1300 36 36 99
Assume a purchase price of $300 000 and a loan of 95% of the purchase value. Loan = $285 000.
The initial deposit on contract signing assume to be $500 and upon finance approval within 14 days you need to pay the balance of deposit of $11 500. Total deposit paid = $12 000.
Here is a simple flow chart depicting the common flow of funds for the purchase of your home.
| Steps: | 1. | Initial deposit paid to agent | $500.00 |
| 2. | Upon finance approval, balance of deposit paid
to agent |
$11 500.00 | |
| 3. | On settlement day, bank pays vendor | $285 000.00 | |
| 3. | Buyer pays the difference on settlement
to vendor |
$3 000.00 | |
| Sale Price | $300 000.00 |
The vendor receives the sale price less the commission charged by the agent. The agent’s commission is taken from the deposit funds paid to the agents trust account. Please note that this is a simplified model of a real life situation. The bank normally takes out government stamp duties and search fees and will also deduct its own fees, if any, from the proceeds of the loan at settlement. Your solicitor or legal representative will confer with the bank’s solicitors prior to settlement to finalise the amount of funds to be available at settlement. Then you will be informed by your solicitor as to the exact amount required for settlement.
Remember, with a friendly and experienced Multi-Choice consultant on your side it will be simple.
Talk to a Multi-Choice Consultant today
No cost => Awesome. Very helpful and seem to give good, pertinent, current advice. Wonderful service and very sweet unexpected gift hamper with all its goodies arrived after we’d moved into the new place.
K & S G-P 17 May 2012