Step 1: Do your sums
So you’ll need to understand what requirements your lender has before starting your property search. Whether you conduct your home loan research online using the various calculators and tools available, or prefer to speak directly to a Queenslanders Loan Specialist, doing your research and asking as many questions about your loan and what your lender needs is the best place to start.
There’s plenty you need to find out, but in general:
- You’ll need a deposit of at least 5% of the value of the property;
- If your deposit is less than 20% of the property value, you’ll also need to purchase mortgage insurance. The cost of this depends on the exact amount of your deposit and the value of the property;
- If you’re a first home buyer you won’t need to worry about Government Stamp Duty if the property is under $500,000, however if you have already owned a home before or your first home is over $500,000 you’ll need to allow for this too. As an example, buying a house worth $400,000 will cost approximately $11,825 in Stamp Duty;
- Transfer fees and Mortgage Registration fees are payable regardless of whether this is your first home or not and these usually work out to be $1,000 or more;
- You don’t want to be buying someone else’s problems, so it’s a good idea to allow about $500 for the cost of building and pest inspections on the house you eventually choose; and
- You’ll also need to allow for Solicitor costs for conveyancing on your behalf – about $1,500 will do the job.