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What are the costs to refinance?

 

Although refinancing your home loan has the potential to make you some hefty savings, it’s important to weigh up the costs involved. Here’s the lowdown on the typical fees and costs involved.

Loan discharge fee

What is it? A fee paid to your current lender to cover the administration expenses involved with paying out your existing loan.

How much? Loan discharge fees vary depending on the lender, but as a rule of thumb expect to pay around $350.

Who is it paid to? Your current lender.

Fixed loan break costs

What is it? If your current loan is on a fixed rate, you’ll likely need to pay to finish the fixed term early (in other words, it’s a fee for ‘breaking’ the fixed term of the loan). The longer the length of time left on the fixed term, the higher the break costs will be.

How much? A number of variables need to be taken into account when calculating how much the break fee will be. These include the length of time left on the fixed term, the agreed fixed interest rate and whether current interest rates are higher or lower than when the loan was first fixed.

Who is it paid to? Your current lender.

Application fee

What is it? In some cases your new lender may charge an application fee to cover the administration costs to set up your new home loan. Other names for an application fee include lending establishment fee or document preparation fee.

How much? Once again, it varies depending on the lender and the type of home loan. However some lenders will waive application fees entirely. St.George, for example, will waive the application fee if you take out your new loan with our Advantage Package# ($395 annual package fee applies).

Who is it paid to? Your new lender.

Settlement fee

What is it? This covers the costs involved with paying out your current lender and arranging to switch to your new mortgage.

How much? Around $100 but this varies by lender.

Who is it paid to? Your new lender.

Property valuer fee

What is it? Your new lender will need to have your property valued to determine what its current market value is and if they are prepared to lend on it.

How much? Generally between $100-$200, but some lenders will waive the property valuer fee. St.George waives the property valuer fee if you take out a new loan with our Advantage Package # ($395 annual package fee applies).

Who is it paid to? Your new lender.

Mortgage registration fee

What is it? A state government fee for registering your new home loan. Because your property will be used as security for your new home loan, state governments require all mortgages to be registered. That means should you sell your home in the future, buyers can check for any existing claims on the property.

How much? Varies depending on the state or territory.

Who is it paid to? The amount that needs to be paid is collected by the new lender who will then pay it to the relevant state or territory revenue office.

Mortgage discharge registration fee

What is it? Another state government fee that’s payable when you switch from one home loan to another.

How much? Varies depending on the state or territory.

Who is it paid to? The amount that needs to be paid is collected by the new lender who will then pay it to the relevant state or territory revenue office.

Title search fee

What is it? As the name suggests, this fee is charged for checking the public records to confirm you’re the legal owner of your home.

How much? Varies depending on the state or territory.

Who is it paid to? The amount that needs to be paid is collected by the new lender. They’ll then pay it to the relevant state or territory revenue office.

Any recommendation made in this article does not take your objectives, financial situation or needs into account. Read the terms and conditions at stgeorge.com.au before making a decision and consider if the product is right for you.

Refinance with us

Switch your home loan to St.George and you could get $4K cashback^.

Find out more

How to refinance a home loan

See our step by step guide on how to switch over.

Find out more

Why refinance your home loan?

Here’s the rundown on why you might want to refinance your loan and costs involved.

Find out more

Important information

Any recommendation made in this article does not take your objectives, financial situation or needs into account. Read the terms and conditions before making a decision if the product is right for you.

#Advantage Package Terms & Conditions (PDF 144KB) apply. A $395 annual package fee applies and is payable from a St.George Complete Freedom transaction account. Before deciding to open a St.George Complete Freedom account, read the Terms & Conditions, and consider if the account’s right for you. 

^How does the refinance cashback offer work: Conditions, credit criteria, fees, charges, eligibility criteria and exclusions apply. Apply between 8th December 2021 to 31st May 2022 and settle by 31st August 2022 for refinance applications. Offer may be varied or withdrawn at any time. Min loan amount $250k and LVR up to 80%. Offer available for Owner Occupier with Principal & Interest repayments and Residential Investment Loans (Principal and Interest & Interest Only repayments). Advantage Package ($395 annual package fee and T&Cs apply) and Basic Home Loans. Limit of one $4,000 cashback payment regardless of the number of applications, applicants, properties or loans involved per 12 month period. For joint applications, only one cashback payment will be paid to the primary applicant. Excludes Owner Occupier Interest Only, residential lending originated under family or company trusts and refinances within Westpac Group (Westpac, St.George, Bank of Melbourne, BankSA and RAMS). The cashback will be paid into a St.George transaction account within 60 days of settlement. This account must be in the same name as the home loan account and linked to the home loan at settlement. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters. 

LVR stands for the initial loan to value ratio at loan approval. LVR is the amount of your loan compared to the banks valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan. Any applicable LVR discount has been included in the advertised eligible rate.