The fees and charges trap

Loan contracts can be very detailed, packed full of confusing words and legal disclaimers. One section that you should study with a magnifying glass is the ‘schedule of fees and charges’:

  • $ Make sure you know whether you can make changes to your repayments.
  • $ Find out how much it will cost if you default on a repayment.
  • $ Are there fees associated with ordering a statement ahead of time?
  • $ Most importantly, what establishment fees will you have to pay at the settlement of the loan? If you don’t know this amount, you might not be able to proceed with your purchase and you could lose your deposit.

It is critical that you take the time to research the different loan options available to you, and ask plenty of questions to ensure that the loan you choose is the best option for you.

Talk to your Mortgage broker for help with this.