“Total switching costs on a standard refinance typically run $500 to $2,000 when there is no break cost. Against the interest saving, most borrowers recover these costs within a few months. But you need to know the full number going in.” [cite: 187]
Refinancing fees come from two directions: your current lender closing out your existing loan, and your new lender setting up the replacement. [cite: 188] Understanding all of them upfront prevents surprises at settlement. [cite: 189]
Fees from your current lender
- Discharge fee: $150 to $400, charged to close your existing mortgage. [cite: 191]
- Break cost: $0 to potentially substantial, only applies if you are exiting a fixed rate loan early. [cite: 192]
- Settlement preparation fee: $0 to $200 at some lenders. [cite: 193]
Fees from the new lender
- Application or establishment fee: $0 to $600, with many lenders waiving this for refinances. [cite: 195]
- Valuation fee: $0 to $300, frequently waived as an incentive. [cite: 196]
- Legal or settlement fee: $0 to $300, with some lenders absorbing this. [cite: 197]
- Ongoing monthly fee: $0 to $15 per month, worth factoring into any total cost comparison. [cite: 198]
Government fees
Mortgage discharge registration: $100 to $200 depending on state. New mortgage registration: $100 to $300 depending on state and loan amount. [cite: 200]
LMI, the large cost to check first
If your current LVR is above 80%, refinancing to a new lender may trigger a new LMI obligation. [cite: 202] LMI is not transferable between lenders. On a $700,000 loan at 85% LVR, LMI could run to several thousand dollars, more than all other refinancing fees combined. [cite: 203]
How to reduce costs
Many lenders waive application and valuation fees for refinances. Cashback offers of $2,000 to $4,000 are available from some lenders and can offset switching costs. [cite: 205] Negotiating with your current lender for a rate match before formally refinancing costs nothing and sometimes avoids the switch entirely. [cite: 206]
You may consider seeking independent advice from a licensed mortgage broker or financial professional to assess your personal circumstances. [cite: 207] This information is general in nature and does not take into account your objectives, financial situation or needs. [cite: 208] Fees vary by lender, state, and individual loan. Speak with a licensed mortgage broker for a full cost comparison specific to your circumstances. [cite: 209] All loans are subject to lender approval. [cite: 210]
Sources: Money.com.au, Cost to Refinance a Home Loan 2026; Savings.com.au, Costs of Refinancing 2026; NAB, Refinancing Costs; [cite: 211] ASIC MoneySmart, Refinancing Your Home Loan 2025. [cite: 212]
