Home loan fees can add thousands of dollars to the total cost of a mortgage. Every Australian lender must provide a Key Fact Sheet in a standard format, which lets you compare the main costs side by side. The sheet shows the establishment fee, ongoing fees, the personalised comparison rate, the total amount to be paid back and the monthly repayment. However, the Key Fact Sheet does not capture every charge or condition. You also need to ask the lender or broker about break costs on fixed-rate portions, fees for using features such as offset accounts or redraw, fees for extra repayments, and any other charges that could apply. This guide organises what the Key Fact Sheet covers and the questions you must ask before you commit.
What the Key Fact Sheet shows
The Key Fact Sheet is compulsory and uses the same layout across all lenders. For the loan amount and repayment type you nominate — principal and interest or interest-only, monthly or fortnightly, variable or fixed or a split — the sheet displays:
- Interest rate (per year): the initial rate you will be charged.
- Personalised comparison rate: a single figure that combines the interest rate and most fees, helping you compare the overall cost of different loans.
- Total amount to be paid back: shows how much you'll repay over the life of the loan, including the amount borrowed and fees.
- Monthly repayment: the regular repayment amount.
- Establishment fees: upfront fees charged when you take out the loan.
- Ongoing fees: fees charged every month or year for administering the loan, also called service or administration fees.
Source: Moneysmart, Choosing a home loan, "Get the Key Fact Sheets" and "Compare interest rates" sections.
What the Key Fact Sheet does not cover
Moneysmart lists seven questions the Key Fact Sheet does not answer. You must ask the lender or broker directly:
- Can I make extra repayments without paying a fee?
- Is there an offset account or redraw facility?
- Are there fees for using loan features?
- Can I switch to a different loan later?
- Are there break costs if I repay the loan early or refinance?
- What happens when a fixed or introductory interest rate ends?
- Are there any other fees or charges that could apply?
Source: Moneysmart, Choosing a home loan, "Questions to ask that aren't covered by the Key Facts Sheet".
Features that may carry additional costs
The source notes that home loans with more options or features can come at a higher cost. These could include an offset account, redraw or line of credit facilities. Most are ways of putting extra money into your loan to reduce the amount of interest you pay. Moneysmart advises weighing whether you will keep enough in an offset to justify its cost — for example, a $50,000 offset balance on a $750,000 loan saves interest on that portion, but a low balance may not cover the fee. Ask the lender or broker for the exact fee structure for any feature you intend to use.
Source: Moneysmart, Choosing a home loan, "Mortgage features may come at a cost" and "Weigh up if features are worth it" sections.
How to compare loans using Key Fact Sheets
- Decide your loan parameters — loan amount, repayment type (principal and interest or interest-only), repayment frequency (monthly, fortnightly or other) and preferred rate type (variable, fixed or split).
- Request Key Fact Sheets from at least two lenders for that exact scenario. You can generally get them from your mortgage broker (if you are using one), from the lender directly, or from the lender's website.
- Record the six Key Fact Sheet fields from each sheet side by side: interest rate, personalised comparison rate, total amount to be paid back, monthly repayment, establishment fees, ongoing fees.
- Ask the seven verification questions (listed above) to each lender or broker and note the answers in writing.
- Add any feature fees you expect to use (offset, redraw, line of credit) from each lender's fee schedule or feature terms.
Questions to verify with your lender or broker
- What is the exact dollar amount of the establishment fee?
- What are the ongoing fees per month or year?
- Are there monthly or annual fees for the offset account, redraw facility or line of credit?
- Can I make extra repayments without paying a fee?
- What are the break costs if I refinance or pay out a fixed-rate portion early?
- What happens to my rate and repayments when a fixed or introductory period ends?
- Are there any other fees not listed in the Key Fact Sheet or fee schedule?
Next steps
- Decide your loan amount, repayment type, repayment frequency and preferred rate type.
- Request Key Fact Sheets from at least two lenders for that exact scenario.
- Record the six Key Fact Sheet fields from each lender in a simple table.
- Ask the seven verification questions to each lender or broker and document the answers.
- Collect any feature fee schedules for offset, redraw or line of credit facilities you plan to use.
- Compare the total amount to be paid back and monthly repayment across lenders, alongside the answers to your verification questions.
General information only. This article explains the fees shown on the Key Fact Sheet and the questions Moneysmart recommends asking lenders. It does not consider your personal financial situation, objectives or needs. Fees, rates and policies vary between lenders and change over time. Always confirm current details with the lender or your licensed mortgage broker before making a decision.