Home loan fees explained
If you’re thinking about buying a new home, these are the first three questions you’re going to want to answer.
How much can I borrow?
What will my repayments be?
What fees will I pay?
A lot of people don’t love maths, so they put these calculations in the later basket. But why don’t we work together to get the answers you need, now. We can also discuss the other fees that might crop up, like:
Application fees. A processing fee from the bank for setting up your loan. Some charge it, while others do not.
Lenders Mortgage Insurance (LMI). This one protects your bank or lender if you can’t pay your loan. It’s only applicable if your loan poses a higher risk to the bank or lender – typically when borrowing more than 80% of the purchase price.
Building and pest inspections. Usually around $300-$600 (depending on your property size) this check ensures your building structure is sound, undamaged by pests, and termite-free!
Ongoing loan fees. Your lender may hit you with a regular charge for maintaining your loan. Some waive it, while others might only apply it for specific functions, such as accessing your loan redraw.
At Homeward Finance, we’re here to shine a light on all the hidden fees and charges of buying a property, so why not get in touch with us today to find out more on (08) 8179 0500 or click the link below.
Loan source: www.loanmarket.com.au
Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.