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Fees and taxes biggest homebuyer worries

Fees and taxes top the list of the most common concerns among Australian borrowers, according to a survey by a major loan comparison website.

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Finder.com.au analysed 7,000 questions about home loans posted to its forums.

The data showed fees as a top concern for the site’s users, including costs associated with exiting a loan and set-up costs.

The second most common worry centred on taxes, particularly stamp duty and capital gains tax (CGT).

In recent months, finder.com.au recorded almost one question per day about CGT.

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Coming in third place was refinancing and the cost of switching loans.

Michelle Hutchinson, finder.com.au spokesperson, said many borrowers feared being stung by unanticipated costs when changing their home loan.

“It’s great to see that so many Australians are turning to us to find out what they need to know about their home loan and other products. But it also shows that many borrowers are probably too frightened about being stung by fees and taxes to consider switching their home loan,” Ms Hutchinson said.

She also said many homebuyers were confused by tax requirements.

“For instance, many borrowers don't know how to calculate stamp duty costs for a new mortgage, which can easily be found using an online calculator,” she said.

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