Are Application Fees Normal?
If you are considering applying for a specific loan product with your chosen mortgage lender, you may want to learn more about the various fees and expenses associated with the loan application process, such as if application fees are normal.
Yes, loan application fees are completely normal. In Australia, all lending establishments charge fees, although the fees being charged may vary from lender to lender. Home loan providers charge their borrowers fees to recover administrative cost required to establish a new application for a home loan.
As we mentioned previously, there are various fees involved with the loan application and approval process that are charged by mortgage lenders, including the following:
- Settlement fees
- Lender legal costs inclusive of title & government search fees
- Valuation fees
Potential borrowers who are concerned with the various fees and expenses involved with the mortgage application process can apply for a no-fee home loan or inquire with their home loan provider about rolling the application fees and expenses into their upcoming mortgage repayment schedules. A no-fee home loan is a type of home loan agreement where the one-time and ongoing fees have been waived.
Can The Mortgage Application Fee Be Waived?
Yes, it is possible if you embrace the following:
- Shop around for the best fees: Compare fees from different lenders to see who is offering the lower fees.
- Have a good credit score: A good credit score can help you qualify for lower fees.
- Provide a large deposit and/or equity: A larger deposit can lower the amount you need to borrow, which can lead to lower fees.
- Negotiate with the lender: Don’t be afraid to ask the lender if they can offer you a lower or better fees.
- Provide evidence of your income and assets: Lenders will be more willing to offer lower fees to borrowers who can prove they have a stable income and assets.
- Use a mortgage broker: A mortgage broker can help you find the best loan for your needs and negotiate the best rate with the lender.
Mortgage application fees have the potential of being waived if the applicant qualifies, however, this varies depending on the situation.