What is a home loan going to cost me?
All you need is your deposit and the property of your dreams, right? Not quite. Know exactly what you’re in for when it comes time for you to buy.
Home Loan Rates, Fees & Costs
Depending on your lender, you may have to pay an application fee or establishment fee when arranging your home loan.
These can be from $400-600, regardless of loan size.
However, if you’re smart, you can avoid paying establishment fees by doing your homework and choosing a loan that’s both right for your circumstances, and looks out for your bottom line. The Greater Bank Ultimate Home Loan Package features a great value rate, as well as a range of added product benefits, and no establishment fee.
What are the refinance home loan costs?
If you're thinking of switching your existing loan from one lender to another, it's best to do your homework before making the jump. Depending on your loan type, and your lender, you may be up for some unforeseen costs.
Check out our guide to navigating home loan refinancing here.
Legal, stamp duty and inspections
For the purpose of this example, let's say we're dealing with a property with a value of $500,000, and we intend on having a deposit of 10% saved ($50,000).
Legal & Conveyancing fees
You should budget for legal fees between $1,500 and $3,000.
The more complicated your purchase (for example, through a company or trust ownership) the more you should expect to pay.
Stamp Duty
In NSW, stamp duty for a property like this will run around $17,990, but it’s important to remember that this figure will vary from state to state.
Take advantage of online stamp duty calculators to get a more exact figure.
Pest and building inspections
When buying a previously occupied property, make sure you have the proper inspections performed.
These will generally set you back between $300-400, but the peace of mind they give is worth every penny.
Lender's mortgage insurance
If you’re able to save a deposit of more than 20% of the purchase price of your home, Lender’s Mortgage Insurance (LMI) won’t be an issue for you.
However, many of us will have a healthy sized deposit but will still fall below the 20% mark. If this is the case, LMI is the premium you must pay to insure your financial institution for lending you more than 80% of the purchase price.
Based on a property price of $500,000, and a deposit of 10% ($50,000), you should budget to pay Lender’s Mortgage Insurance somewhere in the region of $7,000-10,000.
Title and Insurance
When purchasing a property, you must register the title with your state government. On top of this, to protect you against any claims made against the title of your property, you may wish to consider title insurance.
To insure your actual property, Home Building insurance is usually purchased compulsorily when finalising your home loan, however, you are able to choose which insurer’s services you enlist.
While Home Building Insurance prices will vary, it’s important you decide on one with the size, strength and reputation to be there for you when it matters most.
Rates
When buying your new home, the cost of the remaining yearly or quarterly rates for the property (such as water & land rates) fall to you.
These will take effect from the date of settlement, and will be different for each property and area, but for a property of $500,000 you can expect a bill between $500-700.
Calculate your total
Now all that’s left to do is add all your expected costs together, and add them to your deposit figure, so you’ll have a much better idea of how much you’ll need to buy.
With your total in mind, be sure to plot your goal to success with our Savings Goal Calculator. Simply punch in your goal and regular deposit amount to learn how quickly you’ll be making an offer on your new home.
Calculate your deposit figure
Plot your savings journey so you know the light at the end of the tunnel when you see it!
Get a Home Loan Today from Greater Bank's Mobile Lenders
Ready to start a conversation with a lending expert? Let us come to you! Get in touch with your local lender and request a callback today.
People also ask...
There are two main ways to avoid paying Lenders' Mortgage Insurance (LMI):
- Save your 20% deposit - by saving a deposit amount that represents the full 20% of your purchase price, you won't have to pay LMI.
- Consider a guarantor - If you're unable to save the full 20% deposit, applying for a guarantor loan, like our Family Pledge loan is another way to avoid LMI. This loan lets you use the equity in your guarantor's property to help you secure your loan, or a portion of it. This means that as you make repayments on your loan, you gradually pay out your guarantor, and the loan becomes fully yours.
At Greater Bank, we offer a range of home loans designed to meet the many and varied needs of our customers.
If minimising the amount you pay in fees is a priority for you, be sure to compare our range of home loans below, and review our lending fees and charges at our Disclosure Documents page.
An annual home loan fee, sometimes called a package fee, is a fee charged by lenders on packaged loans.
Usually packaged loans offer a discounted interest rate and partner product discounts.
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*Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria.
Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992, Australian Financial Services Licence/Australian credit licence 238273
++$2,000 cashback for loans ≥$250,000 or $2,500 cashback for loans ≥$500,000. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions. Terms, conditions, fees, charges and credit criteria apply.
~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.
^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.
+Additional costs may apply if your loan has a fixed rate.
All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.
FASTRefi® is a registered trademark of First American Title Insurance Company of Australia Pty Limited ABN 64 075 279 908.
Rate City Gold Award 2024, see http://ratecity.com.au/home-loans/awards for more information