Alison Fearon from Switcheroo.ie mortgages discusses latest trends in the mortgage market
If you're considering buying a property, it's important to be aware of all the hidden costs involved in the process. While the purchase price is the most significant expense, there are many other costs you need to budget for to avoid any financial surprises. Here are some additional costs to keep in mind:
1. The Valuer's Report– This one is on us!
Lenders will want to ensure that you're paying a fair price for the property, and that the price matches its value. Usually, your lender will instruct a valuer to assess the property's value, and you will need to pay for the report. The cost can range from €175 upwards but…
…for MyHome customers that register with Switcheroo.ie before the year end 2024 and use the Special offer Code of FreeVal, Switcheroo.ie will pay for this cost at the time of Loan offer.
2. Stamp Duty
Stamp Duty is a government charge on your home transaction. The amount you'll pay depends on the price of your house. If you're the average home buyer purchasing a house under €1 million, your Stamp Duty will be 1% of the value of your home. If you're purchasing a home over €1 million, your stamp duty will be 2% of the value of your home over n€1 million and a new rate of 6% for the portion over €1.5M was brought in with the recent 2024 Budget.
3. Legal Fees
After you receive your "Approval in Principle," you will need to choose a solicitor to help you with the legal paperwork. Your solicitor will conduct all the legal tasks to transfer ownership of the property to you. Legal costs can vary depending on the price of the solicitor, your home, and the area you're living in, so shop around to get the best deal.
4. Mortgage Protection (Mortgage Life Insurance)
Mortgage Protection is insurance that assures your lender that if you die before you finish your repayments, your mortgage loan will be repaid. It's required by the CCPC for all applicants that purchase a non-investment property unless. Prices will vary depending on your personal circumstances, so it's a good idea to shop around for the best deal and as Switcheroo covers the whole market that’s a good place to start.
Home insurance is an essential add-on for any homeowner. It covers the cost of damage to your property from events like fires or floods. Prices will vary depending on the policy type, the rebuild value of your property, and your location. If you buy an apartment the insurance is covered under the block policy/management fee. but you should get contents insurance for your own belongings.
Switcheroo.ie offers a 10% discount across 16 different home insurers
5. Property Tax and Other Home Buyer Costs
In addition to the purchase price, there are other compulsory charges that come with owning a home. These include waste charges and property tax. It's a good idea to prepare to budget for these expenses into your monthly/yearly spending.
6. Surveyors' Report
The bank wont require a survey unless the valuer flags that there is an issue, however we would recommend a survey for all second hand homes in case there is something underlying the property that is not obvious. A home is the biggest purchase you will ever make, so getting a survey done is well worth it in case there are issues with the property that you cannot see. These cost €750 – €1,000
7. Utility Costs
If you're setting up utility accounts for the first time, you may need to factor in the price of a deposit. If you already have utility accounts, you probably know the costs associated with electricity and gas. You may have previously been in a flat share where these were split so factor in what the whole cost would be
As you can see, buying a property involves more than just the purchase price. It's important to factor in these additional costs when budgeting for your purchase. Doing so will help you avoid any financial surprises and ensure that you're prepared for the full cost of homeownership. If you need any help finding out what you can afford, go to switcheroo.ie to get free, professional and personalised advice.
If you are considering this or any other mortgage product, be sure to get professional advice and register at Switcheroo.ie
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