home loan costs involved: key fees to expect

What you pay upfront

Beyond the deposit, lenders often charge an application or establishment fee, plus a valuation to confirm the property’s worth. Government mortgage registration and transfer charges may also appear at settlement. If your deposit is under 20%, budget for Lenders Mortgage Insurance (LMI).

Ongoing and rate-related charges

The headline interest rate isn’t the whole story. Watch the comparison rate, which blends interest with standard fees. Some loans add monthly or annual package costs, offset account fees, or redraw charges. A rate lock can protect you before settlement, usually for a fee.

• Break costs on fixed loans if you repay early
• Discharge and settlement agent fees when closing
• Late payment and default charges
• Refinance and new valuation costs
• Legal documentation fees

Smart ways to minimise costs

Compare like for like using the comparison rate, ask lenders to waive upfront fees, and weigh package fees against genuine savings. Consider a bigger deposit to avoid LMI, and always read the credit quote and key facts sheet before signing.