Hidden costs when buying a houseThe rapid rise in housing prices has got it’s fair share of media attention in recent years. Many first home buyers have had a hard time saving the necessary deposit but what is often overlooked is the hidden costs of buying a home beyond the mortgage.
You have to budget for quite a few costs before the buying process is completed. These include
- A loan application fee of approximately $400 (could be more or even a little less), but this may be added to your loan if necessary with the lender’s approval.
- Cost of a registered valuers (approximately between $500 -$600) report on the property you wish to purchase.
- A building inspection report (between $400 – $750+GST).
- A LIM report (approximately $300).
- Your solicitor’s fee (between $800 – $1000+GST).
- Cost of moving
Additional costs will depend on whether you have been advised by your solicitor or accountant to incorporate a registered company or form a family trust. Your solicitor or accountant will be your best professional guide in these matters.
- Budget for mortgage repayments.
- Budget for Local Council rates.
- Budget for water rates.
- Budget for home insurance (this is mandatory upon taking out a mortgage) while home contents insurance is optional but recommended. Budget for body corp when and where required.
- Budget for home maintenance & repairs
- Budget for personal insurance – consider life insurance, income protection insurance, health insurance, mortgage protection insurance, trauma and total/permanent disability insurance and redundancy insurance
At Mortgage Mantra we have over 10 years experience in helping kiwis get into their first home. We can advise you on the associated costs, budgeting and organisation of each of these hidden costs to ensure the whole process is as smooth and stress free as possible.
Request a call back and let’s begin our journey to your first home today.
What kiwis are saying about usOur journey with our clients lasts beyond the life of their home loan. That’s why we ask them to keep us posted on how we are doing along the way.
Satish is a very honest man and genuinely cares for his clients. He gives very good advise to his clients based on their needs. I would highly recommend using his services. He also gives his 100% to get the best deals from the banks for his clients.
I have dealt with Satish on more than one occasion – primarily for arranging mortgage. I have found Satish a very knowledgeable and reliable person to deal with and he has a pragmatic approach to solving problems. I will be happy to deal with him again for any mortgage/financial advisory related matter and without any doubt recommend him to anyone seeking such services.
Satish was very helpful and informative in arranging finance for the home buying process. He clearly advised of all available options for the process and ran through the best fit for our situation. I highly recommend Satish.
Satish has been extremely friendly yet professional in his business dealings with me. He knows his subject very well, and provides valuable financial advice. I would highly recommend his services to anyone, because I have found Satish reliable and helpful.
I have solicited Satish’s advice quite a few times relating to Mortgage. At all times he has been able to provide insights that has helped me arrive at informed decisions. Satish’s candidness and willingness to help is highly commendable. I would have no hesitation in recommending him at all.