06 Jul 2022

What is the annual facility fee for?

Annual Facility Fee

If you are entering the Australian housing market, there is some basic information you should know about the fees and extra charges associated with completing a contract and signing for a home loan. For example, not a lot of people know that you need to pay for an annual facility fee.

What exactly is an annual facility fee? This sneaky fee is easy to miss, but you feel it when the payment is due. It is not included in the overall mortgage and the payment is due at the time of the mortgage or home loan’s closing date. The exact percentage depends on the lending company as well as the cost of the home.

Mortgage House experts can assist you through your annual facility fee questions and any general home buyer concerns. There is a lot to know about home buying, which can be exhausting and frustrating. To make it easier, it is always best to speak with a lending officer. Exit fees are also important when closing on a home, not just an annual facility fee.

The fee does not go to the home seller though. Actually, it is received and primarily dealt with by the loan lender.

Annual Facility Fee Conclusion

Overall, Mortgage House lenders are experts in home loans and are happy to provide you with details about the process. The annual facility fee is an annual fee that is a small percentage, usually 0.05%, of the total value of a home.

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