Australia's small, non-bank lenders have begun applying small increases in its upfront home loan fees and discharge fees in response to the loan exit fee ban.

Smaller lenders such as Aussie, the Greater Building Society and ME Bank will apply the followng rates beginning on 1 July:

- The Greater Building Society will introduce a $500 application fee on all of its home loans from 1 July

- Aussie will increase fees on its fixed rate home loans by a total of $185 from 1 July. This consists of a $100 application fee increase, a $50 settlement fee increase and a $35 increase to its discharge fee

- ME Bank has introduced a new $150 legal fee and $150 valuation fee on all of its home loans, increasing its upfront fees by a total of $300

Mozo.com.au managing director Rohan Gamble expects to see more smaller lenders increasing upfront and administration fees on home loans over coming weeks to recoup lost exit fee revenue.

Mr Gamble said, "It's significant that these increases are being driven by smaller lenders and mutual societies, while the big banks, who are normally the first to move on price increases, have not moved an inch. This seems to confirm fears that smaller lenders will be most hurt by the exit fee ban and will need to reprice their loans accordingly."

"Borrowers should remember that even if they are confronted by a large upfront fee, the interest rate is still the main factor in determining the overall cost of the loan. It's more important than ever for borrowers to use the comparison rate to check the true cost of the loan."

"Financial comparison websites such as Mozo.com.au help consumers to compare comparison rates as well as total interest and fees paid over the life of the loan to determine the best value home loans for their circumstances."