Whether this is your first or your fifth investment property, we've put together some helpful tips for navigating the common upfront costs you might encounter when purchasing a house, and a few reasons why you might choose to have your home loan with Auswide Bank. If you prefer talking with someone face-to-face or over the phone, our Lending Consultants are always here to help you through to process.
A building and pest inspection will determine the condition of the property and most importantly, it’s structural integrity. If the inspector finds a number of concerns such as asbestos, termites, cracks or drainage issues you might decide not to proceed with the purchase or request a reduction in the price.
Lenders Mortgage Insurance is a one-off premium that you can pay upfront or as part of your loan and is designed to give those with a lower deposit an opportunity to buy a property.
Essentially, LMI protects the lender if you are unable to pay for your loan in the future and is calculated based on the size of your deposit and how much you need to borrow. The best way to avoid paying LMI is to have a deposit of at least 20% of the property purchase price.
A loan application or establishment fee is a one-off payment per application, which may also include a valuation fee.
When buying or selling a home, a conveyancer or solicitor will arrange documentation for your sale or purchase. Often this includes preparation of the contract, title searches and organising settlement costs.
A mortgage registration fee is a government fee paid during settlement when a mortgage is established (buyer) or when the mortgage is discharged against the property (seller). The fee register’s the physical property as the security on the home loan, allowing any future buyers to check claims that may exist on the home.
A transfer fee, also required by the state government, covers the transfer of title of the property from one party to another.
Stamp duty, sometimes called transfer duty, is a tax charged by the state government when buying a house or transferring to a new owner. It’s one of the more expensive costs you will incur outside of the property purchase price and the amount paid can vary greatly depending on the price of the property and which state or territory you live in. If you’re a first-time home buyer, you may be eligible for stamp duty exemptions or concessions which can significantly reduce the cost.
When you purchase an apartment or townhouse within a development, you will generally incur body corporate fees, which go towards the management and maintenance of the building or complex. Body corporate fees can vary depending on a few factors but may take into account the services provided and the type of dwelling.
Once you have your investment property and you’re ready to have tenants move in, you’ll likely consider the help of a property manager who will, as their title suggests, manage your property. This often includes listing your property, screening applicants, managing tenant maintenance requests and rent collection.
Landlord insurance is designed to cover the cost of replacement or repair needed when certain events occur that damage your residential investment property. It can also cover any contents you provide for your tenant’s use that could leave you out of pocket. Find out more about Auswide Bank Landlord Insurance.
A variable rate loan jam packed with features including an optional 100% offset account, redraw facility~ and extra repayments+ so you can pay off your loan sooner.
A fixed rate home loan with all the benefits of a variable home loan including an optional 100% offset account, redraw facility~ and extra repayments+.
Home loans don't need to be complicated. Our award-winning Basic Home Loan is a flexible, 'no fuss' home loan with a competitive variable rate.
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~Redraw is subject to Auswide Bank's discretion – limits may apply.
+A break cost may apply if the fixed loan is paid out in full or any change made to the loan structure within the fixed term.
* Full details of the Freedom Package are available in the Freedom Package Schedule of Benefits and Freedom Package Terms & Conditions. As per the Freedom Package terms and conditions, some benefits will not be applied to your products unless you advise us that you're a Freedom Package customer. Freedom Package benefits not available on Bridging Loans.
This information is a summary of features & benefits only. This is not an offer to lend - credit assessment criteria, terms and conditions & fees and charge apply - full details on application. Loans are only available to approved applicants offering security in approved property in Australia. Prior to entering into a credit contract with us you should read our Credit Guide.
