Your Naruli Finance and Investments Finance Originator can explain these in full.
Stamp duty on a property purchase 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.
Stamp duty on a mortgage 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.
Registration fees on a property purchase When 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.
Registration fees on a mortgage 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.
Title search 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.
Solicitors / conveyancer 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 conveyancer vary from state to state, and depend on the amount of time and work that is required.
Lenders Mortgage Insurance (LMI) 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. The lender of your choice usually requires 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. For more information on when LMI is required please contact your Naruli finance and Investments Finance Originator. LMI is provided by an underwriter external to the lender of your choice. The premiums are determined by the underwriter based on the amount of the loan and the Loan to Valuation Ratio.
