Help a stressed FHB - Settlement costs

Hi all

I was hoping some experts can run their eye over this to help me sleep at night lol

I wanted to know if I am accounting for all the right costs in my balance owed on settlement and wonder if anyone can advise if I am on the right or wrong track

-Property is 655K

-Loan is for 603K – but that includes LMI of $14K and other bank fees of about $500. So I have to account for paying the bank back this amount i.e. I will be paying about $66,000 – which is about my 10%.

- Need to account for Stamp duty – which will be reduced as I am a first home buyer

- Conveyancer fees

- Govt fees: reg of mortgage and reg of transfer

- Adjustments: Council rates (assuming I need to pay around 8.5 months of the annual fee given its now October?), water rates also 8.5 months of annual, body corp – assuming a proportion of the quarter.


Anything I am missing? This is a first home so no other transfer and its in Vic.

 

Can you manage 88 lvr?
LMI@88lvr = 9.2k
LMI@90LVR = 13.5k

ie for an extra 13.1k (2% of 655k) in deposit you can save close to 4k on LMI

 

get a settlement calculation sheet from your lawyers. A draft even if it is no ready.

You have to factor in adjustments such as rates, water etc.

 

Get an estimate from the bank/broker and add an allowance for adjustments, more if it's a body corp, or if close to settlement ask the conveyancer.

You have professionals helping you that know the process like the back of their hand, lean on them for support.

 

Thanks terry! Good call. I was told one isn’t ready as the body Corp isn’t know yet, but good idea to ask for a draft!

 

Thanks Simon! I’ve found it tricky but will do just that. I’ll ask the conveyancer

 

Settlement adjustments can get messy and add to costs. Then there is:
- pest and building inspection/s
- Legal fees
- Insurance
- Connecting utilities : Many will want a prepaid / bond amount eg gas, electricity, water iof you havent got an existing service history.
- Upcoming costs eg The day after you move in you could land a fresh rates instalment or notice etc
- Connections eg foxtel , broadband
- Immediate necessary repairs eg One set of keys and changing locks etc.
- Moving costs eg truck hire

 

Thanks Paul! I think I have most of them covered