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House Loan Business Adventure

Mortgage Fees Exposed For Sydney Residence

Mortgage fees vary when comparing home loans between lenders…but I believe considering the ‘End Goal’ is more important!

And…if someone is going to compare lenders, then make sure they compare Apples with Apples…

By this I mean, make sure the products are comparable with regards to flexibility and features…not just comparing interest rates or if one has an upfront fee and the other doesn’t…

what is a comparison rate?

However, mortgage application fees are usually part and parcel of a Home Loan!

A fee shouldn’t be ‘make or break’ as it’s more ‘expected’ to pay it than to not…

It’s a little bit like flying from point A to point B and choosing which airline to fly based on ticket price!

Airline X may give you a discount upfront on your ticket and Airline Y does not. However along your journey you find that Airline X doesn’t feed you or have any personal entertainment unless you pay for it, where as Airline Y has included meals and entertainment in their ticket price. Both airlines will get you to your destination, but you may pay extra along the way using one over the other!

Was it worth that few hundred dollars saving upfront in the long-run?

                               

Sometimes yes and sometimes no…

The point being…A decision to choose one lender over the other doesn’t need to be based SOLELY on not paying an ‘application fee’ or the waiving of a ‘valuation fee’…

People may save money upfront and get an amazing product also…or they may save money upfront and pay extra in fees along the way…

Look at it this way…the goal is to get finance, with a product that suits the needs with an end goal of paying this off as soon as possible. A fee is ‘expected’ and I am satisfied to pay it if I can get a suitable product that does me well over my loan term…which should include a good interest rate and flexibility to make additional repayments…

If I can get the ‘suitable product’ and not pay an application fee then fantastic…it’s a bonus!

However, if I can get that product which suits my needs then an application fee is expected and so be it…

If people do choose the correct product then the savings they will save over the term of the loan will be in the thousands, by far off-setting any application fee in the beginning

And if they are going to compare lenders then compare the products and the product features… not just the application fees.