Home Loan ChecklistAPPROXIMATE AMOUNT I CAN BORROW $
WHAT ARE THE REPAYMENTS $
FEES AND CHARGES PAYABLE
Application Fee $
Monthly Service Fee $
Mortgage Insurance $
Valuation Fees $
Stamp Duty on Property Purchase $
Land transfer Registration Fees $
Mortgage Stamp Duty $
Mortgage registration fee $
Solicitor’s Fees $
Search and inquiry fees $
Agency and sundries $
(includes settlement fee and disbursement fees)
Building report $
Pest report $
Home building insurance $
TOTAL FEES AND CHARGES PAYABLE $
FEATURES OF THE LOAN
Are there exit penalties? Yes/ No
Can I make extra repayment without a penalty? Yes /No
Do I have redraw? Yes /No
Is my loan portable? Yes/ No
Am I able to split this loan? Yes /No
Can I top up at a later date? Yes/ No
Does the home loan operate like a transaction account? Yes /No
If I’m well ahead in repayments, can I stop paying for a while? Yes /No
QUESTIONS YOU SHOULD ASK
What would my repayments be in interest rates increase by 2-5%?
How much does redraw cost? (if applicable)
How often can I make repayments?
How are repayments handled?
When is interest charged?
How is the rate set?
A home loan is basically made up of principal and interest. Principal is the amount you borrow and interest is what you pay to borrow and use the money.
Types of home loans can be The Standard Variable-Rate Home Loan
Basic Variable Home Loan
Fixed-Rate Home Loan
All-In-One Home Loan
Equity Access Loan
Home loans generally run for 20, 25 or 30 years. (The term of the loan)
Lenders Mortgage Insurance covers your lenders in the event that you default on your mortgage repayments? If the lender needs to sell a property due to default and the sale proceeds does not cover the land then the mortgage insurance will cover the shortfall.
Stamp duty is State tax paid by the purchaser, calculated as a percentage of the sale price of a property.
COST OF BUYING A HOUSE (these are approximate cost and subject to variation)
Application fee $600
Valuation fee $0-250
Monthly Service fee $10
Mortgage Insurance $1500-$3000
GOVERNMENT FEES (average cost)
Stamp Duty on property purchase $ calculated on purchase price
Land transfer registration $ calculated on purchase price
Mortgage registration $77 (fee normally collected by lender)
OTHER (approximate costs)
Solicitor and conveyancing fees $500-$2,000
Search and inquiry fees $200-$400
Agency and sundries $100-$150
Building report $250-$450
Pest report $150-$300
Home building insurance $200-$600
For more information visit www.money.ninemsn.com.au