19 Feb 2022

What Are Fees that Lenders Charge?

Fees that Lenders Charge

Homebuyers who finance their home purchase incur fees that lenders charge on top of the principal and interest rate costs. The good news is that it’s possible to waive and avoid paying several. First-time homebuyers have many resources available to them. The Australian government wants to convert renters into homeowners. Therefore, they issue grants to qualified applicants.

The grant for first-time homebuyers covers the upfront and closing costs that lenders charge in most cases. In addition, fees fall into three main categories, upfront, ongoing, and exit. Mortgage House outlines the most common lenders’ fees.

Application Fee. All lenders charge a fee to establish the application. It gets the ball rolling and shows that the applicant is a serious mortgage candidate.

Valuation Fee. Before a lender finalises their loan terms and offers to applicants, they have a professional evaluate the property’s current market value. Lenders use ratios such as loan to value. The ratio is a percentage. Thus, lenders require the most up-to-date property valuation.

Mortgage Registration Fee. Lenders take care of a lot of paperwork that goes to the various Australian housing agencies. While the homeowner pays off the mortgage, the lender appears on the title. Therefore, they register the home loan.

Government Taxes. When it comes to government taxes, you can’t get around them, even in the Australian housing market. However, it’s possible to defray them. The FHOG comes in handy for first-time homebuyers. For others, namely investors, obtain the services of a reputable tax accountant who will find the deductions that lower your tax liability.

Fees that Lenders Charge Conclusion

After exploring the fees that lenders charge, remember that it’s possible to waive or avoid several. Loan specialists at Mortgage House walk clients through their options. Contact our team to obtain more information.

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