Home loan fees explained
4 min read · reviewed 2 Nov 2026 · live figures as at 2 Nov 2026
A low rate can come with fees that cost you more than the rate saves. This guide lists the fees Moneysmart names, what the comparison rate covers, and what to ask so you see the full cost.
The fees Moneysmart names
| Fee | What it is, in Moneysmart's words or close to them | Where to read more |
|---|---|---|
| Upfront (establishment) fees | Fees charged when you take out the loan, listed on the Key Fact Sheet | Moneysmart, Choosing a home loan |
| Application fee | An upfront fee when you apply for a new loan | Moneysmart, Switching home loans |
| Ongoing fees | Fees charged every month or year for administering a loan, also called service or administration fees | Moneysmart, Choosing a home loan |
| Discharge (termination) fee | A fee when you close your current loan | Discharge fees |
| Break fee or break costs | Can apply if you are on a fixed rate loan and leave before the fixed period ends, or repay early | What happens when your fixed rate expires |
| Switching fee | A fee when you refinance within the same lender | Real cost of switching |
| Stamp duty | A state or territory tax that may apply, including when you refinance | Stamp duty by state |
| Lenders mortgage insurance | May apply with less than 20% equity | LMI |
Fees Moneysmart does not itemise
Some fees are not defined on the pages we read, so ask the lender about each and read the contract and Key Fact Sheet:
- Valuation and settlement fees. Ask whether they are charged, who does the valuation and whether they appear on the Key Fact Sheet.
- Redraw and loan feature fees. Moneysmart suggests asking whether the loan has an offset account or redraw facility and whether there are "fees for using loan features."
- Extra repayment fees. Moneysmart suggests asking whether you can make extra repayments without paying a fee.
- Late payment fees. Ask what the lender charges and what it does if you fall behind. If you are struggling, see mortgage hardship.
- Annual package fees. See package home loans and annual fees.
- Government fees and charges. Stamp duty is the one Moneysmart names. Ask your conveyancer or solicitor which other government charges apply to your purchase.
The comparison rate
Moneysmart's glossary (updated 24 August 2019) says the comparison rate helps you work out the true cost of a loan and includes the interest rate and most fees and charges relating to a loan, reduced to a single percentage figure. Its Choosing a home loan page (updated 16 September 2026) says it combines the interest rate and most fees, and does not include every feature or condition. So a lower comparison rate does not tell you the loan is right for you. See the comparison rate explained.
RateSonar shows the lowest advertised standard owner-occupier variable rate as 5.69% (Aaa Financial Corporation Portfolio Loan, Aaa Financial Corporation), with a comparison rate of not published, as at 2 Nov 2026. These are advertised figures. The comparison rate rests on assumptions about the loan size and term, so your own cost will differ. Open the home loan rates board and compare rates to see rate and comparison rate side by side.
A worked example of why fees matter
RateSonar arithmetic, with the numbers shown. The median standard variable rate is 6.74%, and the lowest is 5.69%. On a $600,000 loan over 30 years, the monthly repayment difference between them is $409, or $4,908 a year. If a lender with the lower rate charges ongoing fees every year, subtract them from that yearly gap before you decide it is cheaper. This is the same sum to run with an upfront fee, spread across the years you expect to keep the loan.
A checklist to take to a lender
- Ask for the Key Fact Sheet for each loan you are considering, based on the amount you plan to borrow.
- What are the upfront fees, and are any waived?
- What are the ongoing fees, monthly or yearly, and do they change?
- Is there an annual package fee, and what do I get for it?
- What happens to fees if I make extra repayments, use redraw, or use an offset?
- What are the break costs if I repay the loan early or refinance?
- What is the discharge fee when I close the loan?
- What does the lender charge for late payments?
- Will lenders mortgage insurance apply, and can I add it to the loan?
- What is the comparison rate, and which fees does it include?
- Please send the answers in writing.
Check it on RateSonar
Common questions
What fees do I pay when I take out a home loan?
Moneysmart refers to upfront (establishment) fees, such as an application fee, and ongoing fees. The Key Fact Sheet lists the fees for each loan.
Is the comparison rate the full cost of a loan?
No. Moneysmart says it combines the interest rate and most fees, and does not include every feature or condition.
Can I get fees waived?
Lenders set their own policies. The sensible course is to ask, especially when negotiating. See negotiating a new home loan.
What fees apply when I switch lenders?
Moneysmart lists break fees on fixed rate loans, discharge fees, application fees, internal switching fees, stamp duty and LMI. See the refinancing checklist.
Where do I find a loan's fees in writing?
The Key Fact Sheet is compulsory and has the same layout for every home loan. Get it from your broker, the lender or the lender's website.
Sources
- Moneysmart: Choosing a home loan · page updated 16 September 2026, checked 2 November 2026
- Moneysmart: Switching home loans · page updated 29 October 2026, checked 2 November 2026
- Moneysmart: Comparison rate glossary · page updated 24 August 2019, checked 2 November 2026
- Moneysmart: Buying a house · page updated 14 October 2026, checked 2 November 2026