Deferred establishment fees

Hi there,

What's a typical deferred establishment fee as a % of the initial loan?

eg. 0.5%...0.8%?


Its very hard to state a "typical" deferred establishment fee as they range all over the place and differ bank to bank and product to product & ofcoarse depend on the length you have held the loan.

The more mainstream lenders the DEF is a flat fee, usually between $700 & $1400.

A few lenders have a DEF of 1-2 months interest, others are between 0.5% - 2%.

There's no 'typical' DEF. If you want to know what it is, it's easily found in the first few pages of your loan offer document.
Usually but not always, the fish and chip lenders with "Low rate, no fees" have a weighty % based def.

Its an Interesting terninology.

If you go to one of the banks, on average they will try it on with say a 600 app fee. if you then leave in a year, they will on avrage charge you a DEF of say 1000, so 1600.

take a typical 500 k loan, take it to a lender with a 1 % def in the first year, all of a sudden the cost of making that loan has jumped from 1600 to 5000, PLUS whatever fees they charge on the way in.