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BUYING GUIDES |
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BUYING - The Costs of Buying
Article sourced from St George
> Title searches - This search is undertaken by your legal representative. It provides details of who owns the property and who else has an interest in the property, as well as noting restrictions and conditions which may need to be checked out. For a small fee, this is a good way to research who has an interest in the property which affects the title.
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Lenders' Mortgage Insurance
You may be required to pay for Lenders' Mortgage Insurance if you borrow more than 80% of the value of the property you are purchasing. It covers the lender if there is a shortfall after the lender exercises its right to sell the mortgaged property due to a borrower not complying with the loan agreement and mortgage. That is, if you do not make your repayments, your lender has the right to sell your property. It does not protect you from having to pay what you owe on a mortgage. It does not pay out the loan in the event of the borrower's death or injury, nor cover loan repayments in the case of illness or unemployment, and therefore should not be confused with Life Insurance or Mortgage Protection Insurance. Remember, if you can contribute to more than 20% to the purchase price of the property, Lenders' Mortgage Insurance may not be required. |
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Rates
From the settlement date, you are responsible for all the council, water rates and levies on a property. You may have to reimburse the previous owner on a pro rata basis for any payments they have already made. Your solicitor will work these out for you. |
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