What Is An Ongoing Fee?
A mortgage does incur an ongoing fee in the form of administrative costs. Compared to the total cost of home loans in interest rate charges, the administrative fees remain far smaller. Nonetheless, they increase the total amount that a homeowner pays to purchase their home.
Examples of ongoing fees include posting fees, offset fees, and annual fees. Variable-rate mortgages offer a host of beneficial features such as redraw facility, additional repayments without penalties, and connecting an offset account. Non-bank lenders like Mortgage House emphasise using technology to make the lending process across the board more efficient. Even though our loan specialists employ proprietary tools to evaluate all applications, humans still participate in the lending and mortgage maintenance process. Therefore, ongoing fees cover those administrative costs.
In many cases, the savings reaped from connecting an offset account to a variable-rate mortgage covers the fees incurred and more. Therefore, the homeowner still comes out on top.
Mortgage House does offer a no-fee home loan. Our loan specialists can discuss its details with those interested. In addition, our loan specialists discuss the details of all fees a mortgage carries. Plus, homeowners can find a breakdown of their home loans in their welcome packet.
We offer additional tools too such as our Mortgage House mortgage repayment calculator.
Ongoing Fee for Mortgages Conclusion
Some home loan features will incur an ongoing fee. When a homebuyer receives their mortgage offer, they will find a breakdown of the home loan and its fees. For more information, speak with our Mortgage House loan specialists.