7 hidden costs of buying your new home you might have missed

The cost of buying your new home includes other fees and charges. You’ve saved a great deposit and signed up for your mortgage. All that’s left to do is move in, right? But have you budgeted for all the costs?Don’t let the hidden costs take you by surprise. Budget for these 7 items ahead of time and move into your new home with enough left over for the housewarming party.
1. Loan application fees
A great loan isn’t just about finding the lowest rate. When making loan comparisons, make sure you check for any fees associated with applying for and setting up your home loan. These application fees can add several hundred dollars to your costs.
Bear in mind, if you borrow more than 80% of the value of your home, you’ll need to budget for the cost of lenders mortgage insurance (LMI). The exact amount will depend on how much you borrow and which lender you choose, your CVF broker can provide info on the estimated costs.
2. Housing Transfer/Stamp Duty
Transfer Duty, or Stamp Duty as it used to be called, is a separate cost based on the purchase price of the property. It’s a State Government tax. How much you’ll pay varies according to which State your home is located, its market value, and whether you are a first home owner.
If you are a first-home buyer, you may be entitled to concessions on Transfer Duty. Again, this is something your CVF broker can discuss with you.
3. Bringing in the Settlement Agent.
It won’t surprise you to hear that buying a house means lots of legal documents. Besides the bank paperwork, you’ll also need a Settlement Agent to handle the legal aspects of transferring ownership.
Clear Vision Finance can recommend a few agents who offer our clients discounted rates, but you can shop around for one yourself, but please remember, settlement agents handle the legal side of the transaction, so the cheapest isn’t always the best option !
4. Building insurance
Your financial interest in your property starts as soon as you exchange contracts. That means you don’t even need to move in before you’re potentially liable for any damage to it or injury it might cause. Unlike the idea of your home throwing rakes at strangers, your obligation is serious.
To avoid bigger, life-changing costs, take out building insurance as soon as the contract is finalised. Premiums vary widely so it pays to shop around. Once you move in to your first home it’s sensible to add contents cover to the mix.
5 . Rates and strata fees

Unlike renting, where you pay a landlord a fixed amount to live in their property, a house you own has extra living costs. Your local council will charge rates that go towards things like local amenities, roads, parks. If your new place is one of many, like an apartment or unit, you’ll likely also pay Strata levies. That’s a periodic payment towards communal needs like cleaning, gardening, and regular building maintenance.
Take a look through the contract of sale to find out what you’ll be up for in quarterly council rate fees or strata levies. A portion of these costs may also be payable upfront when you settle on the property, so it’s worth checking to find out what’s due when.
6. Moving costs
Here’s a fact, moving always takes more time and effort than you think. Every possession you’ve ever owned needs to be put into a box. All your kitchenware, electrics, books, toiletries, clothes, and all of your nic nacs, and even the stuff in your fridge, has to be packed up and transported. Preparing early, and getting some additional help will make things much easier.
Moving costs can range from the price of a case of beer for your strongest mates right through to several thousand dollars for professional removalists. It makes sense to check out a range of options, and remember, it’s much easier to have a clear out, before you move to your new place, so start donating all your unused or unwanted stuff to the local charity shops.
7. Repairs or renovations
Organising a pre-purchase pest/building inspection will confirm whether the property you wish to purchase has any issues, like dodgy wiring, illegal renovations, structural problems, or an infestation of adorable but devastating insects eating through the woodwork. These issues don’t necessarily mean you have to walk away from the deal, but forewarned is forearmed, you should factor in the cost of any repairs that need to be done, and bear in mind that the seller may have to rectify some of the issues, before you move in.
If you have renovations in mind, check out any council requirements and speak with a few reputable builders to come up with an accurate estimate of the costs.
Buying your new home is probably one of the most stressful and exciting purchases you’ll make in your lifetime. Factoring in the other costs when buying will help you to move in, on budget and without any nasty shocks to your bank balance.
Your Clear Vision Finance broker can provide accurate estimates on how much new home loan will cost, and will help to answer all of your queries and try to make the overall process a stressless as possible.