Buying a home is one of the most exciting things you can do, but it requires more than just the deposit you've been saving up for. There are fees associated with every home loan that you need to be aware of so that you can plan ahead and put extras aside to cover these expenses.
It is important to obtain the latest list of fees from your Lender as the charges can vary between Lenders. In this article we list the high level summary of the main fees for Pepper Money home loan products.*
View the accessible text version of the infographic below or download the PDF version.
Fees paid upfront (on or before settlement date)
- Establishment Fee: required as part of the application process on all new loans, including refinancing existing Pepper Money loans. The establishment fee includes a valuation.
- Valuation Fee: if a valuation is ordered by Pepper Money it's included as part of the establishment fee.
- Title Protection Fee: a one-off, non-refundable payment similar to title protection insurance as it protects the lender against loss caused by legal matters relating to the title of the property.
- Legal Fee: covers the cost of solicitors used in all legal matters for home loan contracts and settlement.
Fees paid upon settlement of your loan
- Monthly Administration Fee: a monthly fee for administering your loan and is payable in arrears on the same day each month as the settlement date.
- Lender Protection Fee (LPF): a one-off, non refundable fee used to offset the risk associated with loans of a higher Loan to Value Ratio (LVR). A bit like LMI it protects lenders against the unfortunate event of a defaulted loan.
- Mortgage Risk Fee (MRF): similar to LPF, it protects Pepper Money against the unfortunate event of a defaulted loan. There is a slight difference in the way the MRF fee structure is calculated.
- Discharge Administration Fee: a fee you pay when you discharge the loan agreement early.
* These fees and charges are correct as at 23 January 2018 and are subject to change at any time. Other fees and charges may apply depending on the applicant’s circumstances including loan purpose, loan features, loan defaults or arrears. To obtain a full list of all fees and charges and when these might apply, contact a Pepper Lending Specialist.
To find out which Pepper Money home loan product could work for you, or if you just have some questions you’d like answered around our fees and charges, speak to a Lending Specialist on 13 73 77. We have a variety of flexible home loan solutions whether you’re looking to refinance, buy your first home or add a new property to your portfolio.