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? Deposit when submitting an offer to buy?


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You negotiate the deposit, most banks want at least 5%, but any less than 20% attracts Lenders Mortgage Insurance, which is a one off payment based on the purchase price which could be added to the mortgage using an equation to make sure you dont over capitalise, its complicated, you really neeed to talk to a broker, here is a link to Commerce WA

 

http://www.commerce.wa.gov.au/consumer-protection/real-estate-purchase-price-deposit-and-finance-term

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Thanks for the replies- yes I understand the whole mortgage situation Im asking about when you submit a formal written offer to an estate agent.

To clarify- do you give the estate agent a deposit along with your offer to show you're 'serious' or not? If so how much is 'normal'

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Hello Wee-Me

 

 

When we submitted our formal offer I think we had a few days to pay $5,000 into the real estate agents bank account, this was once our formal offer was accepted, that was obviously then calculated into our final payments of stamp duty, 20% deposit, rates, water rates, settlement agents fees two days before final settlement.

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I would only like to put $1000-$2000 on the table, at least this way if things dont go as planned you can move on to the next house without waiting to get your money back on the first

 

 

I dont think you would be able to do that. Just remember to get written into sale contract subject to surveyor report or basically you will be buggered.

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Thats what I mean, if theres something seriously wrong on the surveyor report or even if you dont get finance for the balance, you can pull out and eventually get your money back, remember, your money goes into trust, it cant be instantly refunded, so If you tie all your money up on one property and it goes pear shaped, you cant move on until your cash is refunded, one thing I like about Aus, no gazumping, once you have both signed the OTP you are locked in, subject to.............of course

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  • 1 month later...

Just a warning, Perth house buying is not like the UK. You can't just walk away from a written offer, (does depend on what is written). I have known people to sue for damages when people have changed their mind. Be sure before you put an offer down, and read the small print.

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  • 2 months later...
Great at news, we're considering buying rather than renting as we know the area that will fit with work and schools as well as offering us good access to the beach and traveling farther afield.

 

If you need a mortgage broker, I can give you details of a awesome guy! Been using him for years, nicest bloke, over the top helpful, honest!

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How long does the process take, offer accepted.......... to moving in, roughly, is it 3-4 months similar to uk?

 

Ours was 2 weeks as the owners had already bought and were living elsewhere and were servicing two mortgages. We were happy with that as our stuff was in storage and we were living with rellies and needed to move into our own place asap. But it something that you negotiate when you make the written offer.

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Not sure if its mentioned above, but if you dont have at least 20% deposit you get nailed for Mortgage Lenders Insurance, which could be up to about $30k lumped on your mortgage, and if you keep the mortgage for the full 30 years, thats one hell of an expensive insurance policy $30k over 30 years...................ouch.

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Not sure if its mentioned above, but if you dont have at least 20% deposit you get nailed for Mortgage Lenders Insurance, which could be up to about $30k lumped on your mortgage, and if you keep the mortgage for the full 30 years, thats one hell of an expensive insurance policy $30k over 30 years...................ouch.

 

 

It's also not insuring you, it's insuring the bank against you.

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Hello

 

When you place an offer you can negotiate the deposit to the Real Estate agent but based on experience this is around $2000 - $5000. Ensure when you are signing the offer that it is subject to finance, pest and building inspection which will ensure if any of these fall through you will be able to get your deposit back.

 

If you have any further questions please don't hesitate to PM me.

 

Thanks

 

Abby

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