The costs of refinancing your mortgage can range from very little to thousands of dollars. How much you pay may depend on the loan products and your financial circumstances. A Your Local Finance broker can help you to navigate all the options available.

Typical Set-up Fees

These tend to be similar between different loan products. However, competition is stiff between lenders, and you may be able to get some of these fees waived. Government charges cannot be waived. You may have to pay additional mortgage stamp duty on a new loan in some states. There may be some exceptions, and Your Local Finance can help you with these.

The following set-up fees normally apply.

Refinance Stamp Duty
Stamp duty on a refinanced home loan may need to be paid depending on which state you reside in.  In most cases, you will have to pay the stamp duty again, unless the details of the new loan are the same.  For more information on how much stamp duty you might need to pay, contact Your Local Finance.

Application fees: Some loans may either not have application fees or they may be waived.  If a loan product has waived application fees, make sure you review the interest rate to ensure this hasn’t just been increased.  Remember you want to find the best refinance mortgage rate on the market.

Document preparation, settlement and legal fees: Some lenders may not charge these fees.

Valuation fees: Some lenders may not charge valuations fees, and they may also be dependent on the property’s value.

Typical Exit Fees
Most lenders will also charge an early discharge fees, which can be as much as two months normal repayments!  Lenders may charge exit fees, early repayment fees or deferred loan establishment fees. They may not be excessive, but loans with an introductory rate discount or very low rates will usually have exit fees.

Exit Fee Scenarios

If you are part-way through an introductory discounted rate (sometimes called a honeymoon rate) and choose to refinance the exit fees can be higher than for a standard variable loan. Lenders can have widely differing policies on exit fees, which can make a big difference to your refinancing costs. The fees charged may also be dependent on the size of your existing and new loan refinance. If you refinance with your current lender rather than another,  your fees will probably be lower.

Stretching Your Loan Term

If you refinance for a longer term than your current loan, you will probably have to pay more in interest over the long term. Ask Your Local Finance broker about all the benefits and costs of all options.