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Mutual bank updates fees and charges

Teachers Mutual Bank has announced a range of updates to its existing mortgage product fees and charges, as well as the introduction of new valuation fee, following a review of its offerings.

The mutual banking group has announced that, as of 1 August, it will be increasing the fees of the following mortgage fees:

  • Construction loan administration fee: Rising from $250 to $450. Payable for the administration of unlimited progress payments or inspections per construction loan.
  • Top-up fee for home loan limit increases: Rising from $300 to $390. The fee covers one automated valuation model or desktop valuation and two title searches.
  • Additional valuation and administration fee: Rising from $250 to $330. The fee applies to each additional external valuation required and includes costs of the valuation as well as administration costs. 
  • Variation of security fee: Rising from $75 to $120. The fee covers the cost of preparing and lodging a change of name on a certificate of title, swapping a security, lodging notice of death, plan of subdivision, etc. However, this doesn’t include lodgement fees charged by the government.
  • Rewards Package annual fee: Rising from $200 to $300. Applicable for relevant new loans after 1 August 2019, the annual fee will be debited from the Everyday account when the Rewards Package application is first approved and then every 12 months after, until the Rewards Package is cancelled.

While the establishment fee will remain at $600 (covering the cost of preparing standard documents, three title searches, and one automated valuation model or desktop valuation), it will also now include the cost of settlement attendance.


A new fee of $330 is also being introduced on 1 August, which is an external valuation fee, payable when Teachers Mutual Bank Ltd (TMBL) requires its external valuers to conduct a valuation of the security property. 

However, while the banking group is increasing several of its fees and charges, it has also said that it will be decreasing some costs for customers, and scrapping others altogether.

As of Thursday (1 August), the switch fee (payable when a customer converts to another loan product other than at the end of any fixed rate or interest-only period) will reduce to a new level of $120. This is a reduction of $80. 

Meanwhile, the following fees will be scrapped altogether:

  • Settlement attendance fee: Previously $150, this fee was charged when attendance was required for exchange of documents at purchase, sale or refinance of property. This will be removed from 1 August.
  • Documentation fee: Previously $125, this was charged for the standard mortgage preparation and re-issue of documentation when a change was requested to a loan between approval and funding. This will be removed from 1 August.

The bank’s head of third-party distribution, Mark Middleton, said that the changes were being implemented following “a recent review to its home loan fees and charges”.

However, he emphasised that applications submitted prior to 1 August 2019 but not funded as of that date will still be subject to the existing fees and charges.

“New fees and charges will apply to applications where the conditional approval has expired (i.e. 90-day approval period), and a new assessment is required on or after 1 August 2019,” he added in a broker update.  

Last week, TMBL revealed that it would be revising its home loan serviceability assessment policies, in response to the Australian Prudential Regulation Authority’s changes to its home lending guidance.

The mutual banking group – which includes Firefighters Mutual Bank, UniBank and Health Professionals Bank – has now lowered its interest rate floor from 7.25 per cent to 5.5 per cent and increased its buffer rate to 2.5 per cent.

The changes came into effect for all new home loan applications as of Friday, 26 July.

[Related: Lenders continue easing serviceability policies]

Mutual bank updates fees and charges

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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