11 Jul 2022

Who can charge a facility fee?

PEXA Fees for Services

Charging a facility fee is not the role or the job of all financial parties. For example, the borrower cannot collect a facility fee. Instead, the party that charges a facility fee is the facility itself or the bank that works with the facility to create and hold the credit. Usually, a facility fee is a bank fee to the borrower from the lender or bank.

Usually, you will need to pay this fee to keep the line of credit open. Without the payment, you could increase late fees and extra charges. The annual facility fee charge is a small percentage of the entire loan or borrowed amount on the line of credit. 

This fee acts as a security for one of the parties that want to ensure they have the money and that the borrower will repay the entire amount. Mortgage House offers many types of loans and lines of credit that are useful for all borrowers. They are unique solutions to problems. When looking at fees it can be overwhelming. Our mortgage house experts, though, can break down the fees with ease while also providing answers to all questions.

Facility Fee Charges Conclusion

Overall, the only two parties that can charge a borrower an annual facility fee are the bank or the company that is associated with the facility. This fee is not a lot and is charged directly to the borrower’s account or line of credit. The charge is scheduled for the anniversary of the line of credit.

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