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What additional costs are incurred upon purchasing a property?

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Frequently Asked Questions
What additional costs are incurred upon purchasing a property?

When buying a property, its important to understand the purchase price is not all your committing to. Below are some of the most common additional costs of purchasing a property.

  1. Borrowing Costs – Depending on the loan product and deposit amount, there may be application fees, property valuation fees or Lenders Mortgage Insurance (LMI) to pay
  1. Transfer Stamp Duty – State Government charges a buyer transfer duty when they purchase a property but the percentage scale will vary according to the sale price and whether or not the buyer intends to live in the property or rent it out as an investment.  Depending on the nature of the transaction, certain concessions and exemptions are available, particularly for first home buyers.
  1. Legal Costs and Sercives – To ensure your making the right decisions on both your purchase and financial structure of ownership, you may need to consult with a solicitor, accountant or financial planner. Traditionally these services charge a fee for service.
  1. Insurance – Purchasing a house is likely to be your biggest asset, so its important to have the appropriate insurance cover in place should anything happen to it. Lenders will require you to have building insurance in place prior to providing you with your borrowed funds.
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