26 Jan 2023

Is an Application Fee a Finance Charge?

Loan Application Fee

When applying for a home loan, there are a number of fees and expenses that come with the process, such as loan application fees. It’s important to understand that these fees are not considered a finance charge by definition. However, borrowers do have the option to roll the application fees into their mortgage. Typically, mortgage lenders will charge a flat fee range of $600.00 to $995.00 as an application fee, which must be paid upfront unless the borrower can roll the fees into their mortgage.

As we mentioned previously, there are various fees involved with the mortgage application and approval process that you may be required to pay, including the following:

  • Settlement fees
  • Lender legal costs inclusive of title search & government fees
  • Cost of valuation

If you are concerned with the variety of fees or expenses involved with the home loan application process, it is recommended to apply for a no-fee home loan or inquire with your provider about rolling the application fees and expenses into your future mortgage repayments. A no-fee home loan is a type of home loan agreement allowing the one-time and ongoing fees to be waived. NB: A low interest rate home loan has the potential of saving thousands of dollars over the life of your home loan.


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