What other costs are buyers charged?

You will need to factor in other costs such as stamp duty which can vary from state to state. Picture: Getty

Depending on which state you’re buying in and the price of the home you’re purchasing, first-home buyer concessions can shave off many of the extra costs normally associated with buying a home.

In Queensland, there’s no stamp duty payable on any property purchased up to $750,000.

For homes worth $750,000 and above, you can expect to pay duties of around 5% of the purchase price – that’s $40,000 on a $750,000 home. Of course, that extra cost can be capitalised (added onto your overall loan), but it will also slightly increase how much you need to borrow, and thus how much of a deposit you need.

McDonald says there are also other, smaller, fees, for things like conveyancing and title transfers.

“They might add up to around $2500 for a first-home buyer,” he says.

 

Different banks have different lending requirements

Each bank has its own set of rules and standards.

McDonald says your personal financial situation will determine how flexible most lenders will be.

“The more you can give the bank, the better, because the less interest you’ll pay. But it does just come down to individual circumstances. How good is your income, how long have you been in your job? You might have just got a good pay rise, so you can afford to make those repayments,” he says.

“The rates and fees are what they are. It’s just a matter of mining through the options to get to the loan that suits your needs.”