Discharge or settlement fee
Your current lender may charge a fee to close the loan and prepare discharge or settlement steps.
Costs before switching
Check refinance costs
Refinance costs decide whether a lower rate actually helps. Some costs are small, some depend on the lender, and fixed-rate break costs can change the decision completely.
Broker-led review
The saving is what remains after costs.
A lower repayment may be useful, but the cleaner test is whether the new loan improves the position after fees, break costs, features and the remaining loan term are checked.
Costs to include
Application or establishment fee
A new lender may charge an upfront fee to assess and set up the new loan.
Valuation fee
A valuation may be needed to confirm property value and LVR. Some lenders absorb this, some do not.
Government charges
Mortgage registration and discharge charges can vary by state or territory.
Settlement or legal costs
Settlement processing, conveyancer or solicitor involvement may add costs depending on the scenario.
Fixed-rate break cost
If you leave a fixed loan early, ask the current lender for a quote before assuming the switch is worthwhile.
How to think about break-even
Add all switch costs
Include current lender fees, new lender fees, government charges and any break cost that applies.
Estimate monthly difference
Compare current repayments with the estimated new repayment on the same basis where possible.
Check how long savings take to recover costs
If costs are high or you may sell soon, a lower rate may not recover the switch cost in time.
Review features and term
A lower rate can still be weaker if the loan loses useful features or resets the term without a plan.
Do not forget
LMI can reappear
If LVR is high, property value falls or you increase the loan, lenders mortgage insurance may become relevant.
Cashback is not the whole comparison
Cashback offers can have conditions and should be weighed against rate, fees, features and break-even timing.
Debt consolidation can stretch cost
Moving short-term debts into a longer home loan may lower the monthly repayment but increase total interest.
Useful next checks
Use calculators and related pages as preparation only. The figures are estimates and need broker and lender review before you rely on them.
CalculatorRefinance savings calculatorCompare the current loan with a new-rate scenario and see whether switching costs may be recovered.Best forDeciding whether a refinance is worth a broker review before starting lender work.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorHome loan repayment calculatorTest whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.Best forChecking repayment comfort across purchase, refinance, or rate-change scenarios.Estimate only. A broker still needs to check lender policy and fit.Open calculator PageFixed rate endingReview revert rates, refix options, variable options, split loans and refinance timing before expiry.Open PageDocuments needed to refinancePrepare the common ID, income, loan, debt and property evidence before a broker conversation.Open
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Turn the refinance question into a broker review.
Quick Check collects the basic context for emoney. It is not a loan application, approval, credit advice or a loan recommendation.
Refinance FAQ
Questions borrowers ask before changing loans
How much does it cost to refinance?
It varies by lender, state, loan type and whether you are on a fixed rate. The useful approach is to list each cost and compare it with the estimated monthly saving.
What is a fixed-rate break cost?
It is a cost that may apply if you end or change a fixed-rate loan early. The current lender should quote it because it can change over time.
Should I refinance for cashback?
Cashback can help offset costs, but it should not be the only reason. Check conditions, fees, rate, comparison rate, features and the loan term.
Before changing
Check rate, costs, documents and timing first.
Refinance decisions are easier when the whole loan is reviewed, not only the advertised rate.