TYPICAL LOAN ESTABLISHMENT COSTS

In this section we talk about common costs of establishing a loan facility.

Deposit or Equity

Your contribution towards the purchase price or value of your property.

Loan Application / Establishment Fees

Fee charged by the lender to cover costs in establishing the loan. These relate to the cost of contract preparation and settling the loan, and vary greatly from lender to lender.

Valuation Fee

Fee paid to the lender will require a valuation to be done on the property to be used as security.

Stamp Duty on the Property

Amount is calculated by the purchase price of the property and this fee varies by state.

Stamp duty on Mortgage

This amount is levied on the loan. The stamp duty is assessed on the mortgage based on the amount borrowed and this fee varies by state. Mortgage Stamp Duty is not applicable in some states and territories.

Lenders Mortgage Insurance

LMI is used by lenders to guarantee loans that exceed 80% of the agreed property value. It is a once only payment and is calculated in accordance with the loan amount. Mortgage Insurance is collected by the lender on behalf of the mortgage insurance company prior to settlement. Lenders Mortgage Insurance is usually paid for by the borrower, you.

As the premium depends on the LVR and loan amount, it can only be calculated (if applicable) following a valuation by the lender.

Estimated Legal Costs

An estimate of how much you can expect to pay for a solicitor, conveyancer or settlement agent.

Conveyancing Disbursements

During the process of transferring property ownership between the seller and you, your solicitor will conduct searches on the property and there will be a rates (council and utilities) adjustment fees.

FACT SHEETS

FACT SHEET - First Home Owners Grant & Duty Concessions

FACT SHEET - First Home Saver Accounts

FACT SHEET - Deposit Bonds

FACT SHEET - Loan Establishment Costs

FACT SHEET - Frequently Asked Questions