Hidden charges to be considered at the time of buying a house

Loan application Fee

You must consider the processing fee while making budget. Lenders normally charge few hundred dollars for legal contracts and credit checks.

Legal fees

A buyer has to pay transfer fee while buying a house from previous owner. The buyer also needs to seek the service of a legal professional for sealing a deal. This charge varies between $1,000 and $4,000.

Valuation fees

A property needs to be evaluated by the lender. Lenders pass on this fee to the borrower in form of application charge. Be ready to pay between $150 and $300 towards evaluation process.

Stamp duty

Lauchlan Leishman advises that one must put aside a significant amount of money for paying towards stamp duty charges. The amount of stamp duty also depends on the value of property and state you are residing in. There is some discount for first time home buyers.

Inspection fees

Inspection of property is one of the most important tasks that should be performed before buying a house. You may have to pay anywhere between $200 and $1000 for inspection as per the size of property you are buying.

Council rates

These kinds of fee are imposed on homeowners for various facilities like local library membership and garbage collection. It varies as per state and locality.

Apart from the above mentioned charges, Lauchlan Leishman advises that one must also be familiar with charges like mortgage insurance, body Corporate fees, moving costs, utilities, furnishings, repair of furniture etc.