Budgeting for Your Home Purchase

 

After you have worked out your income, expenses, savings and probable house price, it is time to do a detailed budget so you know exactly what to afford. There are many costs associated on buying a new home. Naturally a large portion of this is the actual price of house, however you might be surprised how much additional costs there are once you have gone through the full process of buying, mortgaging and settlement.

To assist in budgeting, we have collected a listing of fees associated in buying a house.

Upfront costs of purchasing a house include:

  • Deposit
  • Stamp duty
  • Legal and conveyancing fees including government fees
  • Mortgage and lender fees including mortgage registration fee and lenders mortgage insurance (if you borrow more than 80%)
  • Building inspection fees (optional but highly recommended)
  • Valuation fees (optional but highly recommended)
  • Buyer agent’s fees (optional)
  • Moving fees

 

Ongoing costs include:

  • Interest and loan repayments
  • Maintenance
  • Insurance
  • Council rates and/or strata rates
  • Utilities – electricity, gas, water, phone and internet
  • Renovations (optional)
  • Potential increases to interest rates

 

Keep track of your budget and spending

Learning how to manage your day-to-day finances, including home repayments makes investing in property an easy to manage task. Follow these tips to get started.

  • Set a maximum spend for each month or week including car and mortgage repayments and keep a detailed record to track your performance against that target.
  • Lower the limit of your credit cards so you don’t go over the top with spending.
  • Review you saving account and home loan regularly to make sure you can meet all your expenses.
  • Put your salary and any additional savings on an offset facility as it can significantly decrease your on-going interest payments.

Use our online calculators to help you on your budgeting. For repayments, use our loan repayment calculator.  See how much you could cut off your mortgage by making extra repayments or if you are considering when to purchase and calculating how far your personal finance will take you, have a look at our borrowing power calculator.

For most accurate review of your house buying plans and detailed analysis on how to finance your dream home, Contact Us for an obligation free discussion.

 

Mortgage Basics is an ASIC authorised credit representative and mortgage broker assisting first home buyers and investors purchasing a property and securing finance from one of Australian Major Lenders. A job of a mortgage broker is to assist customers on choosing the right lender for the right property, giving free advice and assistance on entering the real estate market and help on fulfilling the eligibility requirement by assisting dealing with banks and regulatory authorities. Mortgage broker is funded by the lenders therefore customers do not need to pay for the service.

 

Mortgage Basics has helped hundreds of first home buyers and investors secure loans for their properties. In addition to friendly service in English, we have senior mortgage consultants available who also speak Chinese.

 

 

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