|
|
 |
 |
 |
 |
|
|
|
|
When you buy land in any
state of Australia, which may include buildings, you
are liable to pay stamp duty to the government. The amount
varies between each state.
The stamp duty payable, is based on the market value of
the property or the purchase price, whichever is the greater.
Exemptions and concessions may apply in some circumstances.
Check with your solicitor/conveyancer to see if you are
eligible. |
|
|
|
Mortgage documents taken in
Australia attract stamp duty to make them legal documents.
This stamp duty is usually paid to the applicable state
authority on your behalf by your lender. In some states
this duty does not apply if you are refinancing. The amount
payable is determined by the size of the loan and varies
in each state. |
|
|
Whenever a property changes
hands, a document known as a Transfer of Land is lodged
and registered with the appropriate State Titles Office.
This document records the change of ownership. The cost
to register the title varies in each State/Territory.
Your solicitor/conveyancer will usually perform this
task on your behalf. |
|
|
In addition to the registration
fee payable on the land transfer, there is also a government
charge to register the mortgage document. This charge
is usually paid to the applicable state authority on
your behalf by your lender. |
|
|
Whenever a property changes
ownership or is refinanced, a search of the Certificate
of Title is obtained from the Titles Office. This is
to check if there are any encumbrances on the title (an
encumbrance would include things like mortgages, caveats,
restrictive covenants etc.). This search is also used
to check that the details on the Certificate of Title
are correct. The cost of the search varies in each State/Territory
and is usually paid on your behalf by your solicitor/conveyancer
or your lender. |
|
|
|
You are able to act on
your own behalf when purchasing a property, however,
the documentation and settlement process can be quite
complicated and includes many legal issues. Buying a
home is often the biggest purchase you will ever make
and it is strongly recommended that you acquire the services
of a solicitor or conveyancer, who are experts in this
area, to ensure that everything runs smoothly and is
completed correctly. Fees for solicitors and conveyancers
vary from state to state, and depend on the amount of
time and work that is required. |
|
|
Most lenders charge a Loan
Approval Fee.. The Loan Approval Fee is usually a single
up front fee, payable once only and includes documentation,
search costs, loan approval, and loan processing. |
|
|
Lenders Mortgage Insurance
(LMI) is a payment made by the borrower that protects
the lender in the unlikely case that a borrower defaults
and a loss is evident after the mortgaged property is
sold.
Lenders usually require Lenders Mortgage Insurance when
the loan amount is greater than 80% of the property’s
value. This is commonly referred to as the Loan to Value
Ratio (LVR). LMI may be required when the LVR is below
80% for some types of property. LMI is payable once only
at the commencement of the loan and protects the lender
for the life of the loan.
LMI is usually provided by an underwriter external to the
lender. The premiums are determined by the underwriter
based on the amount of the loan and the Loan to Valuation
Ratio. |
|
|
| |
 |
|
|
|
