What Fees Do I Need to Factor In When Moving My Home Loan to a New Lender?
Total switching costs on a standard refinance typically run $500–$1,500 when there’s no break cost involved. Depending on the interest rate difference, many borrowers recover these costs within several months — but understanding the full cost upfront is important.
The headline rate comparison is only part of the refinancing calculation. The fees associated with switching lenders are real costs that need to be recovered through interest savings before the refinance begins to offset those costs.
Fees From Your Current Lender
- Discharge fee: $150–$400 — charged to close your existing loan
- Break cost: $0 to potentially substantial — only applies to fixed rate loans
- Settlement preparation fee: $0–$200 at some lenders
Fees From the New Lender
- Application or establishment fee: $0–$600 — many lenders waive this for refinances
- Valuation fee: $0–$300 — frequently waived as a refinance incentive
- Legal or settlement fee: $0–$300 — some lenders cover this
- Ongoing monthly fee: $0–$15/month — factor into total cost comparison
Government Fees
- Mortgage discharge registration: $100–$200 depending on state
- New mortgage registration: $100–$300 depending on state and loan amount
The Fee That Catches People by Surprise
The discharge fee from the current lender is the most consistently overlooked cost. It’s not large — but it appears at settlement, and borrowers who haven’t planned for it find it unexpected.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only. Fees vary by lender, state, and loan type. Speak with a licensed mortgage broker for a full cost comparison specific to your circumstances. All loans are subject to lender approval.
Sources: ASIC MoneySmart, Refinancing Your Home Loan 2025; State Revenue Offices (mortgage registration fees); MFAA Industry Intelligence Service Report 2025; National Consumer Credit Protection Act 2009.
