Costs of buying a property

  • Standard Costs
  • Some mandatory, some optional
  • Paid to government & lender
  • Depends on property & loan value
  • Some costs covered in loan
  • No charge for our service
  • Use the purchase costs estimate form
  • Speak to us to get all the true costs

There are a range of standard costs you will need to pay when purchasing a property.

Some are mandatory and some are optional depending on your circumstances and the type of property being purchased.

See further below for costs associated with refinancing.

Naturally our services are free to you, as our brokers are paid by the lender.

Your deposit

The size of your deposit makes a difference to certain conditions of your loan (such as whether Lenders Mortgage Insurance is payable and possibly the interest rate payable). Most mortgage lenders will recommend that you save as much as you can, and if possible have a deposit of 20% or more of the property price. The higher the deposit amount means the less you'll need to borrow, and the lower your interest costs will be.

There are lenders and certain loan types that may accept either no deposit or low deposits of 3-10%.

If you are eligible, the 'First Home Owner Grant' can help to boost your deposit, and there are a range of other rebates and exemptions available to first time home buyers that vary from state to state. Ask our loan consultants for the best type of loan for you and what assistance you may be eligible to receive.

Saving for your deposit

For more information on deposits, how to save for and increase the size of your deposit, deposit options, deposit bonds and good savings strategies, see 'How Can I Increase My Deposit?'

To save a meaningful deposit for your Home Loan you will need to budget. If you haven't already worked out a household budget, now's the time to do it. Our handy Budget Planner may assist you.

Stamp duty

This is a State Government tax payable by the purchaser and based on the purchase price of the property. The cost of Stamp Duty varies between States and Territories. Subject to your personal loan circumstances, the cost of stamp duty can be included in the loan amount.

First home buyers may be exempt from Stamp Duty or entitled to a rebate or concession such as the First Home Owners Grant - speak to your solicitor, conveyancer, or settlement agent for details.

To find out about your state's policy on Stamp Duty for first home buyers click on the links below:

Property title registration fees

These are paid to the Land Titles Office when you register any document relating to your property. You will need to talk to your solicitor or the Land Titles Office in the State or Territory in which the property is situated to work out how much these fees will be.

Lenders Mortgage Insurance (LMI)

All lenders have limits on how much they will lend you. This will depend on the size of your deposit, the value of the property, and your servicing capacity (based on your income, and how much you are able to repay).

Normally, if more than 80% of the value of the property is required as the loan amount (60% if you're self-employed and seeking a Low Doc loan), then the payment of a once-off Lenders Mortgage Insurance (LMI) charge will be payable. This Lenders Mortgage Insurance cost can be added to your loan amount so it doesn't cost you anything upfront.

Mortgage insurance will often cost more than one per cent of your property value. This insurance doesn't insure you - it insures the lender against the risk that you may not be able to repay your loan.

The advantage of LMI is that you can buy a property with a smaller deposit.

Goods & Services Tax (GST)

This tax is not payable on bank charges and fees, or if you're buying an established property. However, if you're buying a new property, GST may apply. GST will apply to many other costs of sale including valuation and inspection, real estate agent fees and auctioneers fees, irrespective of whether it is a new or established property.

Professional Fees

Legal/Conveyancing/Settlement Agent Costs

These are advised to you by your legal representative for managing the legal process, including checking of the contract, the loan contract and other legal tasks.

Pest and Building Inspection Report Fees

There are professional service providers which conduct pest and building inspection services. You will need to pay these providers directly if you require an inspection as to the structural and infestation aspects of the property you wish to buy.

Loan Set-up costs

These vary depending on the lender, and may include loan establishment fees. Your Time Finance Mortgage Broker can explain more about these to you.

Insurance

When you purchase a property and take out a new loan, the lender will require the property to be insured. This can be insured by any insurer and is your cost. If you are taking out bridging finance the lender will require both properties to be insured.

Costs when refinancing

Refinancing your loan typically costs you money at the start. These costs of refinance depend on each lender, and are normally between $1,000 and $3,000. Your Time Finance consultant will explain these to you and quantify exactly what you will have to pay.

  • Application Fees - includes documentation, settlement and handling fees incurred by the lender.
  • Discharge Fees - includes early repayment fees, often charged if you repay your loan before it was due to finish, and valuation fees if one is required.
  • Registration fees on your new mortgage
  • Lenders Mortgage Insurance - usually payable if you refinance more than 80 per cent of the value of your property. Mortgage insurance will often cost more than one per cent of your property value.
  • Stamp Duties - In some circumstances, state governments will charge stamp duty on your new mortgage.

No cost for our Service

You do not have to pay anything for the services of your Time Finance Loan Consultant. We are paid by whichever lender you end up taking the loan through.

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FAQs
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Depends on the size of your deposit, the value of the property, and your servicing capacity (based on your income and how much you are able to repay).

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Most mortgage lenders will require a deposit of 20% or more of the property price. Less may be required however will require mortgage guarantee insurance in most cases

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Depends on the type of loan, intrerestr rate, payment term, and whether you pay monthly or fortnighly. Use us mortgage calculators to guide you.

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Every state is different and may depend on the value, whether you are building or buying an established home. Read more in our FHOG article

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It is a rate that includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure that lets you compare loans from differengt lenders on a fair comparison.

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This 'in principle approval' is usually valid for 3 months. Gives you the confidence on how much you can borrow before your purchase a property.

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The cost of Stamp Duty varies between States and Territories. Subject to your personal loan circumstances, the cost of stamp duty can be included in the loan amount you borrow.

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