Typical Home Loan Fees
All home loans have a range of application fees, government fees and other charges. Here are the main ones:
Loan application fee
A loan application fee is charged by the lender to establish the loan. These vary from lender to lender and cost between $250 and $1,200. In some cases lenders will waive this fee.
Property valuation fee
A lender may charge you a property valuation fee to get the property independently valued. This is often carried out before loan approval and will be charged to you even if the loan is not approved. Sometimes the fee is covered by the loan application fees.
Annual and ongoing fees
This is a fee charged by a lender for the duration of the loan. This varies from lender to lender and is between $5 and $40 per month.
Lender’s mortgage insurance (LMI)
This is an insurance policy that you have to pay to protect the lender for loan repayment default. This insurance is mandatory if your loan is more than 80% of the property value. The fee charged is typically a percentage of the loan amount.
We’re here to help you
Dealing with banks can be a stressful experience but rest assured that our mortgage broker based in Glenelg (but our mortgage broker services the entire Adelaide Metropolitan area) can help you make the right decision about your mortgage. We will guide you at every stage of your loan process.
Contact us on 08 8376 0455 or drop into our office at 593 Anzac Highway, Glenelg SA 5045.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.