Do I Get a Refund of Application Fees if the Valuation Result was Below Expectations?
There are several moving parts during the home loan application process. From property valuations to settlement to assessing your application, a lot of people need to get paid. Therefore, when you apply for a loan, you will incur several fees to help offset the costs of some of this process.
Some of these fees are the application fee, settlement fee, title insurance, lenders mortgage insurance, and a valuation fee.
The most stressful part of the application process for borrowers is the valuation process. Your property valuation is a significant factor in determining whether your loan is approved or rejected. If your valuation isn’t favourable and your loan is denied as a result, your valuation fee is not refundable. This fee is not refundable because the bank still needs to be the valuator, regardless of the status of your application.
However, just because the valuation fee isn’t refundable, it doesn’t mean your application fee is too.
At Mortgage House, we are committed to putting our customers first. We understand how frustrating a poor valuation can be and that you may request a refund on your application fee. We may refund you part of the money, meaning we subtract the hard costs of labor, administrative work, valuation, etc., and a one-time $100 processing fee from your application fee and refund you the rest.
When you apply for a home loan with one of our specialists, we are upfront about any fees you may incur. We also inform you from the beginning which of these fees may be refundable and which ones are not so that you can have peace of mind throughout the entire process.