When it comes to buying a property, it’s not just the mortgage you need to worry about. The following costs usually need to be paid before you can think “home, sweet home!”
Mortgage costs and fees
Once you’ve had your offer accepted, and if you are buying with a mortgage, there will be a number of fees that you may need to pay in order to progress with your application.
Conveyancing and legal costs
You will need to instruct a solicitor or registered conveyancer to do the legal work for you and their fee will depend on the type of property that you are buying (either leasehold or freehold) and the property price. They generally offer a fixed fee or a fee based on a percentage of the property price.
You should expect that when you ask the solicitor to do the work for you, you will need to give them some money ‘to hold on account ‘ to cover the initial costs. The balance of the fees will need to be paid before the property purchase completes. They will send you ‘completion statement’ which will show all the costs that have been incurred along with a total amount that you will need to pay before the property is yours.
The solicitors will also have to pay for information and checks for which you will need to cover the costs, these are generally known as disbursements. These includes ‘searches which will be required by your lender as they may affect the potential future value of the property. All of the searches normally cost $150 -$250.
Surveys and reports
As well as checking all of the paperwork, it is always recommended that you have a survey of the property undertaken. This will give you independent professional advice as to its condition, and highlight any potential issues or concerns. The cost will vary substantially depending on the type of survey, the location, condition and size of the property.
