What other lender costs might I have to pay?

What other lender costs might I have to pay?

A loan application fee. Before the application has even begun it is likely you will have to pay a loan application fee which can be around $600. It can also be worth finding out whether this fee is refundable if you don’t go ahead with settlement of the loan.

Bank legal fees. These may be charged to you for the time spent by your lender’s solicitor on title search and preparing loan documentation. Not all lenders will charge this fee but be prepared for up to $300 worth of bank legal fees.

Settlement fees or a bank cheque fee. When the purchase is actually processed you will be able to pay settlement fees using a bank cheque from your loan amount. A bank cheque can cost around $15 each.

If you don’t proceed with the loan. You may be charged a fee for not proceeding with your loan application especially if the valuation has already taken place. You may also be charge additional fees if loan contracts have already been drawn up.

Ongoing monthly or annual fees. Depending on the loan you choose you may have maintenance costs to pay over the life of your loan.

Additional repayment fees during the term of your loan. If you happen to have extra funds and want to make an additional repayment be sure to check whether your loan charges you an additional fee to make extra repayments into your loan.

Redraw fees. If you choose to withdraw those additional repayments at a later date you may also be charged redraw fees. Some lenders will include a certain number of fee free transactions before charging you.

Early repayment fees. These may also be called early exit fees or deferred establishment fees and can be charged if you repay your loan in full within five years and discharge the security.

Variation or breakout costs. If you have chosen a fixed rate loan and decide you want to break out of the loan before the end of the fixed period you can be charged a fee usually a percentage of the amount still owing on the loan.