subject: Budgeting To Buy A Home [print this page] The main ongoing fees that you will have to pay are to your home loan, so when you search for a home loan from a provider, you should look for the loans that offer lower fees and also flexibility.
State Variable Fees
Many people have to budget government fees into their finances. Some types of government fees include taxes and land transfer registration fees, essentially calculated on the price of the property you are purchasing.
Read the fee structure according to the state that you are looking to buy your new home in. Another fee that changes from state to state is the stamp duty rates. If you are a first-time home buyer, you may be eligible for a reduction depending on your circumstances.
Mortgage Insurance
The thought of any additional fees makes you want to cringe, so when you budget your costs, make sure you remember to include mortgage insurance. This fee will depend on the institution, the type of loan you take out and the amount that you took the loan out for. Many loans require mortgage insurance when it comes to loans that are taken out for more than 80 per cent of the home property value.
Other fees that are commonly associated with taking out a loan are legal fees, inspection fees and moving costs. You should also factor in monthly fees such as utilities. With all of these costs, you may be paying a lot more than you may have originally thought.
Before you take out a loan and go house hunting, figure out what your budget is, including all of the hidden or forgotten costs that have been mentioned above. By knowing how these fees will play a part in your monthly outgoings, you will be well on your way to managing your finances better and also being a proud home owner.
