Mortgage - Fees and Charges?

[The Hallidays]

We are wanting to get a mortgage, sooner rather than later, and may only have a 3% deposit. Although i know of companies that do 97% mortgages and i know we will have to pay the Lenders Fee thing, i would like to know, the fees and charges that are required when getting a mortgage, are they added on to your home loan or do you have to pay these as well as the 3%. We were hoping to use the FHOG as maybe part of our deposit

 

Hope someone can help - and that i have made sense...

 

Many thanks

Helen

[Hazel M]

We are wanting to get a mortgage, sooner rather than later, and may only have a 3% deposit. Although i know of companies that do 97% mortgages and i know we will have to pay the Lenders Fee thing, i would like to know, the fees and charges that are required when getting a mortgage, are they added on to your home loan or do you have to pay these as well as the 3%. We were hoping to use the FHOG as maybe part of our deposit

 

Hope someone can help - and that i have made sense...

 

Many thanks

Helen

 

Sorry I'm of no help to you - but we are also going to be in exactly the same boat so will be interested to hear the answer!

[Guest kangomik]

You need to speak to someone who knows what they are on about.

There is an extra insurance if you pay less than 10% deposit.

You will have stamp duty - paid outside of mortgage

You will have insurance on the repayments - a total minefield depending on occupation.

 

There are many variables, not to mention the ones on intrest rates....... i think you need to speak with Andy, or someone like him. At least then your going in eyes wide open.

[HEAPS GOOD !!!]

We used Bernie Lewis Financial Services a guy called Michael Xenides who helped us on our way.....

 

And after a very long 18 months or so we finally moved into our newly built home.....

 

PM me for any more info.....and we were allowed to used all of the First home Owners grant as part of the deposit...i dunno what the current figure is for first home owners...

 

HG

[Andrew from Vista Financial]

Hi there.

 

As Mik says, it can be a minefield.

 

There are really 3 major costs to be aware of when looking to buy.

 

1. Buying costs ie stamp duty etc, generally if you allow for approximately 5% this should encompass all costs associated to buy.
   
2. Deposit, you will need at least 3% (only few banks allow this) - 5% deposit.
   
3. Lenders Mortgage Insurance (LMI) this is if you borrow over 80% and is more expensive the higher percentage borrowed.
   

So as an example on a $400,000 house:

 

• $20,000 = Buying costs.
  
• $20,000 = Deposit 5%.
  
• $11,000 = Lenders Mortgage Insurance (approximately, could be $1k - $2k higher depending on Bank).
  

• $51,000 approx subtotal funds required.
  
• less First Home Owners Grant if allowable of $7,000
  
• $44,000 Total.
  

If a Bank allows a 3% deposit then just reduce the $20,000 deposit to $12,000 (note that the lenders mortgage insurance will increase if this is the case).

 

 

 

A consideration to enable someone to get on the ladder quicker may be to build as the stamp duty etc is only payable on the land value and the Fist Home Owners Bonus Grant comes into play for newly built/construction property under $450,000.

 

So using the above example and assuming that the land is $200,000 and the build is $200,000 then as follows:

 

 

• $10,000 = Buying costs.
  
• $20,000 = Deposit 5%.
  
• $11,000 = Lenders Mortgage Insurance.
  

• $41,000 approx subtotal funds required.
  
• less First Home Owners Grant if allowable of $15,000
  
• $26,000 Total.
  

Again if a lender allows only a 3% deposit then reduce the $20,000 to $12,000 (noting that the LMI will increase slightly).

 

Obviously it can be a quicker way to get on the ladder but remember you will then have to outlay your rent whilst you are paying a mortgae (albeit the mortgage will be on interest only whilst you are building).

 

One major point is that a requirement for most lenders now is evidence of 5% genuine savings, therefore in the above case you must have at least $20,000 in savings that you have held for 3 months.

 

 

Obviously a lot to take in and I hope this expalnation makes sense, however feel free to call if you want to clarify anything.

 

 

regards

 

Andy