No-Fee Home Loans

Looking for a no-fee home loan? Read about where to look and how much you can save when you compare with Savvy.

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, updated on August 8th, 2023       

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No-fee home loans were once as common as unicorns, but these days they’re far more widely available. You can now choose from a variety of different lenders in Australia with Savvy, so it’s just a matter of knowing where to look and how to qualify. You can find out how much you can save here by comparing the best no-fee loan options available before you decide on your mortgage.

The benefits of no-fee home loans

Save more on your loan

Forget loan establishment fees and ongoing account-keeping fees: you can potentially save thousands of dollars over the life of your loan by comparing offers here.

Low fixed or variable interest rates

You have the flexibility to choose either a fixed rate loan or a variable interest rate loan, giving you the ability to tailor your loan to your needs.

Low deposit options

Loans with an LVR of 90% or even 95% are available with some of our lenders, so not only will you save on fees, but you may not need to pay as much deposit.

Extra repayments permitted

Pay off your loan sooner and reduce your interest payments even more by making lump sum payments on your loan, shortening your loan in the process.

Offset accounts available

Adding an offset account to your loan can help you save even more by offsetting any savings you have against the principal sum you borrow, reducing your payable interest.

Easy application and fast approvals

Apply for your no-fee loan whenever is convenient for you with a safe and secure loan application process, with fast approvals always possible.

How to maximise your chances of getting a no-fee loan

No fee home loans explained further

What fees are often charged on home loans?

  • Application/loan establishment fees – these are often in the region of $200 – $600
  • Monthly administration costs – (also known as home loan monthly fees, loan service fees) – between $10 and $30 per month is normal
  • Property valuation fees – the cost of your lender sending a valuer to look at your home and give an agreed market value – often between $250 and $400
  • Legal fees – for preparing formal loan documents – often between $200 and $400
  • Settlement fee – for finalising a refinance or a top-up loan, around $225
  • Annual package fees – frequently charged instead of monthly fees, but often in the region of $250 and $400. These package fees can sometimes replace account fees on other bundled products such as credit cards and transaction accounts.
  • Loan discharge fee – another fee charged to discharge your mortgage – often around $75 but can be as high as $800

Can I refinance my home loan to a loan with no fees?

Yes – there can be many benefits to refinancing your existing loan, such as to take advantage of lower fees and additional cost-saving features like reduced interest rates.  However, if you are looking at refinancing an existing loan, you shouldn’t look at fees and interest rates in isolation.  If you take out a loan with a slightly higher interest rate just to avoid paying any fees, you may end up paying more overall. 

Also, beware when lenders advertise ‘no ongoing fees.’  This may not mean there are zero fees in total, as the fees charged may be a one-off (but it’s still a fee you have to pay).  For example, a lender may advertise a ‘no-fee’ loan which only applies to variable rate loans, with a ‘fixed rate fee’ of several hundred dollars charged for fixed-rate loans. 

How much can I save by going for a no-fee loan?

Ongoing monthly fees may seem like a small cost, but they can add up over the life of the loan.  For example, an account keeping fee of $15 per month will add up to $180 a year, or $5,400 over the life of a 30-year loan.  A $365 per year account keeping fee adds up to $10,950 over 30 years.  You will save all these costs if you opt for a no-fee loan.

Is it better to get a no-fee home loan or a lower interest rate?

Ideally, you should try to find a loan with both.  Luckily, Savvy makes it easy to compare no-fee loans to make the journey easier for you. 

The chart below compares the cost of a home loan with no fees, the same loan with fees, and the same amount borrowed with no fees and a lower interest rate:

Type of home loan Based on loan of $350,000 - interest rate and fees Total interest and fees payable over 30 years
No fee loan
2.8% p.a. interest | $0 fees
Same loan with added fees
2.8% p.a. interest | $375 establishment | $360 annual fee
Loan with lower interest rate and added fees
2.5% p.a. interest | $375 establishment | $360 annual fee
Loan with lower interest rate and no fees
2.5% p.a. interest | $0 fees
$129,817 | Overall saving: $27,546

*Calculations based on fortnightly loan repayments over 30 years

As you can see from this chart, if you get a no-fee loan, you could save yourself thousands in loan fee charges, and by using Savvy to compare lenders, you can also find a loan with the lowest possible interest rate too, so you can enjoy the best of both worlds.

More no-fee home loan queries answered

Does a lender have to disclose all their home loan fees?

Yes – lenders in Australia are legally required to disclose their home loan fees in their offer of credit to you. They must be included in your loan contract as well.  Lenders are also required to advertise their comparison interest rate on home loans. The comparison rate includes the cost of interest plus any fees.

Do all lenders charge fees for additional loan features?

No – many lenders offer additional loan features like offset accounts and redraw facilities as part of their loan package.  However, some lenders do offer a ‘no frills’ home loan with no ongoing fees, but typically add on an extra 0.1% p.a. interest rate if you wish to add on more loan features, so you only get to pay for the loan features you will use.

Can my lender offer me a no-fee loan, but start charging me fees later on?

No – the fees you’ll pay for a particular home loan must be disclosed when you’re first offered the loan.  Be sure to carefully read your loan contract to make certain you’re fully aware of all your loan conditions and ask your lender questions before you sign if you’re not sure what anything means.

Is there a legal limit on the fees a lender can charge?

No – lenders can charge whatever fees they like as long as the charges are disclosed to you at the time you accept the loan terms.  Luckily, home loan comparison sites such as Savvy allow you to compare loans side-by-side to get the most competitive no-fee mortgage rate available.

Can I get out of paying government fees on my home loan?

No – charges like stamp duty and land title registration fees must be paid, and your conveyancer will prepare a loan settlement statement for you which will detail exactly what government fees have been paid on your behalf.  The exception to paying stamp duty is if you qualify for an exemption as a first home buyer, so check your state government website, as stamp duty exemption rules for first homebuyers change regularly.

Are no-fee loans available to first homebuyers?

Yes – there are no-fee loans available to first home buyers, but in many cases the lender will ask for more than the standard 20% deposit to take advantage of the lowest no-fee home loan rates.  These loans tend to have tighter eligibility criteria and are offered to borrowers who present the lowest risk.

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