How to minimise your mortgage fees

By Marie Mortimer | 23 Mar 2022

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Many people underestimate the cost of buying a home - lender and government fees can easily add 6-8% on to the cost of the property.

The best way to eliminate most of these costs is to be aware of the types of loan fees lenders charge and shop around for a loan that has as few of these as possible. It’s not possible to avoid loan fees completely, but you can definitely minimise them.

Application fee

Also called establishment fees, this is a fee that covers the cost of the documentation of the new mortgage. It can also be referred to as a start-up or set up fee. Application fees are a one-off fee that can be hefty - usually between $150-$700 depending on the lender and the loan amount. Application fees are the most commonly waived fee and are usually non-refundable.

Not all lenders charge application fees. At we don’t charge an application fee on any of our investment home loans.

Extra repayment fees

While most mortgages these days allow borrowers to make extra repayments, some lenders charge a fee for those who do so. This generally applies to fixed rate loans and some variable rate products. If you’re in a position where you can make additional repayments on your investment loan, it’s important to ask the lender about extra repayment fees before applying for the loan. At we allow borrowers to make extra repayments into their investment loan without being charged any extra fees for doing so.

Redraw fees

Redraw facilities are a widely used loan feature that allows you to access additional repayments paid into your loan. Some lenders may charge a fee for simply activating this facility before you’ve even accessed the redraw facility, while other lenders may limit the number of free redraws you can make. Once you’ve reached this quota, you may be charged a fee - typically between $10 and $50 for each extra redraw.

If you know that a redraw facility is a loan feature you will want to use, make sure you ask the lender if there are any fees that come with using a redraw facility. At our Smart Investor Loan and Smart Booster Investor Bundle both have free unlimited redraws, offering you flexibility and the freedom to access your own savings.

Ongoing fees

You could also be subject to various ongoing fees, depending on your lender and product. These might include monthly service fees, annual fees, late payment fees, switching fees, portability fees, redraw fees and so on.

Some lenders might waive these fees as part of a promotion while others will charge you for interacting with your loan. Other lenders, like, don’t charge monthly or ongoing fees at all.

Find out more

Being an online lender, we have no physical branches so there are fewer overhead costs, meaning we can pass these savings directly on to you. But low fees aren’t the only thing we’ve got going for us. We also have competitive interest rates on our investment loan products and offer useful loan features like offset sub-accounts or redraw facilities.

If you’re ready to buy your next investment property, book a call with one of our lending specialists today and start your journey with us.


Marie Mortimer is Managing Director of, one of Australia's largest online lenders. Since Marie started the business more than 10 years ago, Marie has grown into a company with $6 billion worth of home and car loans. Marie is dedicated to improving financial literacy for all Australians and is passionate about the FinTech industry in Australia. When she isn't at work, she loves to spend time with her husband and two young children. is an online lender for home and car loans. For more than 10 years, Aussies have trusted the locally based team to support them with low home loan and car loan rates, approved quickly through the online app.

Top Suburbs : ferntree gully , sunshine , wentworthville , goulburn , canterbury


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