Buying a piece of property can be very deceptive to many first timers. This is because they are unaccustomed to the many unpublicized costs they will have to pay together with the main price of the building. If you are such a buyer, who is buying your first property, you may be caught unprepared and this will have an adverse effect on your savings as you do not have the necessary funds.

These hidden costs can appear during the initial purchasing process or throughout your loan tenure. Therefore, it is better to take note so that you can factor them into your budget.

1. Mortgage Insurance
Everyone who takes a housing loan is expected to buy an insurance known as the Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful (MRTT) which will guarantee full repayment of your housing loan in the instance you are unable to repay, like upon your passing or permanent debilitating disability.

2. Stamp Duty and Legal Fees
When you sign the sales and purchase agreement, you will have to pay the lawyer you consulted who will convey any concerns you have to the developers’ legal counsel so that a mutual agreement can be reached. You will also have to pay stamping duty which is a tax needed to make a agreement you sign legally binding. Some banks give you a discount or waiver on the stamping and legal fees when you take a loan from them.

3. Penalties on Delays
It is completely acceptable for banks to charge you a penalty if you fail to submit the necessary paperwork for them to process your loan by the deadline they have set, so make sure you don’t dilly-dally and get your priorities right so you can save your hard earned cash.

4. Maintenance Fee
For those buying a unit in an apartment or condominium, you will have to pay a monthly maintenance fee depending on how classy and upscale your property is.

5. Utility Deposits
When you start electricity, water and internet services to your home, all the providers will require you to pay a deposit.

6. Quit Rent and Assessment Fees
These are taxes you have to pay to your local government for maintaining the amenities around your neighbourhood likes underground pipes, electrical poles, rubbish collection and more. Usually they have to be paid either once or twice a year. Some local councils need you to pay every quarter.


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