When taking out a home loan with your chosen lender, there are many associated fees. It is important you understand these home loan fees to ensure you avoid the ones which are unnecessary and reduce the overall cost of your home loan.
When applying for your home loan, you will encounter a range of costs you perhaps did not know about. Some of these costs are upfront, some are ongoing and some you will encounter as you end your home loan.
In addition to the above up-front costs of your home loan, you may also incur some ongoing costs which cover certain features of your loan.
Upon the settlement of your home loan, you may encounter the following costs:
In addition to the home loan fees applied by your lender, you will also be liable to pay stamp duty and mortgage registration fees by your state government.
A stamp duty fee is assessed by your state government and is a tax that is payable when you purchase a property in Australia. The stamp duty cost is based on the selling price of a property and is calculated by the relevant state government. If you’re a first homebuyer, you may be eligible for a concession.
Furthermore, you will also be assessed a once-off mortgage registration fee that typically costs between $145-$187. This fee is charged by your state’s Land Titles Office to register the mortgage on the property’s certificate of title.
In order to reduce your home loan fees and limit the cost of your mortgage, you should keep a close eye out for promotions from lenders. Lenders will often waive an array of fees to gain you as a customer so be proactive and explore the home loan market regularly.