11 Jul 2022

How do you negotiate facility fees?

Bank Valuation Fees and GST

A facility is a company or organisation that offers borrowers a line of credit that is revolving. With these types of credits, there are annual fees necessary to keep the facility open and running, even without a balance. For example, a facility fee is an annual, non-refundable fee usually equal to $395 for residential loans & 0.50% of the Credit Facility Amount for commercial loans in effect at that time. This same credit fee is charged on the same anniversary each year and does change. Lines of credits can expand, leading to an increase in how much a person is charged for facility fees.

Did you know you can negotiate facility fees? Technically, you can negotiate any kind of bank or loan fee. However, it is not common for lenders to agree to the changes. If you are willing to try, though, experts recommend speaking directly to the bank, lender, or company associated with the facility and your line of credit. Be honest about your intentions and your situation. If you are experiencing hardship, these companies often have resources and programs that can assist in paying the borrowed amount or loan.

Negotiating Facility Fees Conclusion

Negotiating facility fees do take time, and there is no guarantee that the company or your facility will agree. However, it is worth a shot! With the many fees that come with borrowing money, it can be overwhelming. Speaking to one of our Mortgage House lenders can speed the process up!

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