A comparison rate is designed to help you understand the overall cost of a home loan, including fees and charges from the lender.

For example, a 3.50% interest rate at Lender A with high fees has a comparison rate of 3.85%. Lender B’s higher interest rate of 3.65% with lower fees has a comparison rate of 3.75%. This means Lender B is the cheaper option even though the interest rate is higher.

It is important to bear in mind that the comparison rate will be based upon a standard set of criteria which might not align with your circumstances.

Building insurance helps to cover the cost of replacing a home if it’s destroyed, or the cost of repairing damage to the physical structures of a property. 

Building insurance usually covers permanent fixtures and fittings such as inbuilt kitchens, garages/sheds and fences from events such as fire, flooding (specific causes), storm, impact (e.g. from a car accident or falling tree), explosion, riot, vandalism and earthquake. 

A rental bond (also known as a residential bond) is an upfront payment made by the tenant before moving into a rental property. The landlord must lodge it with Consumer and Business Services (a receipt is given to the tenant), and, at the end of the lease, it is returned to the tenant if there are no claims for outstanding rent, damage, cleaning, or other costs.

How much bond will I need to pay?

The cooling-off period is the final stage of buying a home in which you can withdraw from the purchase of the property without legal or significant financial implications, even after signing the contract. Cooling-off periods are usually only available to buyers (not sellers) and are designed to protect them in case last minute issues arise. Reasons for withdrawing may include:

Conveyancing charges cover the transfer of property’s title from the vendor (seller) to you. Conveyancing charges are usually estimated by the conveyancer and can range between $500 and $2,000. 

A Certificate of Title is a legal document which identifies the owner and any encumbrances or easements associated with a particular parcel of land. Each time ownership of a property changes, the Certificate of Title is amended to reflect new ownership.