What costs can I expect when I purchase a home with only 10% deposit?
If you are purchasing a property with less than 20% deposit, there are some costs that you really need to consider. Each of the banks will be charging you a loan processing fee and, depending on what your LVR is and how much you are borrowing, this fee will range between $150 and $500.
You will also have to pay for a valuation. A valuation for a property, depending on the property type, will range between $700 and $1,000.
The third cost you will have to pay for is your solicitors fees. If you are purchasing with 20% equity or more, then the bank is going to give you a cash contribution. However if you are purchasing with less than 20% then it’s unlikely you will get a cash contribution that will cover the entire cost of your solicitors fees.
Those are the upfront costs, but when it comes time to structure the mortgage, the interest rates are also not going to be as competitive as someone with 20% equity.
If you are close to purchasing a home, and would like to discuss these costs further, please don’t hesitate to give me a call on 021 662 205 or email email@example.com