Refinance Solicitors fees

Hello there,

I'm just hoping if someone can shed a light on this because this is very new and strange to me.

I've recently refinanced 2 loans from Bank 1 and Bank 2 to Bank 3. I've cross- collateralise the new loan with bank 3 so it's 1 mortgage. Here's the charges after settlement:

BANK 1 EXIT FEE -$195.00
BANK 2 EXIT FEE -$250.00

Galilee Professional fee (for acting on behalf of Bank 2) - $337.92
PEXA LODGEMENT FEE -$212.80
Galilee Professional fee (for acting on behalf of Bank1) - $105.00
PEXA LODGEMENT FEE -$212.80

SETTLEMENT FEE -$250.00
PACKAGE FEE -$350.00
ADDITIONAL PROPERTY FEE -$150.00
VALUATION FEE -$36.80

I'm just wondering if the professional fees ( 337.92 & 105.00) are normal? I'm being charged 3 times solicitors fee. I've refinanced no less than 5 times I've never had to pay solicitors more than once. If you have refinanced, do you have to pay professional fees for all banks involved?

 

Is this Pepper? when I used them my conveyancer couldn't believe how expensive their solicitor fees were.

 

Just to be clear, did you combine 2 loans into one?

If so, you need to get your structure looked at ASAP- if one is a rental property it’ll muck up your deductions which will end up costing you way more than those solicitor fees.

 

Non bank lender?

I can only see 2 solicitor fees relating to the exit and another relating to the entry.

Not a good set up

 

I decided to show the banks I hope it's not in violation of the forum rules. The refinance already settled. The fees were not disclosed upfront.

I got this email today.

Citibank loan funds $772,000.00
Package Fee – $350.00
Valuation Fee – $36.80
Additional Property Fee – $150.00
Galilee Professional Fee $250.00

Payout figure – $260,68.82
Discharge of Mortgage registration fee – $106.40
Mortgage of land registration fee – $106.40
Galilee Professional fee (for acting on behalf of ME Bank) – $105.00

Payout figure – $506,777.23
Discharge of Mortgage registration fee – $106.40
Mortgage of land registration fee – $106.40
Galilee Professional fee (for acting on behalf of Pepper) – $337.92.00

So it's not Pexa that charge those fees apparently but Galilee on behalf of Citibank.

Are those fee reasonable? I've never had to pay so much professional fees...

 

I don't know much about this. My broker said it should be ok as both those loans are investments and have LVR of only 65%.

 

Why did you crosscol?

 

This is the problem with most people. Worrying about a couple hundred they paid, and not worrying enough about the stuff (loan advice) you got for free.

 

your broker is one to be avoided.

 

Good point tomodachi is worried about the thing he doesn't have to worry about - a fee which would be unavoidable, but not worried about the cross coll.

 

Which fees are you talking about?
And it probably doesn't matter whether the fees are reasonable or not as they would have been disclosed and already incurred. You are worrying about something that cannot be changed.

 

The professional fee from Galilee of $692.92. (250+105+337.92). This is from moving 2 loans to Citibank. I've never paid that much solicitor fee for a refinance. I'm challenging Citibank because the fees (105+337.92 only) were not disclosed in any letter of offer of any of those banks.

 

I did it because my broker said I have to in order to get a better rate. He said to uncross I just need to tell him and it's done as long as LVR is 80%.

 

Your broker has put you in a substandard structure. How substandard depends on a few things - should be easy to fix though. I’d be making him uncross and split the loans ASAP. Sounds like he’s just making it easy for himself more than anything.

 

How much better, and do you understand the risks of crosscol?

 

Who are you moving to?

Galilee appears to be acting for citibank and for pepper and for Citibank.

Sounds like the $337 relates Galilee acting for pepper.

$105 relates to Galiee acting for ME Bank

 

Now you will be up for more costs to uncross.
I doubt it resulted in a better rate.