As a general rule, you should aim to put down a deposit of 20% to avoid paying Lender's Mortgage Insurance (LMI). Some lenders will accept a 5% deposit, however a deposit of 10%-20% is preferred. Use Highland Financial Services’ repayments calculator to see what impact different levels of deposit will have on your loan.
The costs involved in buying a home will normally include Government stamp duty, conveyancing fees and may also include bank fees depending on the loan product and lender you go with. As a general rule you can expect to pay between 7% and 11% of the purchase price in purchasing costs. For an accurate assessment of your borrowing costs contact our team of finance professionals at Highland Financial Services for a free confidential discussion.
LMI is a fee charged by lenders to borrowers with a deposit which is less than 20% of the property’s purchase price. LMI gives the lender extra security against borrowers presenting a higher risk in the event that the borrower defaults on their loan. Contact our team of finance professionals at Highland Financial Services for a confidential discussion to see if you will need to take out LMI with your loan.
The first home owners grant is available to first home owners purchasing or building a new home. A new home cannot have been previously occupied or sold as a place of residence and includes homes which have been substantially renovated or built to replace a demolished premises. In NSW the first home owner grant is capped at $600,000 for new home purchases and for properties requiring the owner to enter into a contract to build, or where the purchaser is an owner builder the total value cannot exceed $750,000. Speak to our team of finance professionals at Highland Financial Services for more information on the first home owners grant.
The stamp duty you will pay will depend on a number of variables including purchase price, the state your home is located in and whether you are purchasing an owner occupied or investment property. Special concessions also apply to first home buyers. Use Highland Financial Services stamp duty calculator to work out your stamp duty costs.
There are a number of advantages to having a pre-approval in place before you make an offer on your new home. You will know exactly how much you can afford to pay for your new home and you have the freedom to make an offer knowing that your finances are in place. Buyers generally experience fewer hiccups with the sale process when their finances are pre-approved, and in some cases sellers may accept a lower offer with the confidence of knowing the buyer is serious. If you decide to make an offer or bid at auction a pre-approval will give you the confidence to move quickly and with certainty. Talk to our team of finance specialists at Highland Financial Services for assistance with getting your pre-approval in place.
Depending on your individual situation there are a number of strategies you can put in place to help you own your home sooner. Lenders have a variety of facilities including offset accounts to reduce your interest repayments; options for making weekly and fortnightly repayments instead of monthly to cut interest costs; making extra repayments on your home loan or refinancing which can all help you shave years off your home loan. Speak to our team of finance experts at Highland Financial Services to find the perfect strategy to help you own your home sooner.
The standard deposit payable on a property bought at auction is 10% of the purchase price. The deposit can be paid by personal cheque, bank cheque or even cash on the day of the auction. Payment on the day of the auction is preferred, however you do not have to pay anything immediately unless the contract states that the deposit is due on the day of sale. In some cases contracts allows a few days between the day of sale and the day the deposit is due. Contact your local Highland Property Area specialist for further information on buying at Auction.