Are you aware of what fees to pay when buying a house? It might surprise you that there are actually a number of additional fees home buyers need to pay during the home buying process. But knowing what all these hidden costs are and how much you’ll need to pay can be quite a challenge. So, to help you understand these costs, Darren Walters and the New Home Consultants at No1 Property Guide put together this article covering all the different fees you may come across during the home buying process.
At No1 Property Guide, we specialise in no or low deposit house and land packages. Utilising Darren’s 20+ years of experience in property, finance and lending policies, we’re able to help renters escape the rental nightmare and get into their own home. The first step in Darren’s no or low deposit system is to complete our pre-qualification. From there, our New Home Consultants will find all of your factual new home options and work with you to help you achieve your homeownership dreams when also explaining what fees you need to pay when buying a house.
One of the fees most home buyers have heard of, stamp duty is essentially just a tax you pay your state or territory government when buying a property. The exact amount you pay will vary. And will depend on the price of the property you’re buying, whether you’re a first home buyer or not, if it’s an investment property, as well as what state you’re in.
For example, a first home buyer in Queensland buying a new home worth $500,000 would pay no stamp duty at all. But someone who has owned previously would be paying roughly $8,700.
And in the Northern Territory, a first home buyer buying a new home worth $500,000 would be looking at over $23,000 for stamp duty! Stamp duty is generally the most expensive fee many home buyers will come across. Luckily, most states and territories have grants and concessions available for first home buyers to help reduce the cost.
Some, like QLD and the NT, offer a $10,000 First Home Owners Grant. Which can help cover the cost of stamp duty or additional fees. Others, like the ACT, offer a concession to reduce stamp duty costs for first home buyers.
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One of the strengths of Darren’s no or low deposit new home system is the fact your stamp duty will be lower than most new home buyers. Even if you aren’t a first-time buyer! This is because you pay stamp duty on the value of the property when you buy it. At this point, it’s simply a block of land with no building on it. This reduces the total perceived value of the property and means you won’t need to pay as much stamp duty.
The New Home Consultants at No1 Property Guide have the skills and experience to fully guide you through the fees and costs of buying a new home. Our team will advise you on any stamp duty costs you’ll need to pay. Or what grants and concessions you might be eligible for.
A transfer fee is another government fee that covers the cost of transferring the title of ownership. As with most of these fees, there is a different cost depending on what state or territory you live in. But it can range from as little as $150 all the way up to $3,000 in some states.
Mortgage Registration Fee
A fairly self-explanatory cost, this is another state/territory fee that will vary depending on where you live and the value of the property. Luckily mortgage registration fees are a fairly low cost and are generally less than $200 for a $500,000 property.
Legal & Conveyancing Fees
When you’re buying or selling a house, it’s always recommended that you get legal and conveyancing advice. This obviously adds an additional cost to the process. But it’s almost always the right decision, especially if you are buying an existing home or through a real estate.
The amount you pay will vary depending on who you go through and the complexity of the contract. However, it will generally range from $500 to around $3,000 in most cases.
Mortgage Application Fee
Another fairly self-explanatory fee, this is a simple cost lenders and banks will charge you for processing your mortgage application. There’s no set cost here. So you’ll need to talk to your lender to get a clear idea of what they’re charging. In some cases, you might be able to negotiate a lower application fee or a complete waiver.
If you go to traditional banks or lenders, you may end up paying this application fee multiple times. Only to get rejected every time. And suddenly you’ll have paid hundreds or thousands of dollars with nothing to show for it. At No1 Property Guide, we only put you through an application once we have gotten you pre-qualified through Darren’s proven system. Doing this increases your chances of approval and is the reason we have had a 95%+ approval rating.
Another fee many home buyers have probably heard of. Lenders Mortgage Insurance (LMI) is what you’ll need to pay if you buy your new home without a 20% deposit. This will vary depending on the value of your mortgage, as well as the size of the deposit you bring. However, it will generally be somewhere around the 1-3% range.
Of course, if you’re able to front a 20% deposit, or are eligible for the First Home Loan Deposit Scheme or another grant, you may not have to pay LMI at all.
The Mortgage Managers at No1 Property Guide can help you understand your LMI position. As well as apply for any grants or concessions you’re eligible for. The best way to discover your factual options is to complete our pre-qualification form. From there, our team can find out the best way we can help you escape the rental nightmare.
Building & Pest Inspection Fee
If you’re buying an existing home, you’ll want to get a building and pest inspection done as well. Generally ranging from $200 – $700, a building and pest inspection will be done by an experienced technician who checks the property for any structural issues or pest infestations.
This might seem like an excessive cost; however, it can save you from buying a home that could cost you thousands to repair in the near future.
Luckily, if you’re building new through No1 Property Guide, this won’t be a fee you need to worry about. Every home we build is completely brand-new, which means it is guaranteed to be in perfect condition.
Of course, all of our no or low deposit new homes also come with a building guarantee, so you can rest assured knowing if you do come across any issues with your new home, our builders will come back to repair or fix it ASAP.
Let Our Experts Guide You Through What Fees to Pay When Buying a House
Buying your own home is a momentous occasion, don’t get caught out by surprise fees that stop you from getting your dream home. The New Home Consultants at No1 Property Guide are experts in understanding the different fees and legal costs you’ll come across. Our team will walk you through the process from start to finish, and we’ll be there to guide you every step of the way.
The first step on the journey is to get pre-qualified. Once we understand your factual options, our New Home Consultants can discuss the best ways to help you achieve your homeownership dream.