What Fees are Involved in a Home Loan?

For a property purchase:

Stamp duty & transfer:

These are charged by the state government and will vary depending on your purchase price. Another government fee is the registration of your mortgage - this is a fixed cost, charged by the state government and is relatively small.

Loan application fee, loan settlement fee, lender's legal fee:

These fees are charged by the lenders and you may have to pay a combination of these, or just the one.

Legal costs:

You will need to engage the services of a conveyancer or solicitor to legally transfer ownership of the property you are buying.

Lenders Mortgage Insurance:

LMI is a potential once off cost unless your deposit size is at least 20% of the property value, plus all of the purchasing and borrowing costs.

Ongoing loan fees:

Your loan may have a monthly or an annual fee depending on the loan product selected.

Loan Refinance:

A refinance loan may involve an exit fee in the form of break costs if a fixed rate loan term is broken or a discharge fee charged by the outgoing lender.

Building / Pest Inspection:

You may require a building and/or pest inspection when purchasing a property which would incur a cost. These processes are optional (but usually recommended).

 

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