fee – $600 currently waived by most lenders
- Settlement Attendance Fee – $250 (Only occurs in refinancing)
- Lender’s Mortgage Insurance (if you have high LVR) – Use LMI Calculators
- Rate Lock Fee – $750
- Property Valuation Fee – up to $330 but most lenders will incur this cost.
- Conveyance Fee – $1000
It’s also important to remember there are other additional costs for purchasing a home, such as insurance, setting up utilities, building inspection, body corporate fees, etc.
With this in mind, you’ll need to view the amount you have saved not as your whole deposit, as a portion of it will be spent on the costs associated with securing the loan, as well as on other costs associated with owning a property.
If you’d like to know more, get in touch with us.
Disclaimer: The information contained on this web site is general in nature and does not take into account your personal financial situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
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