When taking out a home loan, it’s important to consider all the associated fees and charges. Your home loan manager will explain these in further detail. The following are simply some home loan fees you will need to consider and budget for.

Application Fees

Application and lender fees also known as an establishment fee will differ from lender to lender but is charged to cover the initial cost of setting up the home loan application. It typically includes loan application fees, loan establishment fees, valuation fees and service fees.

Lenders Mortgage Insurance

Lenders mortgage insurance refers to insurance that will cover the lender in case you are unable to pay your loan, it does not cover you the lender. Lenders mortgage insurance is usually required if you are borrowing more than 75-80% of the property’s value.

Stamp Duty

Stamp duty varies as legislated fees and taxes differ from state to state, while each state requires you to pay stamp duty there are exceptions and reductions so it is important that you do some research.

Building and Pest Inspections

Building inspection reports are often a requirement of the lender prior to approval pest inspections are not always a legal requirement but something that is highly recommended.

Legal Fees

Legal fees cover the cost of preparing your loan documents and processing of the purchased property by a conveyancer and solicitor fees.

Discharge Fees

Also known as an exit fees, this is payable at the time of discharging your loan and covers the costs of preparing the loan documents.

Account-Keeping Fees

You may incur a monthly fee which is usually added to your loan.

Package Fees

This fee is incurred if your loan is packaged with other products such as a credit card facility and savings account.

Account Transaction Fees

This is a usage fee and charged for certain transactions such as redraw.

Switching Fees

This is incurred if you switch home loan products within the same lenders and cover’s the lender’s administration cost.