It takes lenders time and manpower to set up a mortgage, which is why you’ll typically be charged an establishment fee at the start of the loan. (You might also be charged a settlement fee, a valuation fee and a solicitor’s fee; however, these fees are charged by third parties, not your lender.)
By the way, just as it takes time and manpower for a lender to set up a mortgage, it also requires work to close a mortgage. That’s why you’ll typically be charged a discharge fee when you close your home loan account – either because you’ve paid it off or refinanced to another lender.
If your mortgage is a fixed-rate loan, you might be charged a break fee if you end the loan early – for example, two years into a five-year term.
If you refinance, your lender might charge you an exit fee. Well Home Loans doesn’t charge exit fees, but some lenders do for home loans that were signed before 1 July 2011.