First Home Buyer Costs to Consider

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.

Leave reply

Back to Top