The purchase price is one number. The cash you need to get to closing is another. Here is a practical starting budget using a $300,000 purchase.
Start with a $36,000 planning target
For this example, set aside 5% of the purchase price for legal costs, 5% for a down payment and 2% for miscellaneous expenses. All three percentages are calculated on $300,000.
- Legal allowance · 5%: $15,000
- Down payment · 5%: $15,000
- Miscellaneous allowance · 2%: $6,000
- Illustrative upfront subtotal · 12%: $36,000
These are planning assumptions, not a legal-fee quote or a promise of 95% financing. The down payment is part of the purchase price. Under this illustration, the remaining purchase-price balance would be $285,000, subject to lender approval.
What could change that figure?
Ask your attorney for an itemised closing estimate covering applicable VAT on the transfer and mortgage, professional fees, VAT on services and disbursements. Those charges are not separately calculated in this $36,000 subtotal. Ask your lender about valuation, insurance and any arrangement costs; the miscellaneous allowance may not cover them all.
First-time buyers should check whether they qualify for relief before assuming a tax saving. The Department of Inland Revenue provides a first-home exemption application process. Eligibility and approval need to be confirmed for your purchase.
Build your own cash-to-close plan
Keep moving, repairs and an emergency reserve separate from your closing funds. Confirm when each payment is due and whether a contract deposit will count toward your down payment, so you do not accidentally count the same money twice.
My next step would be to get you started with prequalification, then match the search to your approved budget and the cash you are comfortable using. Replace every estimate with a written figure before committing.
