Loan application and establishment fees in Australia
Don't let loan application and establishment fees catch you by surprise - Compare the fees of different lenders before applying for a loan
Loan application fees are charges that are typically levied when you first apply for a loan.
This fee covers the lender’s costs of assessing your application, such as credit checks and verifying your income and employment.
These fees are usually a one-time charge and can range from a few hundred dollars to several thousand dollars.
However, depending on the lender and the loan amount.
There are various fees business applies for and establishes a loan.
These fees can include a variety of charges, such as:
Application fee:
This is a fee charged by the lender to cover the cost of processing the loan application.
It can vary but typically ranges from $0 to $600.
Establishment fee:
This is a fee charged by the lender to cover the cost of setting up the loan, such as underwriting, preparing loan documents and processing the loan application.
It can vary but typically ranges from $200 to $1000.
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Valuation fee:
This is a fee charged by the lender to cover the cost of an independent property valuation, which is required to determine the value of the property being used as collateral for the loan.
It can vary but typically ranges from $200 to $500
Credit report fee:
This is a fee charged by the lender to cover the cost of obtaining a credit report on the borrower.
It can vary but typically ranges from $20 to $50.
Title search and title insurance fee:
This is a fee charged by the lender to cover the cost of searching public records to ensure that the property being used as collateral for the loan is free and clear of any liens or other encumbrances.
It can vary but typically ranges from $100 to $300.
Mortgage registration fee:
This is a fee charged by the lender to cover the cost of registering the mortgage with the relevant government body.
It can vary but typically ranges from $100 to $200.
It’s important to note that these costs are approximate, and may vary depending on the lender, the type of loan being applied for and the location of the property.
By understanding the costs of obtaining a loan in Australia, you can make an informed decision about which loan product is right for you and your financial situation.
Talk to a broker who can fully understand your needs and can help you minimise these costs and find the loan which is right for you!
