A Queensland woman says she felt like she had been “slapped in the face” by an unexpected fee she was not made aware of during the process.
Kirsty McConnell was initially advised by a that she would only need $27,000 in 5% rent for a one-bedroom apartment. The apartment cost her $365,000, and with her $45,000 in savings, she thought she would have a significant amount of cash left over.
However, the 26-year-old was then told she would need more than 10% of her down payment ($38,000) because the HECS debt was not factored into her original mortgage application.
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When she went to sign the contract, the broker told her that the lender could not give McConnell a loan without a down payment of $49,000, which was thousands of dollars more than she had saved. Said.
Determined to make a go, McConnell tried to scrape together an additional $4,000. By this point she had already paid her $35,000 because her contract was now unconditional. That left her with $14,000 to pay.
But hidden fees such as testing, transfer fees, and success fees pushed the final amount needed to jump from $14,000 to $18,000. This figure also doesn't take into account the costs associated with moving out of your apartment or any additional council fees once you move into your new home.
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“Based on a conservative quote from my broker, my deposit amount turned out to be much higher than I originally expected, so I'm looking into the additional fees and making sure I have enough money in my account to cover everything. I was very concerned about that,” McConnell said. Yahoo Finance.
“For this reason, I have repeatedly and directly asked my broker if there are any other fees to consider as we move forward with the process.
“He assured me over and over again that that would not be the case. My surprise when the bill my attorney finally charged me to complete the transfer was several thousand dollars more than I had anticipated.” I think you can imagine it.”
Disclosed and undisclosed costs
Ms McConnell knew she would not have to pay stamp duty or lender mortgage insurance (LMI) because she was buying the unit through the federal government's First Home Buyer Guarantee scheme. She had to pay several hundred dollars for building and pest inspections and about $1,500 in legal fees. She also had to pay about $300 to make sure the seller paid all council fees and other fees.
The Queenslander discovered the check ended up being for $600. She said another fee that was not mentioned to her throughout the process was a $1,700 transfer fee and a $500 “emergency surplus” in case the broker's calculations were incorrect.
“I feel like I got taken for a ride by the experts who were supposed to be on my side,” McConnell said. Yahoo Finance.
“To be on the safe side, I recommend getting multiple opinions directly from your broker and bank and setting aside an additional $5,000 or so in fees, no matter what anyone tells you.
“It is already very difficult for young people to enter the property market – soaring house prices, rent prices, general cost of living prices… HECS debt. Not being able to trust the people around you is just a slap in the face. is.”
She said there were also strata fees and other costs associated with taking over the property, but it's unclear whether that was in addition to or included in the $18,000 she had to pay. It wasn't obvious to her. Ms McConnell said she was told by her lawyer that the broker should have clearly explained all the fees and charges involved in the sale, especially the transfer fee, which was never offered during the process.
Get everything in writing
Ryen Horvath, mortgage broker at Australian Home Loans, said: Yahoo Finance There was a lot to digest when taking out a loan.
Horvath said that's why it's important to get everything down on paper and make sure you have all the information in front of you if you need to look at it again.
It also prevents future issues if you incur additional charges that weren't initially listed.
“That's very, very, very unfortunate.” [the fee disclosure] “I was lonely and I would have been very disappointed in her,” she said. Yahoo Finance. “Because things like this destroy people financially. That's not something to take lightly.
“You have to communicate. To succeed as a good broker, you have to have good communication. Even if it's not good news, you have to communicate.
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