There’s no doubt that the biggest cost factor on your home loan is its interest rate. Even the difference between rates of 5.25% p.a. and 5.50% p.a. on a $600,000, 30-year loan could add up to close to $34,000 overall (with the latter rate resulting in more interest paid than your loan itself).
However, one expense that might be overlooked in the busy process of buying your home is the rates that you’ll be charged across your term. Lenders charge a range of fees from the outset of your loan right up until you make your final payment, so it’s important to be aware of what you’re paying at every stage of your repayment journey.
Mortgage fees for your circumstances
Buying a new home
Ongoing fees after buying your home
Refinancing your mortgage
Paying off your home loan
| Mortgage fee | Who charges it | What it’s for | How much it costs |
|---|---|---|---|
| Mortgage discharge fees | Lender | Covering the cost of discharging your mortgage, which may also include certain government fees | $250 to $500 |
Loan fee price ranges are estimates correct as of January 2026.
Are there any mortgage fees I can avoid?
Yes, there are several of the above mortgage fees that can be avoided in certain circumstances. These include:
- Stamp duty: stamp duty exemptions and reductions apply in most parts of Australia to first-time buyers. If you meet your state or territory government’s requirements in terms of the house you’re buying, how much you’re spending and more, you could pay as little as $0 on your first home.
- LMI: LMI is only payable if you’re buying a home with a deposit worth less than 20% of your property purchase price. However, if you’re utilising a government program like the 5% Deposit Scheme or applying with a guarantor, you’ll likely avoid having to pay it.
- Conveyancer/legal fees: using a solicitor or conveyancer isn’t mandatory but is strongly recommended when you buy your home. They can provide advice, review complex sale contracts, oversee the purchase process, liaise with your lender and more. Using a solicitor is usually more expensive than a specialist conveyancer but may bring you greater peace of mind.
- Establishment/monthly fees: many lenders avoid charging fees for monthly administrative costs, while others may be willing to waive the one-off establishment fee. Finding out whether your lender is one of them comes down to comparing your options or speaking with your mortgage broker.
- Rate lock fee: though many lenders charge them, locking your rate isn’t usually necessary in situations where the RBA isn’t set to increase the national cash rate. There may be cases where lenders increase their rates independent of the RBA, but rate locks still may not be required. Speak to your broker or lending representative if you’re unsure whether you’ll need to pay a rate lock fee.
Trying to beat the fees
"Unfortunately, most home loan fees are unavoidable. What is avoidable is overpaying on home loan fees and interest. By taking the time to compare your options and carefully checking lender charges, you can sidestep potentially steep mortgage fees on your loan. A mortgage broker can also negotiate fees on your behalf with your lender, which you might not be in a position to do otherwise."
The difference between minimum and maximum home loan fees
How do I compare home loan fees?
Although looking at fee schedules for each lender isn’t the most challenging way to compare home loan charges, there’s a much simpler way. Every home loan will be advertised with a comparison rate, which includes both the interest and the non-conditional fees charged on your loan (such as establishment and ongoing charges). You can see this on Commonwealth Bank’s website (taken 28 January 2026):
Comparison rates allow you to compare apples with apples when it comes to your home loan. Rather than sorting through fees with slightly different names, you can easily work out how much each loan costs by using a mortgage repayment calculator. They prove that lower interest rates don’t always result in the cheapest loans, as fees can bump up your outlay.
