Fees to Be Aware of When Buying a Home
Many people don’t realise it, but there are many expenses involved in buying a home that go far beyond the actual price of the property. Mortgage brokers Brisbane routinely warn their clients about such fees, urging them to include the fees in their budgets so that they don’t experience any unpleasant surprises. If you’re going to be buying a home soon, ask your Brisbane mortgage broker about extra fees – and read up on the following information to be as prepared as possible.
Fees To Keep In Mind –
Solicitors/Legal Fees – A charge is made to pay for the work that a solicitor does on behalf of a lender. This fee covers the time spent with lawyers and for the preparation of various loan documents.
Legal Disbursement Fees – These fees cover the cost of typical out of pocket expenses like title searches, postage and photo copying, all of which are usually conducted during the course of buying a new home.
Inspection Fees – It is highly recommended to conduct a Building and Pest Inspection when purchasing any property. At times, these inspections may uncover potential issues whereby additional inspections need to be conducted by specialists such as electricians or plumbers. Be sure to include the potential cost of these fees in your overall calculations.
Application/Establishment Fee – The process of setting up a loan incurs various costs that are passed along to you in the form of an establishment or application fee.
Settlement Fee – Upon settlement, a range of different fees are often charged. Paid by the outgoing lender, these cover fees and adjustments for items such as government department expenses, water and council rates as well as for a range of other miscellaneous items.
Monthly/Annual Fee – There is usually an additional fee that is leveraged to maintain and pay for the costs that are associated with a home loan. This fee is typically included in the monthly payment that you will have to make.
Additional Repayment Fees – If you make additional repayments on some types of loans beyond your usual monthly ones, you will have to pay extra fees. Still, you save money in the long run on interest.
Redraw Fees – If you redraw on additional funds, a fee is usually leveraged. Also, there is normally a minimum redraw restriction in place that you should keep in mind.
Deferred Establishment Fees – If you repay your loan within five years, this fee is going to apply. Basically, early repayment means the bank loses money so you have to pay a fee to help them recoup some of their loss.
Non-Proceeding Fees – After valuation, if you decide not to go through with a loan you will be slapped with a non-proceeding fee which is intended to help everyone involved recoup a bit of their money.