You may find the following topics useful when considering a home loan.

Stamp Duty

Is a tax based on the purchase price of the property, and will generally be your largest
expense. It is payable anywhere from the day of settlement to 3 months after exchange of
contracts, depending on the State or Territory in which you make the purchase. Stamp Duty
is paid to the Office of State Revenue. Some first home buyers may be entitled to a
concession on Stamp Duty. Speak to your solicitor to see if you qualify. The cost of
Stamp Duty varies between States and Territories.
NSW Office of State Revenue Sales Tax Rates

Registration Fees

These are paid to the Land Titles Office when you register any document relating to your
property. You should talk to your solicitor or the Land Titles Office in the State or
Territory in which the property is situated to calculate the cost for these fees.

Goods and Services Tax (GST)

This tax is not payable on bank charges and fees, or if you're buying an established property.
GST may apply if you are buying a new property. GST applies to many other costs of sale including
valuation and inspection, real estate agent fees and auctioneers fees irrespective of whether it
is a new or established property.

Mortgagee Insurance

Lenders' Mortgagee Insurance is generally required if you borrow more than 80% of the value of
the property for the majority of loans. The cost of this is added to the loan.

Lenders' Mortgage Insurance gives you the opportunity to purchase a property with a smaller
deposit.

Lenders' Mortgage Insurance protects the lender (not you, the borrower) should you default and
the property is sold for less than the outstanding amount on the loan. You remain liable for any
amount owing under the contract even if the mortgage insurer has paid that amount to the lender.
Even though it is the lender who is the beneficiary, it is you who pays the one off insurance
charge.

Capital Gains Tax (CGT)

If you are considering buying an investment property, you will need to be aware of the
implications of CGT should you ever sell it. Gains made from the sale of
investment properties are generally subject to this tax.

The amount of tax depends on a number of factors including whether you have lived in the
property and the period of time for which you held it. For example, the purchase and sale
of a property within a short period of time may mean any profit you make would be included
in your ordinary assessable income and taxed at marginal rates.

A number of issues need consideration when calculating how much tax you may have to pay.
You should consult with your tax adviser or accountant.

First Home Owners Grant Scheme (FHOGS)

The FHOGS is a joint Australian and NSW Government initiative
to help first home owners. The grant provides a $7000 benefit to eligible applicants.

Eligible first home owners can receive the grant regardless of their income, the area in which
they are planning to buy or build, or the value of their first home. The grant is not means
tested and no tax is payable on it.
Details of FHOGS