Some banks offer to bear and pay the legal fees, stamp duty and disbursements payable for the loan documentation. Of course the cost thereof would have to been taken into account by the banks in determining the interest rates offered for such loan packages.

Zero Cost Packages are attractive to purchasers who having paid deposit sum for the purchase of their property cannot now afford to pay the cost of the loan documentation (which may vary from approximately 1.25% to 2% of the loan amount). If you can afford to pay the cost of the loan documentation, you have to weigh the cost thereof against the higher interest rates chargeable.

Invariably Zero Cost Packages come with a high penalty fee in the event that you prepay the loan early.