What are bank fees?
When taking on a mortgage or home loan your bank or lender might charge you some fees for opening your account and settling your loan.
Also called establishment, start-up, or set-up fees. These are a one-off charge at the start of your home loan application, and can range from $200 to $700, depending on the amount of the loan. Some lenders may waive these fees as part of a special promotion.
Often your lender will engage a valuer to do an independent valuation, this can be dependent on the LVR of your property. A valuation of the property helps lenders ascertain if the amount you are borrowing and the size of your down payment are appropriate. Valuation charges can vary depending on the location of the property, but typically costs between $100 to $300. Where the LVR is low, they may waive the requirement for a valuation and use the purchase price in their calculations.
On Own My Own Home we’ve assumed bank fees of $900.
This page was last updated on 19 September 2019.