Close this search box.
Home Loan Variable: 5.94% (5.95%*) • Home Loan Fixed: 5.79% (6.39%*) • Fixed: 5.79% (6.39%*) • Variable: 5.94% (5.95%*) • Investment IO: 6.19% (6.85%*) • Investment PI: 5.99% (6.61%*)

What is a Risk Fee?

A Risk Fee is a once-off charge payable by you when the amount of money you borrow for the purchase of a home or asset if higher than that lender’s acceptable LVR. For a home loan, this is usually 80% of the value of the home (80% LVR). The fee is charged to reduce the possible financial loss that a lender may incur if you are unable to repay your loan.

While Lender’s Mortgage Insurance (LMI) is a type of risk fee, usually when a lender charges you a risk fee, it’s a fee in place of LMI. Low Doc Loans are an example where some lenders may charge you a risk fee when the amount you borrow is higher than 60% of the value of the property i.e. a 60% LVR.

The risk fee can be significant is size, so it’s important to be aware of the amount and the impact it may have on how much you can borrow. We help you you determine if this fee is applicable in your circumstances.

Ask us a question and we will get back to you within 1 working day

  E. Australia Standard Time [ UTC+10, Default ] [ CHECK TO CHANGE ]

  Want to have a no-obligation discussion?

Related FAQs:

Loungeroom with Fireplace

No Deposit Home Loans

Most lenders have moved away from the no-deposit home loan, although there are a few products available with very strict criteria. Excluding the no-deposit opportunities made available to the medial industry and other …

Read More »
Holding House in Hand

What is the Role of a Conveyancer?

Conveyancing is the legal process of preparing and organising the required documents involved in the transfer of property from one person to another. The conveyance of a property is undertaken by both those who are …

Read More »

Share this FAQ

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest