Keep Room In Your Budget For Home Loan Fees
When you’re planning for a mortgage it can be easy to only focus on the biggest expense - the value of the property.
This makes sense - home loans and deposit calculations will be largely determined by the house price - but when preparing your finances it is just as important to be aware of the additional fees which come with home borrowing.
When you apply for a loan product, you will have to pay a home loan application fee, which covers administration costs.
Lenders may also require a market valuation of the property - sometimes this is included in the loan application fee, though not always.
If the amount you borrow is more than 80 per cent of the value of the property, you will usually need to get lenders mortgage insurance, which protects the lender from losses in the event that you default on your loan.
You should also check to see if you will need to pay monthly administrative charges once your loan has been approved - these will add to your repayments.
These fees and others will vary from lender to lender - a mortgage broker can tell you which ones will apply to you and help you budget for them.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.