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Lending Fees

Credit Fees

Establishment Fees

Charged at the time of a loan application for any bank facility. The establishment fee covers costs of the application assessment, document production, document verification, facility drawdown/activation and security verification.

$250.00 (new security) $150.00 (existing security) Fee of $50 payable every six months $30.00 Permanent facility $20.00 Temporary increase $20.00 Permanent increase

Management Fee - Revolving Credit

As an alternative to the drawdown fee set out below, a borrower can choose to pay a monthly management fee. This fee covers the cost of transactions on the loan account including drawdowns and is charged monthly to the loan account on the last working day of each month.

$10.00 per month

Drawdown Fee - Revolving Credit

As an alternative to the monthly management fee set out above, a borrower can choose to pay a drawdown fee per withdrawal from a revolving credit account (excluding automatic payments and direct debits). This fee covers the cost of transactions on the loan account and is charged to the loan account on the last working day of each month.

$2.50 per withdrawal

Service Fees - Personal Overdraft

Charged monthly to the overdraft account on the last day of the month. The fee covers associated maintenance and reporting costs.

$3.00 per month

Rural Overdraft & Business Overdraft

Charged monthly to the overdraft account on the last day of the month. The fee covers associated maintenance and reporting costs. Calculated at the rate of 2% p.a. on the difference between the daily unpaid balance and the overdraft limit. Should the account be in credit, the fee will be calculated on the overdraft limit. A maximum fee of $20 per month applies.

See description for costs

Registration of Caveat Fee

Charged at the time the loan is approved. This fee covers the costs of $165.00 charged by LINZ for registration of the caveat, the release of the caveat and $43.00 payable to TSB Bank for document preparation, registration of the caveat and its subsequent release.

$208.00

Registration/Renewal of Financing Statement Fee

Charged at the time that the loan is approved or upon renewal of the financing statement, as the case maybe. This fee covers costs of $20.00 charged by the Ministry of Economic Development and $5.00 by TSB Bank for registration and subsequent release or renewal.

$25.00

Life Policy Assignment & Re-Assignment Fee

Charged at the time of a loan application. This fee covers the costs of preparing the assignment documentation and dealing with the insurance company.

$25.00

Consent Fee

Charged on a request from a customer’s solicitor and paid by the solicitor on the borrower’s behalf. This fee covers the costs of assessing the request for consent, and where applicable, preparation and/or execution of the consent documentation.

$50.00

Rearranged Security Fee

Charged at the time of an application. This fee covers the costs of the application assessment and, where applicable, document production, document verification and security verification.

$250.00 (new security) $100.00 (existing security)

Change of Loan Facility Fee

Charged at the time of an application. This fee covers the costs of the application assessment and, where applicable, document production, document verification, facility drawdown/activation and loan repayment.

$150.00

Transfer of ownership

Charged at the time of an application. This fee covers the costs of the application assessment and, where applicable, document production, document verification, facility drawdown/activation and security verification.

$250.00

Interest Rate Fixing Fee

Charged at the time of an application. This fee covers the costs of the document production, and verification.

$100.00

Holiday Payment Request Fee

Charged at the time of request. The fee covers the administration of determining and calculating any change in loan payments to ensure the loan remains within its term.

$25.00

Holding Fee

Charged 3 months after the loan is established and quarterly thereafter if the loan remains undrawn. Covers holding costs while funds are held in anticipation of the loan drawdown.

$250.00 per quarter

Security Discharge Fee

Charged on the discharge or partial discharge of a mortgage and on release of a security under the Personal Property Securities Act 1999 and paid by the solicitor on the Borrower’s behalf. This fee covers the cost of preparing a settlement statement and discharge documents.

$100.00 and $25.00 for each additional mortgage or charge

Lender’s Mortgage Insurance Premium

Where lender’s mortgage insurance is required by the bank, the premiums payable in respect of such lender’s mortgage insurance shall be payable at the time of loan drawdown, by the borrower.

Details of the cost of such cover can be obtained from the Bank.

Loan Cancellation Fee

Charged to a borrower immediately following the borrower exercising his/her right to cancel a loan contract under section 27 of the Credit Contracts and Consumer Finance Act 2003. The fee covers expenses incurred by the bank in connection with the contract and the cancellation.

Up to $250.00 where security for the loan was to be new security. Up to $150.00 where security for the loan was to be existing security.

Fixed Loan Prepayment Fee

Charged at the time of a part prepayment of a fixed rate loan. The fee covers the administrative assessment of whether payment of fixed loan prepayment interest is payable. Any fixed loan prepayment interest is in addition to the fixed loan prepayment fee. This fee is waived if the prepayment is not more than 5% of the outstanding loan balance or $10,000.00, whichever is the lesser, in each calendar year. This fee is also waived if the prepayment is for KiwiSaver mortgage diversion payments.

$30.00

Fixed Loan Prepayment Interest

Charged at the time of a part or full prepayment of a fixed rate loan. Where repayment is made during a fixed rate term, the borrower shall in addition to the principal sum, pay an amount equal to any interest revenue loss to the bank as a result of interest rate changes on amounts of principal so repaid for the period from the repayment date to the end of the fixed rate term. The interest revenue loss is the sum of all interest that would have been charged on the loan or that part of the loan which is being prepaid, for the period from the date such amount is prepaid in reduction of the loan until the end of the fixed rate term, calculated at the current interest rate, minus the total resulting from the same calculation with the interest rate being the fixed rate that would apply if an application was made as at the day of such prepayment for the balance of the fixed rate term. If the bank does not offer a loan with a fixed rate term equivalent to the balance of the term of the fixed rate loan that is to be prepaid, then the fixed rate term offered by the bank that is closest to the unexpired portion of the fixed rate term of the fixed rate loan that is to be prepaid, (whether shorter or longer), shall apply. If the calculation results in a negative amount, no fee is payable.

See description for payment calculation

Default Fees

Payment Default Fee

Charged to a borrower’s loan account after a loan has been in arrears for 14 days and weekly thereafter. This fee is to cover costs of reporting and liaising with the borrower.

$35.00

Rates Demand Fee

Charged to the borrower’s loan account on the issue of a demand letter. This fee covers the costs of liaising with the borrower, the local authority and, where applicable, payment of the rates arrears to the local authority.

$50.00

Insurance Arrears Service Fee

Charged to the borrower’s loan account on the payment of insurance over property/assets held by the bank as security. This fee covers the costs of liaising with the borrower/insurer and payment of the insurance arrears to the insurer. This fee is in addition to any insurance premiums that the bank may pay on behalf of the borrower.

$50.00

Loan Demand Issue Fee

Charged to the borrower’s loan account on the issue of demand letter. This fee covers the costs of preparing and sending the demand letter.

$50.00

Property Law Act Notice Fee

Charged to the borrower’s loan account on issue of instructions to the bank’s solicitor. This fee covers the costs of liaising with the bank’s solicitors and document preparation. Charges from the bank’s solicitors will be in addition to this fee.

$100.00

Mortgagee Sale Proceedings

Charged to the borrower’s loan account either on settlement of the sale of the mortgaged property or when mortgagee sale proceedings are terminated. In addition to such charges payable to the bank, the borrower will also be required to pay all fees charged by valuers, solicitors, real estate agencies (which includes marketing and early cancellation fees), debt collection agencies etc. The charges payable to the bank cover the cost of liaising with the various third parties during the mortgagee sale process.

$100.00 per hour

Additional Costs you should be aware of

Costs/Changes relating to the following are also often necessarily incurred due to the requirements of the bank’s mortgage and/or loan approval.

House Insurance

Mortgagors are required to insure and keep insured all assets that are charged or mortgaged to the bank. The payment of the insurance premiums are the borrower’s responsibility. Borrowers should contact an insurer to find out the cost of such insurance. The bank can provide an insurance quote and can also provide details of approved insurers.

Rates

Mortgagors are required to punctually pay all rates, taxes and other charges associated with any property which is charged or mortgaged to the bank. The local authority can provide details of the rates payable.

Leasehold Properties

Where the mortgage is over a leasehold property, mortgagors are required to punctually pay the rent to the lessor. The lessor will be able to provide details of rent payable.

Unit Titles

Where the estate is or a stratum estate under the Unit Titles Act 2010, mortgagors are required to punctually pay to the body corporate all fees set by the body corporate.

Collateral Securities

Borrowers may be required to pay the costs associated with arranging the preparation of any specific security documentation or legal advice that the bank may think necessary to enable it to assess any security arrangements that are outside the bank’s normal lending criteria or policy.

Maintenance

Mortgagors are required to keep all buildings and other improvements on the land covered by a mortgage in favour of the bank in good repair and condition.

Valuations

If borrowers are required to obtain a registered valuation for an application, the report is required to be completed by a registered valuer and on terms satisfactory to the bank and is to comply in all respects with the New Zealand Institute of Valuers Code of Ethics and Practice Valuation Standards that may be applicable from time to time. Such valuation shall be addressed to the bank and is to include mortgage recommendations sufficient for the bank’s requirements. The costs of such valuation are the responsibility of the borrower. Registered valuers can provide details of the costs involved.

Engineers Reports

If borrowers are required to obtain an engineer’s report as part of an application, the report will need to be completed by an engineer satisfactory to the bank. The cost of any engineer’s report is the responsibility of the borrower. Engineers can provide details of the costs involved.

Loan Protection Insurance/ Tailored Loan Coverage/ Term Life Insurance/ Mortgage Redemption Insurance

The bank may require a borrower to arrange such insurance as a condition of loan approval. The borrower will be required to pay all premiums relating to the insurance cover. Details of the cost of such cover can be obtained from the bank.


Effective 29 May 2015. Lending fees are subject to change without notice.