All Topics / Legal & Accounting / Two 'closing costs' – or three !?

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  • Profile photo of JustAllanJustAllan
    Participant
    @justallan
    Join Date: 2003
    Post Count: 168
    November 20, 2015 - 4:38 pm

    Thinking of buying my first PPoR. I was looking at two websites: one was CBA; the other just one of many that use the same NSW NSW stamp duty calcuation.

    The bank totals up ALL of the following:

    1. $110 – Registration of mortgage (register mortgage on title of property).
    2. $110 – Registration of discharge of mortgage (remove seller’s existing mortgage from property title).
    3. $219 – Registration of transfer (transfer property title from seller to buyer).

    However consumer sites, along with their stamp duty calculators, are only listing two of these.

    Will I be paying all three?

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    November 20, 2015 - 5:26 pm

    Hi Allan,

    I would think the reason the other calcs only use two of them are that this one :-

    2. $110 – Registration of discharge of mortgage (remove seller’s existing mortgage from property title).

    …sounds like it would be paid by a seller of a property, not by a buyer.

    You should likewise NOT be paying that one, until you have made your equity gains and want to move it on in years to come.

    Benny
    PS But then, I am not a qualified adviser, so do check this.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 20, 2015 - 5:52 pm

    You will pay all 3 but the seller will reimburse you for the discharge of their mortgage.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of JustAllanJustAllan
    Participant
    @justallan
    Join Date: 2003
    Post Count: 168
    November 21, 2015 - 1:32 pm
    Terryw wrote:

    You will pay all 3 but the seller will reimburse you for the discharge of their mortgage.

    Glad the government keeps things nice and simple. I was going to ask what’s the point, but that’s just as pointless – LOL.

    Thanks.

    Is anyone aware of a website that lists ALL the costs in buying a (NSW) residential property? Just when I think I’ve covered every expense (in a spreadsheet), I find another site that mentions another expense. And because they don’t call things the same name, I’m never sure if I’ve got everything – or – if I have the same thing listed more than once.

    Here’s my current list of NSW costs to buy a home:

    Property Price
    Deposit Saved
    Stamp Duty (OSR)
    Mortgage Registration
    Discharge Registration
    Registration Transfer
    Conveyancing
    Bank Loan Application Fee
    Pest & Building Inspection (are these done by the same person?)
    Lenders Mortgage Insurance
    Personal Mortgage Insurance
    Bank Document Preparation Fee
    Bank Valuation Fee
    Title Insurance
    Vendor Council & Water Rates (to vendor as a refund apparently!?)
    Buyer Council & Water Rates (ongoing after settlement)
    Legal Searches & Inquiries
    Building & Contents Insurance

    • This reply was modified 9 years ago by Profile photo of JustAllan JustAllan.
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