Home Loan Borrowing Costs

The Costs of Getting a Home Loan

Apart from the cost of redirecting mail, furniture removal, connecting power, gas and phone, there are still a number of government fees, taxes, legal fees and lender fees you should be prepared for before you physically move in.

Reducing Your Overall Costs

As your home loan application fees will differ from lender to lender, it is wise to get a comparison on the fees associated with your loan across different lenders. If need help comparing lender fees or would like to talk to a mortgage broker about home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form below and we will return your contact within 2 business hours.


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Following is a list of some of the fees you would typically expect to pay:

Home Loan Application and Lender Fees

Depending on the lender, these fees will differ. For that reason, it is wise to find out what these costs are upfront. Your mortgage broker will help you to understand what they are likely to be and will negotiate on them for you where possible.

Loan Application Fees
Loan Establishment Fees
Service Fees
Valuation Fees
Legal Fees (mortgage related)
Account Transaction Fees
Exit Fees ( or Deferred Establishment Fees)

It is important to remember some lenders will negotiate and even waive part or all of the fees associated with your loan. However, these waivers often result in a higher interest rate or ongoing fees.

Lenders Mortgage Insurance

Lenders Mortgage Insurance protects the lender from any loss which may occur as a result of a default by the borrower. It is doesn't offer any protection to the borrower and is usually required when you're borrowing more than 75-80% of the property's value.

Mortgage Registration, Property and Mortgage Stamp Duty

Legislated taxes and fees differ from state to state and are applied according to the state that the property is in and not the state you currently reside in.

While each state government will require that you pay stamp duty, some groups such as those below are entitled to different exemptions or reductions on stamp duty:

First Home Buyers (All States)
Home Buyers with Concession Cards
Principal Residence Rebates (WA/NT)

Using Local Security to Buy Interstate

If you use a property as security to purchase another property interstate, there are some states that will only recognise a portion of the other state's mortgage stamp duty and charge you additional duty.

Legal Fees

While you can do it yourself, most people use a solicitor or conveyancer to handle the paperwork after the property exchange and the cost of employing one differs depending on three factors:

Property Value
State you live in
Complexity

Building Inspection Reports (and structural)

Building inspections are often a condition of loan approval and are highly advisable irrespective of the lenders conditions. These can cost anywhere between $250 and $500.

Pest and Termite Inspection

While these are often a legal requirement, it is still wise to get them done, expect a cost of between $200 and $400.

More Information

If you would like more information about the costs of buying your next home or home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739for international callers) or email us the form below and we will return your contact within 2 business hours.

More information or help

For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.

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