Getting ready to sell your home? Preparing your finances is essential.

Why should you prepare your mortgage for sale?

So, you’ve decided to sell your home. Painting the house, cleaning up the garden, and decluttering for that all important ‘open for inspection’ are all high up on the to-do list. 

But what about preparing your finances?

A Mortgage Health Check in the lead up to selling your home will help you avoid costly mistakes. 

AMortgage Health Check will help you understand:

1. Whether your mortgage increase or decrease because of the move and what impact this will have on your monthly repayments

2. If your current lender and mortgage will best meet your future needs

3. How much equity you have in your home today and how much you’ll have after you move

4. If you can cover the 10% deposit required on your new home

5. The overall financial impacts of moving to a new home

Understand your pre-sale equity

Working with your sales agent to understand your property value based on current market conditions will help you to determine your ‘sell price.’ This  will help you understand how much cash you’ll have to invest in the new home.

On top of your sell price you’ll also need to consider the cost of selling your home, including:

• Marketing and listing expenses

• Agents commission

• Auctioneer fees

• Conveyancer fees

• Lender exit fees

• Other current debts.

Estimate your future equity position

Once you understand your sale price and costs associated with selling your home you’ll have a starting point to determine your financial position to make decisions about where you’ll live next. 

If you’re looking at buying a new home, you’ll need to think about not just your ongoing loan repayments but associated costs including:

• *10% deposit

• Stamp duty and government fees

• Loan establishment fees

• Valuation fees

• Bank fees and charges

• Conveyancer fees

• Moving and relocation costs

• Council rates and insurances.

*while the deposit from the sale of your property is in escrow, you will need to have the deposit for your new property ready and available. The deposit is 10% of the purchase price (unless negotiated) and is generally due within 14 days of signing contracts.

Don’t get caught out and underestimate the costs associated with buying and selling your home. Speak with Brock Lynch Liberty Adviser to get a Mortgage Health Check and prepare your finances today.