Key takeaways
- Refinancing costs typically include discharge fees, application fees, valuation fees and settlement costs.
- Discharge fees from your current lender are usually around $300 to $400.
- Application fees range from $0 to $600, and valuation fees from $200 to $400.
- Break costs only apply if you exit a fixed rate loan before the term ends.
Refinancing can save you real money, but only if the savings beat the cost of getting there. Plenty of ads shout about the new rate and stay quiet about the fees to switch. Andy has been broking since 2000, and he lays every cost on the table first, so the decision is based on the full picture, not just the headline.
The Main Costs to Expect
Refinancing costs typically include discharge fees, application fees, valuation fees and settlement costs. Most are modest on their own, but they add up, so it helps to see them itemised.
| Cost | Who charges it | Typical range |
|---|---|---|
| Discharge fee | Your current lender, to close the loan | $300 to $400 |
| Application fee | The new lender | $0 to $600 |
| Valuation fee | The new lender | $200 to $400 |
| Settlement fee | Legal costs and title transfer | $500 to $800 |
Discharge and Application Fees
Discharge fees are charged by your existing lender to close the current loan, typically $300 to $400. On the other side, application fees range from $0 to $600 depending on the lender and product. Some lenders waive the application fee or offer cashback to win your business, which is worth factoring in.
Valuation and Settlement Costs
Valuation fees cost $200 to $400 for the property revaluation required by the new lender, though many lenders cover this themselves. Settlement fees cover legal costs and title transfer, typically $500 to $800. Your broker and settlement agent handle the process, but these are part of the real cost.
Break Costs on Fixed Loans
This is the big one to watch. Break costs apply only to fixed rate loans exited before the term expiry. If you are on a fixed rate and break it early, the cost can be substantial, sometimes thousands, depending on how rates have moved. If you are fixed, always get the break cost figure before you do anything.
Do the Savings Beat the Costs?
The whole point is to weigh the costs against the savings. Add up the fees, then see how quickly your lower repayments repay them. If you break even within a year or so and stay in the loan for years after, refinancing usually wins. Read how much you could save by refinancing alongside this.
How Andy Helps
Andy itemises every cost upfront, hunts out lenders offering fee waivers or cashback, and tells you the break-even before you commit. If the numbers do not stack up, he will say so. See the refinancing page and get in touch.
Refinancing Cost Questions
How much does it cost to refinance?
Often a few hundred to around $1,500 once discharge, application, valuation and settlement fees are added, though many lenders waive some of these or offer cashback. Break costs on fixed loans are separate and can be larger.
What are break costs?
They apply only when you exit a fixed rate loan early. Depending on how rates have moved, they can run into thousands, so always get the figure before breaking a fixed loan.
Can refinancing costs be avoided?
Some can. Lenders frequently waive application or valuation fees, and cashback offers can offset others. Andy seeks out those deals as part of comparing your options.
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