Hidden Home Loan Fees: What to Watch For

When comparing loans, it’s easy to focus on the interest rate and overlook fees. Here are some common charges:

• Application fee:  An upfront fee to process your loan.

• Settlement fee:  Covers document preparation and settlement attendance.

• Annual or monthly service fee:  Charges for maintaining your loan account.

• Valuation fee:  The lender may charge to value the property.

• Break fee:  If you exit a fixed‑rate loan early.

• Redraw fee:  Some lenders charge for withdrawing funds via your redraw facility.

• Late payment fee:  If your repayment is not made by the due date.

  
  

A mortgage broker can provide a detailed comparison highlighting both rates and fees so you understand the true cost. Sometimes a loan with a slightly higher rate but lower fees may cost less overall.