Fees and charges

Information on the costs associated with borrowing money

A loan application or establishment fee may apply. This is a one-off "administration" charge to set up the loan.
Stamp duty is payable on your loan.
The interest rate is a consideration.
It is important to remember that the longer it takes you to pay off the loan, the more interest you will pay to your lender. The interest rate may also rise during the term of your loan, which will increase your repayments to your lender. The rise in your repayments may affect your ability to keep making the payments and if so, you may lose your property as a result.
Consider taking out income protection insurance.

Unlike mortgage insurance, this is a policy that you can take out to help pay your mortgage if you are unable to work due to illness, retrenchment, or death.
Valuation fees may apply when buying an established property.

The lender will generally send a valuer to the place you intend to buy to ensure that the market price you've agreed to pay for the property is close to its value.

Although you pay the one-off valuation fee, you don't usually receive a copy of the report.
Mortgage insurance may apply when buying an established property.

The lender may require you to pay mortgage insurance, particularly if you are borrowing more than about 80 per cent of the value of the property or if you are buying property outside the metropolitan area.

Even though you pay for the mortgage insurance, it won't protect you if you cannot meet your repayments. (It only protects the lender when you cannot repay the loan).
Regular loan administration fees may apply.
Changing the features of your loan during its term (such as applying for a fixed interest rate) may also attract fees.

You should also ask about any fees or penalties that apply to:

paying out your loan early;
redrawing any extra payments you may have made towards the loan; and
negotiating another fixed term on your loan.