fees and charges

[Nicole]

Hi

Could any wrappers out there please let me know what are the relevant fees and charges that get passed to the wrap purchaser?

eg: loan establishment fee, loan stamp duty, monthly loan service fee, the list goes on and on.
Also a late payment fee and how much is suitable and when does it come into effect?
When the purchaser refinances the fees associated with the closure of your loan?

What have other wrap lenders passed on to their purchasers?

Thanks Nicole

 

[michaelg]

Hi,

Some choose to bundle the cost of these fees into an application fee, or build it into the amount of deposit required.

Generally all fees are passed on;

The kind of costs incurred at each stage would be;

Establishment:
- legal fee
- legal disbursements
- loan application
- mortgage registration
- stamp duty
- building report
- pest report
- valuation
- phone/postage (materials and labour)

During:
- water rates
- council rates
- insurance
- land tax (though you should be able to apply for exemption)
- bank account fees

Ending:
- legal fee
- legal disbursement
- bank break fees
- mortgage deregistration
- outstanding fees

Just ensure your contracts indicate such costs, best thing to do is look at your own mortgage documents, they should include info on the types of fees you can incur, and your legal advisor will be able to tell you what fees will be incured at settlement of the contract.

Michael Gruber
www.loanalert.com.au