Lifestyle
Most of us know that buying a home can be very expensive. But what might catch you off guard are the additional expenses that come with the home price.
If you're planning to take out a loan to buy your first home, you've likely laid out a budget. You've probably calculated the price you can afford and determined the down payment size that fits your financial picture. But it's important to consider all the other costs that go unmentioned in home-buying discussions to avoid exceeding your financial limits.
In this article, we’ll share the hidden expenses that come with buying a home. Keep reading until the end to discover how we can support you in managing these expenses!
- Real estate agent commission
The first step to buying a home is finding one! Some folks like to search by driving around and looking for "House for Sale" signs. But sometimes, it isn't easy to find what you want. That's when a real estate agent can help.
A real estate agent acts as the bridge between the seller and the buyer. Their job is to facilitate the sale between the two parties in exchange for a predetermined percentage. This is the real estate agent's commission. Usually, the commission is between 1% and 2.5% of the house price and is outlined in your agreement with the agent. You can skip paying this fee if you choose not to work with an agent.
- Real estate appraiser fees
Let's say you've found your dream home. Would you buy it right away? Of course not! What if the house is priced above its actual market value? This is where the real estate appraiser steps in. An appraiser determines a property’s market value by considering factors like the building's age, location, house condition, and more.
If you want to secure a housing loan from a bank, an appraisal is required to protect both you and the bank from overpaying. While the bank appoints the appraiser, you're responsible for paying the fee. So, make sure to set aside around 60-100 JOD. If your loan exceeds 100,000 JOD, 2 appraisers will be required instead of one.
- Home inspection fees
We know you've checked out the house yourself, but sometimes that's not enough. What if you encounter a major issue in the house after you've bought it? It would be too late to turn back. Even though hiring a professional to inspect the property will cost you some money and isn't mandatory, we recommend it. This step could save you a lot of money if issues are found with the electrical, plumbing, air conditioning, or other systems.
If the inspection uncovers problems, you have options: negotiate for a lower price, ask the seller to make repairs, or look for another home.
- Mortgage registration fees
When you take out a housing loan, the bank requires the house to be used as collateral. This means that if you can't repay the loan, the bank has the right to take possession of the house and sell it. And this is where the mortgage registration fee comes in. You need to pay this fee upfront to the Department of Lands and Survey to finalise the mortgage process.
- Ownership transfer fees
The ownership transfer fee is paid to the Department of Lands and Survey. This fee is necessary to transfer the ownership of the house from one person to another. It's when the legal owner of the property officially hands it over to the buyer, completing the sale.
The ownership transfer fee is calculated based on the home's value. The homeowner may specify that the buyer covers this fee, or both parties could agree that the homeowner pays it, or they may split the cost.
In addition to the ownership transfer fee, you’ll also pay fees to transfer the ownership of the water and electricity meters into your name.
- Home report fees
The Department of Lands and Survey will appoint an expert to visit your home and write a report detailing its specifications. This process comes with a 25 JOD fee.
- Stamp duty
You’ll also need to pay a fee for the stamps on your loan contract, required by Jordanian stamp duty laws. The fee, which is 0.003% of the loan amount, is paid at the Ministry of Finance.
- Furniture shipping and installation costs
At Bank al Etihad, we understand that every new home comes with additional costs. One expense that often catches people off guard is furniture shipping and installation. After all, your furniture won’t just appear in your new home on its own! You’ll need to hire movers and installers to help with the process, and these services come with their own costs.
We know that all these expenses can quickly add up and make you feel overwhelmed. But don’t worry because we’ve got your back! With our Housing Loan, you can enjoy repayment terms of up to 25 years and generous loan amounts for everything from purchasing a home to making home improvements and more. And if you transfer your salary to us, we’ll waive the commission and mortgage fees for loans over 40,000 JOD.
So, while moving costs might seem like one more thing to worry about, we’re here to help you manage it all and make sure that your transition to your new home is as stress-free as possible.
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