How Much Does it Cost to Refinance?
One of the main reasons to refinance is to improve your financial position.
So you’ll need to know the costs involved in ending one loan and moving to another. Only then can you weigh up the benefits of switching loans. The best way to do this is to speak with your broker, but here are the fees and costs that some lenders may charge:
Discharge Fee: A lender may charge you a termination fee.
Break Cost: If you have a fixed rate loan you could be charged a break cost fee.
Application Fee: This is often charged on settlement of the loan.
Valuation Fee: A lender can charge this fee to have your property independently valued.
Early Exit Fees: May be payable if you’ve had your loan for less than a specified period (e.g. 5 years).
Settlement Fee: A fee charged once the loan is settled.
Registration Fee: Charged when you switch your mortgage to a new lender. This amount varies from state to state.
Lender’s Mortgage Insurance (LMI): If your new loan is worth more than 80% of your home’s value, a lender will ask you to pay this to protect them from defaults.
Most lenders will only charge you some of these, not all. When talking through your situation with us, we can help you understand what it will cost to end your current loan, and begin the new one.
Most importantly, we’re here to help make the process easier for you. If there’s something you don’t understand or need more of an explanation on, please contact us today.