What Fees To Expect For A Fixed Rate Home Loan

Feb 26
2010
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  • Typical application fee: $600 to $800 (May be less if you already have a loan).
  • Be prepared to pay a higher application fee if you are buying a unit or property off the plan.
  • If you plan to repay or refinance your loan within 4 years from the date of first loan drawing, you may also be slugged a “Deferred Establishment Fee”. This fee can vary from $700 to $2000 depending on the lending institution.
  • Loan service fees: Usually $8 to $10 per month.
  • Settlement attendance fee, usually $150 to $350.
  • If you are changing lenders, you will also usually have to pay a security discharge fee of between: $350 and $1000 for the privilege.
  • Be prepared to pay big if you want out of a fixed rate loan early. Lenders usually will not give any leeway to contract breakers. Picking the direction of home loan rates can be tricky. Just look at the historical rates for the last 50 years.

This is just a snapshot of the fees you can expect when taking out a new fixed rate home loan or changing from a standard variable home loan to a fixed rate home loan. Be sure to get a comprehensive list of fees from your lender or mortgage broker before you sign on the dotted line.



Mortgage Choice

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Written by Jeremy in: Australian Home Loans, Historical Rates, fixed rate home loans, reputable mortgage broker, understanding mortgage loan documents | Tags: , , , ,

Transaction Account Home Loan Package

Apr 30
2009
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Unfortunately my much wished for defection from home loan copy-cat ism of one of the big four Australian Banks has failed to materialise, at least in this short term. I trust my source, I think it will only be a matter of time before you will be offered a distinct choice among the big four.

In the mean time if you are hunting for a new loan, ask your mortgage broker about the various banking/home loan package deals available. Many packages offer savings of up to .7% on standard variable loans and lines of credit. The catch is the annual fee, which sometimes is in excess of $350. However when you consider the savings in transaction account fees and loan interest if you are borrowing more than $250,000 you should be well ahead.

Before you dump your current lender, It would be judicious to inquire about transferring your existing home loan to a package with them. You could save thousands in fees and charges generated by a transfer of lender. I would also consider using some mortgage checking software to check the accuracy of your loan and credit card statements before you cast your current lender adrift. Please also read your current loan documents and try and get an understanding of what you currently have.

Be careful what you wish for? The chances are you will get it!

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Written by Jeremy in: bank loan statement checking software, major mortgage lenders, mortgage checker software, understanding mortgage loan documents | Tags: , , , ,

Check Your Mortgage Documents

Apr 16
2009
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Check Your Mortgage Documents

Unfortunately, I know someone who is having to sell their home at the behest of a Lender. This is real mortgage stress.

The lender has demanded a loan be repaid or refinanced within 30days. So much for the mortgage holiday deal?

Their problem stems from having a cocktail of home loans on their residential property. One of their loans is a line of credit. Unfortunately they did not read their mortgage documents thoroughly. By not keeping their line of credit mortgage active and under it’s limit, they have trigged the lenders get out clause. If they can’t refinance the line of credit, the other home loan will also have to be refinanced. They had something called an all monies contract.

I have referred them to a mortgage broker who assures me he can help them. However, I think this situation highlights the need to read the fine print of your mortgage documents and get advice if you don’t understand what you read.

In the current economic climate, lenders will be inclined to manage their risks quite harshly. So please get your mortgage doc’s out and get an understanding quickly.

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Written by Jeremy in: Australian Home Loans, Mortgage Broker, Mortgage Payment Holiday, debt consolidation, home equity loans, mortgage refinance, mortgage stress, refinance home loan, understanding mortgage loan documents | Tags: , , , , ,