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.

Have another question or ready to begin your journey with Mortgage Mantra?

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