11 July 2017 Being prepared to buy When buying a home you should factor in a number of costs on top of the purchase price - with Luke Huysmans Transcript: When buying property, being unprepared can lead to unexpected expenses or, have you scrambling to piece things together at the last minute. Today we're hitting the streets to find out what people know about purchasing property. What do you know about the term stamp duty? I wouldn't know much about it at all. Not a whole lot. Have you heard of lenders mortgage insurance or LMI? Um I have, but I don't know what it is exactly. That's a lot of big words there. No. No clue. How about a conveyancer? Do you know what they? No I've got no idea what a conveyancer does. I don't really know exactly what it is. Here's a list of things to keep in mind when buying your first home. Stamp duty is levied on most property purchases in Australia. The amount will vary depending on the purchase price and which state or territory you live in, but it needs to be paid on settlement. So be sure to include it in your budget. If you're borrowing more than eighty percent of the property's value, you'll usually need to pay lenders mortgage insurance or LMI. LMI is a form of insurance that protects the home loan provider in the event that the borrower defaults. Saving up for a larger deposit could help you get around this requirement. Conveyancing is the process of transferring the legal title of the property from the seller to the buyer. In the week before settlement your conveyancer or solicitor will prepare a statement of adjustments. This document covers the adjustments of any rates, taxes, rental and owners corporation fees applicable to your purchase. Your home loan specialist will factor in stamp duty for you when working out your potential borrowing capacity. Buying your first home can be an incredibly exciting time, but it can also be a confusing process. So be sure to consult with your home loan specialist who can use their skills and experience to help guide you through your purchase.