Home Loan in Melbourne

Home Loan in Sydney

What Are the Initial Costs of Buying a House?

Just coming up with a deposit for your mortgage can often be such a big task you can forget about the other initial costs of purchasing a home. Costs such as stamp duty, insurance and moving fees are all costs which you will need to pay at the start of moving into your new home. There can be a large number of initial expenses depending on the situation and property, so we’ve outlined some of them here for your reference.

Stamp Duty

Other than the initial deposit for your home loan, this will be the most expensive initial cost with stamp duty costs going up to 4% of the property’s value depending on the state, and can vary considerably with complex rules. Our brokers can help you understand these regulations and work out what you would have to pay in stamp duty for your property.


Mortgage Registration Fee

This is another fee that varies considerably depending on your state and location. Usually ranges from $107 in NSW to $189 in the Northern territory


Mortgage application Fees

These are fees that your lender will charge you during the application and creation of your home loan. These depend on the lender, but you can usually negotiate with the help of a broker for them to provide deals on these or packages.


Lender’s Mortgage Insurance

Depending on the size of your deposit you may have to pay for lender’s mortgage insurance. A lender will usually require you to take out LMI if your deposit on your home loan is less than 20% of the value of the loan.


Moving Costs

The cost of moving home will vary person to person depending on the size of the move (distance, quantity of things) and how you choose to move (moving company, truck rental). However, it is still a significant cost to keep in mind that you will need to pay upfront.

Our brokers can help you determine the extent of all the upfront costs of purchasing a home and how best to manage them.

If you would like to learn more about the initial costs of buying a house, please get in touch with us today.

Home Loan in Brisbane

Should you get help from your parents with buying a home?

The cost of buying a home in Australia is spinning out of control, especially if you’re looking in one of the larger metropolitan areas.

Spending more than a decade’s pay on one single purchase is not feasible for most Australians. Some, when they can’t afford to buy new homes themselves, get help from their parents instead. Is this a wise idea? If you’re considering asking your family for financial assistance, what are the pros and cons you need to consider?


A diverse range of options

The good news about getting help from your family is there’s a wide range of ways to do it:

  • The down payment: Some mums and dads simply gift their kids a large stack of cash to make the deposit on a home, then trust them to handle the mortgage repayments from there.
  • A family loan: Loans from your parents are always better than from a bank; parents can offer lower (or no) interest rates and be more forgiving about repayments.
  • Acting as co-borrower on the mortgage: If your income is too low to qualify for the mortgage you want, your parents can go in as a co-borrower.

Getting home loans that will really help

The real estate landscape is complicated, and making a poor decision can set you back financially for a long time. If you work with us, we’ll give you all the insights you need to make smart decisions that will help you get onto the property market.


4 mortgage terms you need to know when buying a home

Purchasing a property is a huge financial decision, which is why people should familiarise themselves with the mortgage process and any essential terminology. Unfortunately, recent research has indicated many Australians aren’t as familiar with common home loan terms, as they need to be.

Do you know how split home loans work? Any idea what an offset account is? What about the differences between interest rates and comparison rates?

If you have detailed knowledge of all these terms, then you’re in a minority of Australians. Unfortunately, many property buyers aren’t in the same boat, according to McCrindle research.

Only 54 per cent of people definitely understand offset accounts, with the figures slumping to just 39 and 35 per cent for split mortgages and comparison rates, respectively.

Let’s unpack some common industry jargon.


Split mortgages

You are probably aware of the differences between a fixed-rate and a variable-rate mortgage. A split home loan is a combination of the two, providing borrowers with separate periods of fixed and variable interest rates.

Homeowners can benefit from security and stability during the fixed-rate portions, while also taking advantage of potentially lower charges as they move into variable segments of the loan.

Offset accounts

An offset account is a savings or transaction bank account that is tied to your home loan. Any money held within the account is offset against the value of your mortgage, helping to lower interest rates.

For example, if you have a $500,000 mortgage and have already paid off $200,000, you can expect to pay interest on the remaining $300,000. However, people with an offset account containing $100,000 would only be charged interest on $200,000 of the total.


Comparison rates

This one is pretty simple. Comparison rates are similar to interest rates, but they also include a number of other mortgages costs, such as fees and charges, giving you a more accurate idea of your total home loan outgoings.


Redraw facilities

A redraw facility is a feature that allows you to withdraw any mortgage overpayments you’ve made thus far. So, if your home loan costs $2,000 a month, but you pay $3,000 instead, a redraw facility would enable you to access the extra $12,000 you’d contribute over a year, should you need it.


Talk to us today!

Mortgage terminology can be confusing, and navigating the market is often difficult due to the wide range of lenders and products available.

Contact our team today to learn how our specialists can help you with your next purchase.

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