Do I Get a Refund of Application Fees if the Valuation Result was Below Expectations?
Applying for a home loan involves a number of steps that take place behind the scenes before a loan can be approved and settled. Each stage of the process requires professional services, compliance checks, and operational resources. As a result, borrowers may incur several fees during the home loan application process. Common home loan fees may include an application fee, settlement fee, property valuation fee, title insurance, and in some circumstances Lenders Mortgage Insurance (LMI). These fees help cover the costs associated with assessing the loan application, verifying the property, performing compliance and risk checks, and completing the settlement process. One of the most significant stages in the home loan assessment process is the property valuation. A valuation determines the estimated market value of the property and plays an important role in a lender’s ability to approve the loan. Because the valuation must be conducted by an independent professional valuer, the lender is required to pay for this service once it has been completed. As a general rule, once a service has been completed, the associated fee is not refundable regardless of the outcome. Accordingly, valuation fees are not refundable once the valuation has been carried out, even if the loan application does not proceed or is declined. The application fee covers the administrative and operational work required to process a loan application. This includes documentation handling, compliance verification, internal review, and the formal credit assessment performed by the Mortgage House Credit Department. Once this credit assessment has been completed, the application fee reflects work that has already been performed and therefore application fees are generally not refundable. However, Mortgage House recognises that each lending situation can be different. In rare circumstances and at the lender’s discretion, requests may be reviewed on a case-by-case basis. Where appropriate, Mortgage House may consider providing a partial refund of the application fee. In these situations, the refund amount is calculated after deducting the hard costs already incurred, including labour, administrative processing, valuation expenses where applicable, and a one-time $100 processing fee, with the remaining balance refunded to the borrower. At Mortgage House, transparency and fairness are fundamental principles of the lending process. When you apply for a home loan with one of our lending specialists, all potential fees are explained clearly at the outset. Borrowers are informed which fees may apply and when those fees become non-refundable so they can proceed with a clear understanding of the process. This transparent approach helps ensure borrowers understand the home loan application process, property valuation requirements, and associated lending costs, allowing them to move forward with confidence and clarity.
How Much Deposit Do I Need?
Most Australians still hear the old rule: “You need 20%.” That is often a strong target because it can reduce lender risk and, in many cases, helps you avoid Lenders Mortgage Insurance (LMI). But the real answer is more nuanced: your required deposit depends on your loan-to-value ratio (LVR), borrower profile, property type, location, evidence of savings, and lender policy. To make this practical, this guide uses a modern reference point: a $1,000,000 property. That is not because every home costs that amount, but because examples like “$300,000 homes” no longer reflect the lived reality of most metro borrowers, and outdated numbers erode trust instantly. General information only: This page provides general information and does not take into account your objectives, financial situation, or needs. Credit is subject to assessment, lender criteria, and verification. Fees, costs, and conditions vary by product, state, and borrower circumstances. Apply Online | Request Callback At-a-Glance: Deposit Scenarios for a $1,000,000 Property Below are simple illustrations of deposit sizes at common LVR bands. These figures exclude other costs such as stamp duty and government fees (which vary by state and buyer type). 20% deposit (80% LVR): $200,000 15% deposit (85% LVR): $150,000 (LMI may apply) 10% deposit (90% LVR): $100,000 (LMI often applies) 5% deposit (95% LVR): $50,000 (limited pathways; stricter criteria; LMI often applies) A “deposit” is only one part of the upfront cost. In many real-world purchases, borrowers also need to budget for: Stamp duty (or concessions where eligible) Transfer and registration fees Legal and settlement costs Building/pest inspections (where relevant) Lender fees (where applicable) A competent plan treats deposit + costs as a single “upfront funding requirement”. What Does “Deposit” Really Mean? In everyday language, “deposit” means the money you contribute toward the property purchase price. In lender terms, the deposit interacts with: LVR (Loan-to-Value Ratio): The percentage of the property value you are borrowing. Example: Borrowing $800,000 against a $1,000,000 property = 80% LVR. Genuine savings: Many lenders want evidence that at least part of your funds were accumulated over time (for example, consistent savings over three months or more), not purely a last-minute lump sum. LMI (Lenders Mortgage Insurance): An insurance premium typically charged when the LVR is above a certain threshold (often above 80%). It protects the lender, not the borrower. Whether it applies and how it is calculated depends on the lender and the overall risk profile. Deposit Bands Explained (What Changes as the Deposit Changes) 20% Deposit (80% LVR): The “Strong Position” Scenario A 20% deposit can offer: Lower perceived risk to lenders Often improved pricing or product access (varies by lender) Frequently reduced or avoided LMI (subject to lender rules) More resilience if property values fluctuate For a $1,000,000 purchase, that typically means $200,000 deposit, plus costs. Who it suits: borrowers prioritising stronger approvals, pricing stability, and lower risk exposure. 15% Deposit (85% LVR): A Common Middle Path A 15% deposit can be workable, but: LMI may apply Lender policy scrutiny tends to increase Genuine savings evidence can become more important For a $1,000,000 purchase: $150,000 deposit, plus costs. Who it suits: borrowers with strong income quality and clean credit who want to buy sooner rather than wait for the full 20%. 10% Deposit (90% LVR): Feasible, But More Sensitive A 10% deposit can be achievable, but typically comes with: LMI often applying Greater sensitivity to living expenses, liabilities, and documentation Tighter tolerances for credit conduct issues For a $1,000,000 purchase: $100,000 deposit, plus costs. Who it suits: borrowers with stable income and strong serviceability who can demonstrate disciplined money management. 5% Deposit (95% LVR): Possible Pathway, Highest Friction A 5% deposit scenario is often the most constrained: Highest policy intensity Stronger evidence requirements (income stability, expenses, savings story) Property type and location restrictions may apply LMI often applies For a $1,000,000 purchase: $50,000 deposit, plus costs. Who it suits: specific circumstances where the borrower profile is strong and the lender’s policy supports it. Genuine Savings: What Lenders Often Look For Many lenders want evidence that at least part of your funds were accumulated over time. Typical evidence includes: Consistent savings contributions Stable account conduct with limited gambling/overdraft patterns Clear source-of-funds documentation Transparent explanations for any large, unusual credits A deposit story that is clear, documented, and consistent can materially improve approval confidence. Can a Gift Count as a Deposit? Gifts may be acceptable depending on lender policy and your verification evidence. A compliant approach requires: Source of funds clarity Donor identification (where required) Documentation confirming it is a gift, not a repayable loan Bank statements showing the trail Some lenders will treat gifted funds differently from genuine savings, which can affect thresholds and approval considerations. First Home Buyer Support: FHOG and Stamp Duty Concessions If you are a first home buyer, you may be eligible for: First Home Owner Grant (FHOG) Stamp duty exemptions or concessions (state-based) These supports can help narrow the gap, but they do not automatically change lender deposit or servicing requirements. Eligibility, property caps, and rules differ by state and can change over time. For accurate scheme details, borrowers should review their relevant state revenue office guidance and confirm eligibility before committing. First Home Buyers Loan | Read Our Free Guide The Part People Miss: Costs Beyond the Deposit Even borrowers with a strong deposit can get caught out if they do not budget for purchase costs. Depending on your state and circumstances, upfront costs can be significant. A practical rule: treat the project as “deposit + costs + contingency,” not just “deposit”. Tips on Saving a Deposit (Modernised for today’s Reality) Saving for a deposit is less about motivation and more about system design. Build a “deposit budget” in plain EnglishTrack: Rent, food, transport, insurance Subscriptions and discretionary spend Actual surplus each pay cycle Automate savings like a billSet an automatic transfer on pay day into a dedicated savings account. Behaviour beats willpower. Reduce friction by separating accountsOne account for bills. One account for spending. One account for deposit