The interest rate is only part of the cost of a home loan. Fees can add thousands to your total borrowing cost — or cost you nothing, depending on which loan you choose and how you negotiate. Here is every fee you may encounter.
Application / establishment fee: Charged by the lender for processing and approving your loan. Ranges from $0 to $800. Many lenders waive this, particularly for package loans or when competing for your business. Always negotiate or ask for it to be waived.
Valuation fee: The lender commissions an independent valuation of the property you are buying. Typically $200–$600, sometimes waived by lenders. You often cannot use a valuation you commissioned yourself — it must be the lender's panel valuer.
Lenders Mortgage Insurance (LMI): Required when LVR exceeds 80%. Ranges from a few thousand to $25,000+ depending on LVR and loan size. See the LMI guide for full detail.
Rate lock fee: Locks your fixed interest rate between approval and settlement. Typically 0.10–0.25% of loan amount or a flat $500–$1,000.
Annual package fee: Many lenders bundle features (offset account, credit card, fee waivers) into an annual package for $350–$400/year. These packages can offer good value if you use all the features, but the fee adds to your total loan cost.
Monthly account-keeping fee: Some loans charge $8–$15/month. On a 30-year loan, $10/month is $3,600 total. Look for loans with no monthly fee, or ensure the offset account savings outweigh it.
Redraw fee: Increasingly rare, but some loans charge $20–$50 per redraw transaction. Check this if you plan to redraw regularly.
Mortgage registration fee: The state government charges a fee to register the lender's mortgage on the property title. Ranges from approximately $100–$200 depending on state.
Title transfer fee: Charged by the state government to transfer the title into your name. Usually $200–$400.
Stamp duty: The largest government cost — a state tax on the property purchase price. Use the Stamp Duty Calculator for your exact figure. First home buyers may qualify for exemptions or concessions.
You will need a conveyancer or solicitor to handle the legal transfer of property. Conveyancing costs typically range from $1,500 to $2,500 depending on complexity and state. This is separate from the lender's legal fees (which some lenders charge to borrowers for preparing loan documents — typically $200–$400).
Discharge fee: Charged when you pay out your mortgage (either from a sale or refinance). Typically $150–$400. Covers the lender's administrative cost of releasing the mortgage from the title.
Break costs on fixed loans: If you exit or refinance a fixed rate loan before the fixed term ends, you may face significant break costs. See the Early Repayment Penalties guide for how these are calculated.
Total upfront costs rule of thumb: Budget for 4–6% of the purchase price for total upfront costs including stamp duty, legal fees, and LMI (if applicable). On a $700,000 purchase, that is $28,000–$42,000 on top of your deposit.
How fees are incorporated into the comparison rate — and where it falls short.
Read guide →The costs of switching lenders and how to calculate break-even.
Read guide →