The costs of being a first home buyer
Updated: Sep 25, 2018
When buying your first home your deposit is not the only expense that you will incurr. Depending on the amount of deposit that you can contribute, you may need to pay Lenders Mortgage Insurance (AKA LMI). If you can't contribute a 20% deposit, LMI is applicable and is calculated on a sliding scale. The less that you can contribute, the higher the mortgage insurance. We have Mortgage Insurance calculators that can help determine your comfort zone.
First home buyers are exempt from paying stamp duty in Queensland up to a certain price. This can be a fantastic saving, but speak to your local mortgage broker to determine how much, if anything, your will need to pay.
The state governments charge a registration of your Mortgage on your home loan. This is because the property that you are mortgaging is being used as security on the home loan. This has to be correctly registered so that any and all claims can be checked by further buyers. It is deisgned to protect everyone.
Legal and conveyancing fees can vary but usually are anywhere from $600-$1500. Generally, the more searches the conveyancer is required to do, the higher than fee. This said, we have seen conveyancing fees a fraction higher for body corporate properties, vs free standing homes, but this is not always the case. Some Conveyancers may offer a discount to first home buyers, so it's always a good idea to let them know.
Building and Pest inspections are a must here in Queensland. Many issues are not easily visible by the untrained eye. these may include wood rot, termites, wiring, poor foundations and many more. Inspections generally cost approx $400-$500
Building insurance is often (not always) covered under body corporate for units and townhouses, but free standing homes are usually required to take out their own building insurance. In many instances, the lender will require this before settling on the home loan as it protects their interests.
Rates, Utilities, Water and repairs are often overlooked, but add up quickly. Always check with your real estate and ask for copies of rates notices to ensure that your have allowed adequately for these extra's
Always try to include a finance clause and a building and pest clause into your contract of sale. This protects you, the buyer