Property Purchase Loans
What Fees Apply To Property Loans?
5 min read- Finance Guide
- Updated 2026
Quick answer
Property loan fees can range from
0 to $600+
depending on lender, structure and transaction
- Application fee $0 to $600+
- Annual package fee $0 to $400+
- Discharge fee $150 to $500+
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1300 421 044
Detailed explained
Fees on property loans vary by lender, product type and feature set. Some loans promote low rates but charge annual package fees or feature fees. Others waive upfront charges but may have fewer inclusions. A proper comparison should look at establishment costs, ongoing costs, transactional costs and exit costs together.
Common fee types and where they appear
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Application or establishment fees may apply when the loan is set up, although some lenders waive them or include them in a package
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Valuation fees can apply when the lender needs an independent assessment of the property security
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Ongoing costs may include annual package fees, offset account fees or feature fees depending on the product
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End of loan costs may include discharge fees, settlement administration fees and break costs on fixed loans where relevant
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FEE SNAPSHOT
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Upfront fees
often $0 to $600+
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Ongoing package fees
often $0 to $400+
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-
Important
The cheapest advertised rate is not always the lowest total cost once fees are added
How fee assessment usually works
Compare
01
Start with the interest rate, then check the key fact sheet, comparison rate and fee schedule
Review features
02
Review which features you actually need, such as offset, redraw, package discounts or fixed rate certainty
Confirm costs
03
Check whether valuation, legal, settlement or government related costs will apply for your transaction
Complete
04
Confirm the full cost across the first year and over the likely life of the loan before committing
What lenders look at
Loan type and pricing
Some fee structures depend on whether the loan is basic, packaged, fixed, variable or split
Property and valuation complexity
Certain property types or complex securities can lead to extra valuation or assessment costs
Required features
Offset accounts, multiple splits and package benefits can affect both price and fees
Settlement pathway
Refinances, purchases and equity releases can each involve different administration or discharge charges
Lender policy
Some lenders waive fees to win business, while others rely on annual package pricing
Exit flexibility
Fixed loans and short term refinancing can create break costs or discharge fees later
Comparison rate matters
Comparison rates can help show the cost of interest plus many standard fees, but they still may not capture every feature fee or event based charge
Need Help with your Project?
When fees usually appear
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01. Before approval you may see application, assessment or valuation costs depending on lender policy
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02. After approval an annual package fee or feature fee may begin if the chosen product includes it
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03. During the life of the loan, redraw, offset, late payment or transaction related fees may apply in some products
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03. When the loan ends, discharge costs and fixed rate break costs can become relevant if you refinance, sell or repay early
Common problems
Loan fees are often overlooked because borrowers focus on rate alone. Problems usually arise when a loan looks cheap upfront but carries package costs, feature charges or exit fees that were not properly compared.
Hidden ongoing costs
A loan with a low rate can still be expensive if it has an annual package fee, multiple account charges or paid extras you do not need.
Possible solutions include:
Compare first year cost, not just rate- Check whether the package fee is offset by the discount
- Remove paid features you will not use
- Ask for the full fee schedule in writing
Feature mismatch
Some borrowers pay for features such as offset or split facilities without using them enough to justify the extra cost.
Possible solutions include:
- Work out whether an offset account will genuinely save more than it costs
- Compare basic loans against packaged loans
- Review redraw rules and any transaction limits
- Focus on total value, not marketing labels
Exit and refinance costs
Refinancing or ending a loan can create discharge fees, fresh valuation costs and fixed rate break costs that change the maths.
Possible solutions include:
- Check discharge fees before refinancing
- Allow for fresh valuation and settlement costs
- Understand fixed rate break cost risk before locking in
- Model the cost of selling or refinancing later
Steps to compare property loan fees
Step
01
List the fees that matter most, including upfront, ongoing and exit costs.
Step
02
Compare the comparison rate, not just the advertised rate.
Step
03
Review which features you actually need before paying for them.
Step
04
Ask for the lender fee schedule and key fact information.
Step
05
Check package value against likely annual savings.
Step
06
Confirm the total cost over the period you expect to keep the loan.
Speak with a Property Finance Specialist
Property loan costs can vary significantly depending on the lender, the chosen product, the feature set and whether the loan is for a purchase, refinance or equity release.
A specialist can help compare fee structures, explain hidden costs and identify products that may offer better overall value.
Speak with a finance specialist about property loan costs
Submit the short form below and a property finance specialist can review the likely lender fees, feature costs and overall structure that may suit your purchase.
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