What are the costs associated with refinancing a mortgage?

Typical refinancing costs in Australia include a discharge fee on your old loan ($150–$400), an application or establishment fee on the new loan ($0–$600), a valuation ($0–$400), a settlement fee ($100–$300), and government mortgage registration and discharge fees (around $150–$350 combined). If you're exiting a fixed-rate loan early you may also pay a break cost, and if your loan-to-value ratio is above 80% you may be charged Lenders Mortgage Insurance. All up, most refinances cost roughly $500–$1,500 in fees, though many lenders offer cashback that can offset or exceed this.

How much does it cost to refinance a mortgage in Australia?

For most borrowers the out-of-pocket cost is between $500 and $1,500 once you total the discharge, application, valuation, settlement and government fees. Costs can be higher if you break a fixed-rate loan or trigger LMI. Lender cashback offers (often $2,000–$4,000) frequently cover these costs entirely.

Are there hidden costs when refinancing?

The two costs that surprise people most are fixed-rate break costs (charged if you leave a fixed loan before the term ends) and LMI (re-charged if you've built up less than 20% equity). A broker can check both before you apply so there are no surprises.

Can I avoid refinancing costs?

Often, yes. Many lenders waive application and valuation fees and offer cashback to attract new borrowers. You generally can't avoid the small government registration and discharge fees, but the net cost of refinancing is frequently zero — or even positive — once cashback is applied.

Is it worth refinancing despite the costs?

If a lower rate saves you more than the switching costs over the time you plan to keep the loan, refinancing is usually worthwhile. Even a 0.5% rate drop on a large balance can save thousands a year, far outweighing a few hundred dollars in fees.

Mortgage Refinancing Costs in Australia

Refinancing your home loan in Australia usually costs between $500 and $1,500 in fees — but many borrowers pay little or nothing once lender cashback is applied. Here's exactly what you'll be charged and how to keep those costs down.

The costs of refinancing, at a glance

Cost	Typical amount
Discharge / exit fee (old lender)Charged to close out your existing loan.	$150 – $400
Application / establishment fee (new lender)Many lenders waive this to win your business.	$0 – $600
Property valuationOften free, but some lenders pass it on.	$0 – $400
Settlement / legal feeCovers the legal transfer of your mortgage.	$100 – $300
Mortgage registration & discharge (government)State government fees to update the title.	~$150 – $350
Fixed-rate break cost (if applicable)Only if you exit a fixed loan early.	Varies — can be $1,000s
LMI (if your LVR is above 80%)May be re-charged if you have less than 20% equity.	1% – 5% of the loan

How cashback can wipe out your costs

To win new borrowers, lenders frequently offer cashback of $2,000–$4,000 when you refinance to them. That often covers every fee above and leaves you ahead before you've even started saving on a lower rate. A broker compares these offers across dozens of lenders so you capture the best deal.

The two costs that catch people out

Fixed-rate break costs — leaving a fixed loan early can cost thousands, depending on how rates have moved since you locked in.
Lenders Mortgage Insurance (LMI) — if you now have less than 20% equity, you may be charged LMI again on the new loan.

Is refinancing worth the cost?

If a lower rate saves you more than the switching costs over the time you plan to keep the loan, refinancing pays for itself. Even a 0.5% rate drop on a large balance can save thousands each year. Run the numbers with our refinance calculator to see your potential saving.

This guide is general information only and not financial advice. Refinancing costs and eligibility depend on your lender and circumstances. Speak to a XLOANS broker for advice tailored to you.

What are the costs associated with refinancing a mortgage?

The costs of refinancing, at a glance

How cashback can wipe out your costs

The two costs that catch people out

Is refinancing worth the cost?

Frequently asked questions

Thinking about refinancing?