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Buying a home

Some important things you need to know about purchasing a home

 

Loan approval/finance

When purchasing a property it is extremely important to make sure you have your finance in place.

Whether you are dealing directly with your bank or using a broker, always make sure that you are aware of the key terms of your finance. Some of the main key aspects that need to be looked at and considered are:

  • interest rate
  • penalty interest rates
  • application fees
  • mortgage insurance
  • and early repayment fees

If you are not sure about what is the best deal for you, please consult your accountant or financial adviser.

Deposit

The real estate agent will ask you to pay a deposit when the vendor and purchaser have agreed on a price. The amount of the deposit will depend on the way you exchange contracts. If you decide not to exchange with a cooling off period the agent may ask for a holding deposit. Please keep in mind, that even if you pay a holding deposit the vendor can still accept another offer.

If contracts are exchanged without a cooling off period, the full deposit will be payable and both parties are locked into the contract.

If contracts are exchanged with a cooling off period the agent will ask you to pay at least 0.25% of the purchase price as your initial deposit. This means the Vendor cannot accept another offer. The balance of the deposit will need to be paid on expiry of the cooling off period.

Property Reports

Conveyancing Smart strongly recommend that you order and review all relevant pre-exchange enquiry reports prior to expiry of the cooling off period.
Reports such as:

  • Pest
  • Building
  • Strata Reports

These reports will give you an idea if the property is in a good state and whether it needs work done to it.

Exchange and Cool Off

Contracts must be exchanged to secure the property you wish to buy. Exchange of contracts is, when the Purchaser and the Vendor both sign the Contract for Sale of land and the Contracts are exchanged. If you are signing a contract with a real estate agent you may be signing under a cooling off period so please double check this. Contracts are usually exchanged with a 10 day cooling off period, if this special condition is not annexed to the contract then a 5 day cooling off period will apply.

Stamp duty

When you agree to buy a property you must also pay stamp duty. The amount of stamp duty payable is dependant on the value of the property purchased. Please feel free to contact our office if you would like us to confirm the amount of stamp duty payable on the property.