FEES AND CHARGES
Every lender and every product basically has its own set of fees and charges however, it is not as complicated as deciding on a mobile phone plan. For those that have been through that exercise you will know exactly what we mean.
When considering which loan is the right loan for you, it is important to consider upfront establishment fees versus no upfront fees, understand ongoing account keeping fees and know what is meant by no upfront fee – but rather a deferred establishment fee.
Basically a deferred establishment fee (def) is just that – it is a fee that is written into the loan documentation but not applied in the first instance however, should you repay or change the loan early (timeframes vary) a fee (def) is payable at this point. These can be anything from 3% of the loan to less than 1%. This fee does not necessarily act as a deterrent as they often do not come into the effect. If they do come into effect they can be quite expensive.
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