Australian property finance is a well establish, competitive and highly regulated activity.
As such, the costs involved are very reasonable when arranging your loan. Costs would be split between the set up fees and the ongoing loan.
Loan Set Up
Typically there is an Establishment fee or Application fee when your loan is approved with a bank. This is typically between A$300 to A$750. At various times some bank offer incentives and reduce this if you are lucky.
Most banks do not require this to be paid until they have assessed your application and have confirmed their willingness to provide the loan.
This is true for both a formal application and also if you are seeking a pre approval prior to purchase.
If you use a Licenced Finance Broker, such as Specialist Mortgage, you should not be charged a brokerage fee, as the bank would normally remunerate the broker and therefor there is no need for any additional direct charge by the broker. At Specialist Mortgage we do not charge any brokerage fees to our clients.
When the loan is approved and progresses to draw down, there will be additional costs such as loan documentation, property valuation fee and settlement attendance fees. These are usually very modest and in many cases included in the application fee.
Under Australian lending regulations, the bank is required to clearly detail all potential costs when they make the loan offer so there should be no surprises for you.
Many banks offer special packages that include discounted interest rates. It may be that an annual bank fee is charged for you to obtain this, and is worth considering as it may lead to substantial savings. Once again, the bank is required to advise you of all potential ongoing fees on the loan, including monthly charges and statement fees, in advance.