Mortgage costs and fees

How much should you expect to pay in fees when getting a mortgage? We analysed the fees on mortgages from across the market to give you a clear idea of your costs.

Mortgage fees can really add to your upfront home loan expenses. So what's the average cost of mortgage fees in Australia?

  • $686

The average total upfront cost of mortgage fees in Australia, on average, is $686.

We arrived at this figure by looking at all the major upfront fees on all the current home loan offers in our database to find market average.
A woman with $100 notes. Image: Getty Images

Average mortgage fee calculation

We arrived at this number by looking at the average cost of the following common fees:

  • Application fee. Often the largest mortgage fee, application fees can reach as high as $600, while some lenders waive them completely.
  • Legal fee. This fee covers your lender's legal costs. It doesn't cover your own conveyancing fees.
  • Valuation fee. Lenders may charge this to have your property professionally valued to ascertain that the amount you're borrowing isn't too high.
  • Service fee. An ongoing fee charged monthly or yearly by some lenders. We've averaged out the first year's worth of costs for this figure, but you'll actually be charged every year for the life of the loan.
  • Settlement fee. A fee charged to cover the costs of your property settlement.

Note that some lenders will charge some but not all of these fees. Others may charge extra fees in certain cases.

You can get a home loan with almost $0 upfront fees

The mortgage market is very competitive. Many lenders offer competitive rates with no application or service fees and keep other fees to a minimum.

Here are a few super low-fee mortgages on the market right now:

Mortgage Fee details
HSBC Home Value Loan This product has a $150 legal fee and a $150 settlement fee for a total upfront fee cost of $300.
ME Bank Basic Home Loan This mortgages comes with just a $200 valuation fee.
UBank UHome Loan Variable This loan has no major fees at all.
Tic:Toc Live-in Variable Home Loan This loan also has no major upfront fees, although there is a $325 discharge fee at the end of the loan.

Disclaimer: these loans are available through Finder and are correct at the time of publication. Lenders change fee structures all the time. You may find other low-fee offers on the market elsewhere.

Other upfront costs to watch out for

The fees on this page are not the only costs associated with getting a mortgage. You should also keep in mind costs like:

  • Stamp duty. The cost of stamp duty depends on your state, property value and whether you're eligible for a first home buyer concession.
  • Lenders mortgage insurance. If your deposit is smaller than 20% you may need to pay thousands in lenders mortgage insurance.
  • Conveyancing fees. Your conveyancer may charge between $500 and $2,000.
  • Mortgage registration fees. A state government charge that costs between $145 and $187.

Check out our detailed costs guide for a full breakdown of all upfront property costs.

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Related Posts

Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

Athena Variable Home Loan - Refinance (Owner Occupier, P&I)

Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

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