Applying for your first home loan can be an exciting time, but make sure you sit down and read the small print before signing on the dotted line.

Some mortgages come with different types of fees. While your lender should explain them to you at the point of application, it always pays to do your own investigating.

Here are some of the common fees and charges you might come across in your first home buyer loan.

Establishment or start-up fee

This charge has a number of different names, but it essentially refers to a fee you will pay when your home loan is first set up.

Not all mortgages will come with this charge – if yours doesn't, it's possible the fee might be added to your repayments moving forward.

Ongoing fees

In this case, the fees will be categorised as ongoing – namely that they are applied to every payment you make to your lender.

They are usually charged each month and cover the cost of administering your home loan.

Lenders' mortgage insurance

Lenders' mortgage insurance – or LMI as it is often known – is a product taken out by your lender to protect themselves should you ever fall into arrears on your repayments.

Not all lenders will charge it, but it's certainly worth finding out whether yours does by speaking to your lender or mortgage broker directly.

It can amount to thousands of dollars over the course of your repayment plan, although whether you are charged it usually depends on the loan-to-value ratio.

If you've managed to save up a deposit of more than 20 per cent of the value of your property, you might find yourself exempt from LMI.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we'll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.