Upfront Home Loan Fees Fall

A NSW Government move to ban exit fees has lead to upfront loan fees falling, savings for consumers and a more competitive home loan market. According to RateCity, the cost of upfront fees (or loan establishment fees) has dropped from an average of $707 in early 2011 to around $673 in mid-2012. The majority of variable home loans -- around 72 per cent -- still come with upfront fees, but it’s important that consumers realise it is a cost that can be avoided.

A number of lenders have scrapped upfront fees altogether, and with such a wide variation in fees and flexibility, it’s worth shopping around. Don’t forget that others may compensate for low initial costs by charging higher rates. Getting a hold of your comparison rate will vary according to the size of the loan, so make sure you ask a lender for this before making a final decision.
Source: http://www.echonews.com.au/story/2012/07/16/shop-around-home-loans/

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