For years, you’ve laboured
to save money for a deposit on your first-ever home. Now, you finally have your
target amount, and you’re eager to get the purchase process started. However,
perhaps you only looked at the purchase price and didn’t consider additional
costs. According to experts, generally, you should expect to pay 10 percent
more than your home’s
listed price. It’s important to include these additional costs in your
computation to avoid headaches later on.
Home loan costs
Lenders typically charge a
fee for arranging a home loan. Some of these fees include settlement costs,
establishment fees, and services. If you opt to lock your rate, you may have to
pay a fixed-rate lock fee as well.
General purchase costs
Inspection reports, title
search, and legal fees are just some of the few other costs associated with
buying a new home.
Stamp duty
States and territory governments
charge a stamp duty on the purchase price of a home. The stamp duty amount
varies depending on the home’s cost, and of all the fees, it’s the one that
generally makes the biggest dent on a first homeowner’s pocket.
Be sure to discuss these
costs with your home builder and/or home loan provider to get a full
understanding of what’s involved.
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