One of the major things that people forget to consider is Asset Protection.
As part of a package, the client sources all of their day to day banking needs from the lender that provides their home loan.
Take a minute to imagine how your loved ones would cope if you were to pass away or have an unfortunate accident and not be able to
work for an extended period of time!
How would they be able to make the repayments on the mortgage? How would you feel if they had to sell the house and rent? You can
avoid these questions by covering your family with life and disability protection.
At Mortgage & Finance, we must ensure you are aware of the need to protect yourself and your family from possible financial hardship
caused by events out of your control. As an additional service to you, we can offer a free consultation with a qualified Financial Planner
who can discuss with you the best way to protect yourself and your family.
Please contact us for more information.
Before you start scouring the net or papers for your dream home, Mortgage & Finance highly recommends that you approach your Broker and get a preapproval loan application underway.
A pre-approval application seeks an “approval in principle”. That is, subject to you contracting on a property of similar value to what was specified in the preapproval application, the Lender will work towards upgrading the pre-approval to a formal approval.
Preapprovals are clearly only available for residential property.
- If your pre-approval expires and you have decided not to purchase a property, neither Mortgage & Finance nor the lender will charge you a fee.
- Pre-approvals do not obligate you to purchase a property.
- With pre-approved finance, once you find a property, the time frame in settling the property can be shortened considerably.
- Having pre approved finance may enhance your bargaining position when negotiating on the purchase of a property. Especially, in the case where there are other purchasers who are also interested in the same property as yourself.
- Vendors and Real Estate Agents love dealing with purchasers who have pre-approved finance
- There is no cost to you! Neither the lender or Mortgage & Finance charge a fee to arrange pre-approvals.
- Pre-approvals last 3-6 months
- Your financial situation is assessed and any issues that may arise are sorted out prior to you contracting to buy a property.
Other services you may require in the process of acquiring your property include:
- Pest inspection
- Building structural inspection
- Settlement agents/Conveyancers
- Depreciation Reports
- Legal services
For more information about such associated services, please click here.
There are a myriad of associated cost in purchasing a home! Outlined below are some of the costs that a borrower may need to pay.
Stamp duty on the transfer of the title of the home or block of land into your name. In a number of Australian States, First Home Buyers and or/owner occupiers may get some stamp duty relief. For example, in West Australia, First home buyers may qualify for the following stamp duty relief, i.e.
- House up to $430,000 purchase price the purchaser pays $0 stamp duty.
- Land up to $300,000 purchase price the purchaser pays $0 stamp duty.
Settlement Agent Fees
Settlement Agent Fees are another fee that the borrower will encounter. Settlement agents will manage the conveyancing of the property through to settlement. There is a standard schedule of fees depending on the price of the property, but the fees are negotiable due to the competitive nature of the industry.
Transfer Registration Fees
Transfer Registration Fees is a Government fee a borrower must pay to register the “Transfer of Land”.
Water and Shire Rates
Water and Shire rates are payable in advance and they generally come due July/August each year. Hence, you are paying rates for the forthcoming year. Depending upon what time of the year you buy will dictate how much you reimburse the vendor of the property.
You should always leave a little aside for miscellaneous expenses such as insurance (home and contents), moving expenses (if required), getting the telephone connected (if required) plus any other little expenses that may pop up.
Lender Application Fee
Lender Application Fee may be charged to you. If the lender of your choice does charge a fee it would cover such expenses as:
- Lender Establishment Fee
- Valuation Fees
- Documentation Preparation Fee
Due to the competitive nature of the industry, many lenders do not have an application fee
Mortgage insurance is another fee that you may pay. Generally, insurance is required on your loan if the lender advances you greater than 80% of the purchase price. The insurance policy protects the bank should the borrower default on the loan and the lender cannot recoup enough from the sale to payout the loan. The insurer will payout the shortfall from the sale of the property to lender and then attempt to recoup that shortfall from you the borrower.