The few lenders that do not charge an application fee must disclose that upfront. Otherwise, it is safe for borrowers to assume that an application fee will be charged after their loan application is processed. However, suppose a borrower has a strong negotiation position, then they can ask the lender if some aspects of the application fee are to be either waived or refunded or applied to costs towards settlement. Generally, application fees are non-refundable, so here are some of the standard application fees associated with different loans to inform borrowers of the potential cost beforehand.
Personal loans. Upfront application fees for personal loans are dependent on the loan amount, meaning they could range up to $600. Well-qualified borrowers with an excellent credit score may only pay a $250 application fee for a personal loan up to $75,000 with a loan term of up to seven years. Short-term loans have comparable application fees as personal loans.
Home loans. When applying for a home loan (i.e., mortgage), application fees are more standardised at a flat rate, which is usually upwards of $1,000 but commonly $600. Yet, the application fee is the most common fee waived for mortgage brokers. Before applying, borrowers should inquire which home loan packages may offer an application fee waiver.
Car loans. Borrowers can expect to pay $100-$500, or on average $200, for the application fee. In the most expensive case, a lender has charged a borrower almost $1,000 for a car loan application fee, but that was due to the cost of the vehicle and associated liabilities. Moreover, unsecured car loan application fees cost less than their secured counterparts.
Refinancing. When borrowers are attempting to refinance their home loan, if they refinance with their current lender, more than likely the application fee will be waived. Otherwise, application fees for refinancing range from $600-$995, averaging at $750.
Commercial loans. Together are commercial and business loans where the application fee does not have a fixed due. Usually, the borrower will have to pay a percentage of the total loan amount or a minimum application fee amount. For example, a lender may offer a $500,000 minimum loan amount, and the application fee is 0.75% of the approved limit, or a $750 minimum application fee due.
Construction loans. Construction loans attract a construction admin fee that ranges from $1,500-$1,750 based on the loan product. Owner builder fees will be higher.