Home Loan Checklist

What can I borrow? 

What are the repayments?

Fees are charges payable; application fee, monthly service fee, mortgage insurance, valuation fees, other.

Government fees; stamp duty on property purchase, land transfer registration fees, mortgage stamp duty, mortgage registration fees, other.

Other fees; solicitors fees, conveyancing ($500 – $2000), search and inquiry fees ($200 – $400), agency and sundries ($100 – $150) (including settlement fee and disbursement fee), building report ($250 – $450), pest report ($150 – $300), home building insurance ($200 – $600).


Features of the loan

Are there exit penalties?  
Can I make extra repayment without a penalty?   
Do I have redraw?       
Is my loan portable?    
Am I able to split this loan?    
Can I top up at a later date?
Does the home loan operate like a transaction account?   
If I’m well ahead in repayments, can I stop paying for a while?   

Questions you should ask

What would my repayments be in interest rates increase by 2-5%?
How much does redraw cost?
How often can I make repayments?
How are repayments handled?
When is interest charged?
How is the rate set? 

Home loans

A home loan is basically made up of principal and interest.  Principal is the amount you borrow and interest is what you pay to borrow and use the money.
Types of home loans include:
– Standard Variable-Rate Home Loan
– Basic Variable Home Loan
– Fixed-Rate Home Loan
– All-In-One Home Loan
– Equity Access Loan

The term of a loan generally runs for 20, 25 or 30 years.

Lenders Mortgage Insurance covers your lenders in the event that you default on your mortgage repayments?  If the lender needs to sell a property due to default and the sale proceeds does not cover the land then the mortgage insurance will cover the shortfall.

Stamp duty is State tax paid by the purchaser, calculated as a percentage of the sale price of a property.

COST OF BUYING A HOUSE (these are approximate cost and subject to variation)

Application fee    $600
Valuation fee       $0-250
Monthly Service fee       $10
Mortgage Insurance     $1500-$3000

GOVERNMENT FEES (average cost)
Stamp Duty on property purchase    $ calculated on purchase price
Land transfer registration   $ calculated on purchase price
Mortgage registration       $77   (fee normally collected by lender)

For more information visit www.money.ninemsn.com.au


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