Mortgage fees in Australia: what to budget for beyond the deposit

Your deposit isn't the full cost of getting a home loan. Lender charges, government fees, conveyancing, inspections and settlement adjustments can all affect the cash you need. Some can be included in the loan; others need to be paid before settlement.

I'd compare the interest and fees together, then check what needs paying before settlement. A lower rate can still win after an annual fee, but a small saving can disappear once you add setup or switching costs.

Compare a $500k loan over 30 years at 6% with a $395 annual fee against the same loan at 6.10% with no annual fee. Assume monthly principal and interest payments, unchanged rates and no other cost differences for the first 5 years.

The lower rate costs about $530 less in interest and annual fees over those 5 years. The repayments plus fees are very similar, but the lower-rate loan also leaves a smaller balance. That is a modest advantage which an extra setup or exit charge could change.

Compare the period you expect to keep the loan and include the balance still owing. A repayment figure on its own doesn't show the full difference.

Even with a $0 application fee or an LMI waiver, you still need to budget for the other buying costs. Get the complete quote before deciding how much cash to keep for settlement.

Application or establishment fees cover setting up the loan. Some products waive them, while others charge a fixed amount or a product-specific fee. Confirm whether a quoted waiver has conditions or an expiry date.

A valuation fee may apply, particularly for unusual properties, additional valuations or specialist products. Ask whether the first valuation is included and whether you could be charged if the loan doesn't proceed.

Settlement and legal charges can sit separately from the application fee. Construction loans may also have progress inspection or drawdown fees. Compare the actual product schedule rather than relying on an average for “the banks”.

Macquarie's home loan comparison, checked on 11 September 2026, shows a $0 application fee but a $350 documentation fee for both its Basic and Offset loans. Its Offset loan also has a $248 annual fee. That’s why we add up the actual charges instead of stopping at the fee advertised as zero.

Construction loans can charge each time money is released or a progress inspection is needed. Others bundle those services into one fee. Macquarie's product guide lists a $1,500 construction administration fee at settlement covering valuations and progress payments during construction. An annual offset package fee still applies if you choose that package.

Ask how many progress payments your building contract needs, which inspections are included and what could trigger an extra charge. Add up the charges across the whole build before comparing loans.

Ask for an itemised fee schedule for the actual product. For a standard home loan, also ask about its Key Facts Sheet, then check any costs that depend on your property or arrangement. A fee that won't apply to your purchase shouldn't be included as though it is unavoidable.

A rate lock secures a fixed rate before settlement for a set period. The fee can be a percentage of the loan, a flat amount or a charge per loan account. Splitting your fixed lending across accounts can change the total. These published examples were checked on 11 September 2026.

See the current details from Westpac, ANZ and CommBank. Our Westpac review and ANZ review explain how the wider loan features compare.

Before paying, ask when the lock starts, when it expires, whether the fee is refundable and what happens if settlement is delayed. Also ask whether you receive a lower rate if fixed rates fall. Those conditions matter as much as the fee: paying to secure a rate doesn’t mean every lender handles a falling rate or a delayed settlement the same way.

An annual package fee may cover features such as an offset or discounts on other products. A basic loan may have fewer features and lower fees, but not always the lowest total cost for your needs.

At an assumed 6% rate, keeping an average $10k in a 100% offset saves about $600 in interest over a year. Here's what remains after the fees, assuming the loan rate is otherwise the same.

If you’re fixing your rate, check which loan balance can be offset and whether the offset is full or partial. Some fixed loans have no offset. ANZ, for example, offers its ANZ One offset on a 1 year fixed loan and lists a $10 monthly offset-account fee. Don’t assume a feature available on one fixed term also applies to a longer term.

Moneysmart's offset guide explains the comparison. Our repayment guide shows how offset and extra repayments differ.

A discharge fee can apply when the lender releases its mortgage. Government discharge and new mortgage registration charges may also apply when you refinance.

For example, Macquarie's product guide lists a $400 fee for a full mortgage discharge, plus any third-party charges. That is separate from a fixed rate break cost. Ask your existing lender for an itemised payout quote so the refinance comparison includes both where they apply.

A fixed rate break cost is different. It depends on the contract, remaining fixed period, amount repaid and the lender's calculation at the time. Ask for an up-to-date quote before committing to a refinance or a large extra repayment.

Check the extra repayment allowance before putting a bonus, inheritance or sale proceeds into a fixed loan. The limit may reset each fixed-term year rather than on 1 January, and unused allowances may not carry forward. If you expect to pay extra, include that flexibility when comparing fees and rates.

Early termination fees were banned on new home loans from 1 July 2011. A fee for releasing the mortgage and a fixed rate break cost can still apply. Ask for an itemised payout so you know what each charge covers. Our refinancing guide shows how to compare staying with switching over the years left on your loan.

If switching costs $2k and saves $100 a month after ongoing fee differences, the simple break-even period is 20 months. That calculation assumes the saving stays the same and doesn't include changes in the balance or rate.

If you expect to sell in 12 months, that switch may not recover its cost. A cashback also needs to be compared with the full rate, fees and eligibility conditions rather than treated as pure savings.

For any cashback or fee rebate, check the minimum loan, loan to value ratio, application and settlement deadlines, and when the money is paid. Also check whether a government guarantee or professional LMI waiver affects eligibility. A rebate paid after settlement won’t cover a bill that needs paying beforehand.

Transfer duty depends on the state, property value, buyer and any concession. It isn't charged by the bank, and a lender's fee waiver doesn't remove it.

For a Queensland purchase, use QRO's transfer duty information and have your solicitor confirm eligibility for any concession. Registration fees are a separate cost; Titles Queensland publishes the current schedule.

If you're a first home buyer, check grants and duty concessions independently. Qualifying for one doesn't automatically qualify you for another, and contract dates can matter.

Lenders mortgage insurance protects the lender if it suffers a loss on your loan. It doesn't protect your repayments or remove your obligation to repay a shortfall.

LMI commonly applies when borrowing more than 80% of the lender's accepted value, unless a waiver or other arrangement applies. The premium depends on the lender, loan size, deposit and application; a flat percentage estimate can be misleading.

Compare an eligible LMI waiver or government guarantee with the overall loan cost. If the premium is added to the loan, allow for the larger balance and interest as well as the lender's maximum percentage of the property value.

Ask this before relying on a small deposit loan to cover your costs. Some limits include the LMI premium; others allow it to be added above a base loan limit. The rules can also differ between buying and refinancing.

For example, on an $800k property, a 95% limit is $760k. If that limit includes an assumed $15k LMI premium, only $745k of the loan remains for the purchase. You would need $55k towards the price, plus other purchase costs. We’ve assumed $15k for this example. We’ll get your actual premium and confirm how it fits within the lender’s limit before you set your deposit budget.

Get written conveyancing and inspection quotes, including what is excluded. Searches, complex contract work, strata reports or an extra inspection may cost more than a basic advertised package.

You may pay these costs before knowing whether the purchase will proceed. Budget for insurance, moving and immediate repairs too. The settlement guide explains how rates and other adjustments affect the final amount due.

Financing eligible costs can preserve cash, but increases the balance on which interest is charged. You also need room under both the property limit and the amount your income can support.

For example, adding $5k to a loan at an assumed 6% over 30 years adds about $30 to the monthly repayment and about $5,792 in interest if repaid over the full term. That assumes monthly payments, an unchanged rate and no other fees.

Compare the long-term cost with keeping an emergency reserve. There isn't one answer for every borrower, especially if paying cash would leave you short at settlement.

A comparison rate combines the interest rate with certain fees using standard assumptions. It can help identify a product whose low headline rate comes with extra costs, but it won't include every expense or mirror your loan amount and term.

Moneysmart's home loan comparison guidance explains what to compare. Ask us for the dollar costs based on your planned loan, rather than choosing from the comparison rate alone.

Yes. If a broker charges you directly, that is separate from the lender's application or package fee. Have the amount and when it becomes payable explained in a written quote before proceeding. Our mortgage broker fees guide explains the distinction and the questions to ask.