1st year interest
This is the rate you’ll pay on your home loan for the first year. This interest rate might be different to the following years, depending on the package you choose.
You have three flavours to choose from: fixed, variable and board. Bear in mind the fixed rate will eventually become a variable or board rate.
- Fixed rate: Your interest rate is locked in so you’ll pay the same interest rate over a certain amount of time
- Variable rate: You’ll pay a lower interest rate for the first few years of your loan, and after that the rate will adjust to be in line with market interest rates.
- Board rate: The Board rate is determined by the bank at any given time. These might seem like a great deal, but they can change at any time for any reason.
Lock in period
This is an amount of time where you can’t switch banks, mortgage brokers or other home loan providers without paying a fee. You’ll usually get a special interest rate during your lock in period. If you want to sell your property or refinance during the lock in period, make sure you take into account, the fee you’ll pay.
This is the full amount you’ll repay over the lifetime of your mortgage loan, including the loan amount and the interest you’ll pay. We’re pretty smart bears over here at GoBear but even we can’t predict the future! What we’re saying is that your total repayment is based on current rates but these rates may change over time.
When refinancing your home loan, your new bank might pay for your legal fees associated with switching providers. All bears have claws, but we’re always wary of clawbacks - so be careful if you switch loan providers again because you might have to pay this legal subsidy back.
You’ll pay this fee when the bank appoints a professional to assess your den’s market value. Depending on the size or the value of your property this fee ranges between $150 and $700.
Late payment fee
Yuh oh, did you forget to repay your home loan on time? If so, the bank might charge you a late payment fee. This fee isn’t chump change – it can be a percentage of your loan amount – make sure to put your due date in your calendar so that you don’t miss it!
Early repayment fee
If your loan is for 25 years, but you repay it in 10, the bank will charge you an early repayment fee. This might be a fixed amount or a percentage of your home loan amount, depending on the bank. You should take this fee into consideration if you decide to pay off your loan early, because sometimes it may not make financial sense to pay off your home loan sooner than planned.
Partial repayment fee
When you make extra payments on top of your agreed monthly repayments, the bank might charge you a fee. This can be a fixed amount or a percentage of your loan amount.
This is the fee you’ll have to pay when you cancel your home loan before the bank has transferred the money to you. Point noted is if you see a worthwhile deal at another bank and want to switch, make sure to take this fee into account.
Administrative fee to use 3rd party fire insurer
Most banks have a preferred fire insurer. You’ll have to pay this fee if you choose your own insurer.