Aussies are paying less in home loan fees, says RBA
![](http://cdn.mozo.com.au/redactor/pictures/8397/iStock-951092116_original.jpg)
The annual Reserve Bank bank fee survey revealed that banks’ income from home loan fees has decreased by 7%, despite an incline over previous years.
In 2018, household fees, which include credit cards (41%), home loans (28%) and deposits (22%), made up around one third of the overall fees income of banks across the country.
According to the RBA, the drop in income made from home loan fees was largely a result of fewer new and refinance loans being taken out over the course of the year.
They also stated that the decline is, in part, due to banks and lenders waiving ongoing service and annual fees across a number of products for their customers.
How to reduce fees on your home loan
While there was a decline in the income that banks made on home loan fees, there are plenty of fees and charges that could trap you and potentially cost a lot over the life of your mortgage.
So, here are some useful tips to help you save on both upfront charges and ongoing fees on your home loan.
Upfront charges
- Opt for a low or no application fee: This is generally the first fee you’ll face when taking out a home loan. While there are loans that don’t charge an application fee, some lenders will charge you, so choose wisely because if you avoid paying a lot in fees early on it could really help your overall savings down the track.
- Check for valuation, legal and other one-off charges: This can be a little bit of a juggling act, but sit down, read the fine print and crunch some numbers to make sure your not about to waste hundreds of dollars on multiple upfront fees when similar loans charge less.
- Be aware of whether you need Lenders Mortgage Insurance (LMI): If you’re loan to value ratio (LVR) is more than 80% of the property’s value, you are subject to being charged for LMI from your lender.
- Stay on top of government fees: These charges come directly from the Australian government, not from your lender, and cover stamp duty on your home loan. Keep in mind costs will depend on the cost of the property, what type of borrower you are (like a first home buyer) and what state you are in.
Ongoing fees
- Avoid monthly service and annual fees: There are home loans lenders that don’t charge ongoing fees, like Athena and UBank. Every dollar that remains in your pocket, and not in the hands of your lender, is crucial, so choosing a loan without a monthly or annual fee could save you hundreds (if not thousands) over its life.
- Make sure features don't come with fees: While home loan features like an offset account, extra repayment and a redraw facility are really useful, some lenders charge borrowers for using them. If you foresee yourself using one of these features, make sure that you go with a lender that offers them for free.
- Take steps to avoid extra costs if you can: To dodge charges like late payment fees, set up an automatic direct debit to stay on top of your repayment schedule and make sure you are making minimum payments on time.
RELATED ARTICLE: More lenders slash their fixed home loan rates following RBA cut
Ready to take out your first or next home loan? Jump over to our comparison table or read our in-depth home loan guides and tips.
Home loan comparisons on Mozo
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Unloan Variable
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- LVR <80%
- Interest rate
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5.99
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p.a.
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5.90
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$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
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5.99
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5.90
%
p.a.
- Upfront fees
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$0
- Ongoing fees
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$0.00
- Discharge fee
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$0.00
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
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6.14
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6.16
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$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
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6.14
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$350
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$0.00
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$400.00
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yes - free
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yes - free
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no
- Maximum loan to value ratio
- 60.00%
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- $150,000
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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6.09
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$250
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$0.00
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$300.00
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yes - free
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yes - free
- Offset account
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no
- Maximum loan to value ratio
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- $80,000
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6.09
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6.13
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$3,027
Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.
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6.09
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6.13
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$595
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$0.00
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$250.00
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yes - free
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yes - fees apply
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
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- Weekly, Fortnightly, Monthly
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Optimum Fixed Rate Home Loan
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5.69
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p.a.
Fixed 3 years
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6.34
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p.a.
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$2,899
Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.
- Interest rate
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5.69
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p.a.
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6.34
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p.a.
- Upfront fees
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$0
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$0.00
- Discharge fee
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yes - free up to $20,000 p.a. during fixed rate term
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- $2,500,000
- Type of mortgage
- Fixed
- Repayment types
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Read our Mozo Review to learn more about this South West Slopes Bank Optimum Fixed Rate Home Loan
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Mozo experts choice awards won:
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Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
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5.99
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p.a.
Variable
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5.90
%
p.a.
- Initial monthly repayment
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$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
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5.99
%
p.a.
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5.90
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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Read our Mozo Review to learn more about this Unloan Unloan Variable
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OMG Home Loan
- Owner Occupier
- Principal & Interest
- <60% LVR
- Interest rate
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5.99
%
p.a.
Variable
- Comparison rate
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6.02
%
p.a.
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$2,995
BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.
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5.99
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6.02
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p.a.
- Upfront fees
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$300
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$0.00
- Discharge fee
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$395.00
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- $1,500,000
- Type of mortgage
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Flex Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
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5.99
%
p.a.
Fixed 3 years
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6.34
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p.a.
- Initial monthly repayment
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$2,995
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
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5.99
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p.a.
Fixed 3 years
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6.34
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
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$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
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- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
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Mozo experts choice awards won:
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Express Home Loan
- Owner Occupier
- Principal & Interest
- LVR <90%
- Interest rate
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6.01
%
p.a.
Variable
- Comparison rate
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6.14
%
p.a.
- Initial monthly repayment
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$3,001
Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- Interest rate
-
6.01
%
p.a.
Variable
- Comparison rate
-
6.14
%
p.a.
- Upfront fees
-
$134
- Ongoing fees
-
$10.00 monthly
- Discharge fee
-
$350.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $5,000
- Maximum borrowing amount
- $3,000,000
- Type of mortgage
- Variable
- Repayment types
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Read our Mozo Review to learn more about this Bendigo Bank Express Home Loan
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Neat Home Loan
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
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6.09
%
p.a.
Variable
- Comparison rate
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6.11
%
p.a.
- Initial monthly repayment
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- Interest rate
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6.09
%
p.a.
Variable
- Comparison rate
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6.11
%
p.a.
- Upfront fees
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$250
- Ongoing fees
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$0.00
- Discharge fee
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$300.00
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
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Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
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6.09
%
p.a.
Variable
- Comparison rate
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6.13
%
p.a.
- Initial monthly repayment
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$3,027
Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.
- Interest rate
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6.09
%
p.a.
Variable
- Comparison rate
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6.13
%
p.a.
- Upfront fees
-
$595
- Ongoing fees
-
$0.00
- Discharge fee
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$250.00
- Extra repayments
-
yes - free
- Redraw facility
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yes - fees apply
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $2,000 online cashback when for refinance or purchase loans of $250,00 -$499,999.99, $3,000 for loan amounts of >$500,000.
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
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Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
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6.14
%
p.a.
Variable
- Comparison rate
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6.16
%
p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.16
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
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Flex Home Loan
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
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6.14
%
p.a.
Variable
- Comparison rate
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6.38
%
p.a.
- Initial monthly repayment
-
$3,043
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.38
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
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Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
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6.14
%
p.a.
Variable
- Comparison rate
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6.39
%
p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.39
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
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$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
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yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
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Read our Mozo Review to learn more about this Macquarie Offset Home Loan
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Basic Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR<70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,079
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
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Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Initial monthly repayment
-
$3,079
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
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Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Initial monthly repayment
-
$3,174
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about this ANZ Fixed Rate
Want to speak to someone about refinancing?
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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