![]() ![]() Travel/Accommodation Fee – This is sometimes charged by lenders to pay for their travel costs to complete regular site visits of the property. ![]() Want to learn more about the development finance process in general? Download our free comprehensive guide here. Lenders should always give you a quote (or two) from the law firm beforehand. Legal Fees – If the lender outsources the legal work involved in producing the loan documents, these legal costs are often borne by the borrower.This is often refundable in the event the lender doesn’t provide a formal offer on equivalent terms to the indicative but can also be non-refundable. This is normally in the range of $2,000-$10,000 and is netted off the establishment fee, should the loan proceed. Work/Acceptance Fee – A fee that is charged upon signing of the indicative finance proposal for the lender to commence formal credit approval and produce loan documents.Establishment Fee – A fee that is normally charged on the facility limit that is capitalised to the loan and bears interest on day 1 of the facility.a lender doesn’t charge fees on their own fees.) (In some cases, it is charged on the principal lending amount. Line Fee – A per month fee that is normally charged on the facility limit.Interest Rate – The rate of interest that is charged on the amount of the loan that is drawn.Let’s take a deep dive into the different costs that might be seen in a development offer in NZ. Getting blinded by a low interest rate or simply adding up the total cost of funds does not often paint the most accurate picture. Development offers can be tricky to unpack, lenders are often very clever at disguising how much they are charging through a multitude of different fees. ![]()
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