Refinance Costs Australia — Complete Fee Breakdown

Refinancing can save thousands in interest, but the upfront costs can eat into your savings. This guide breaks down every common refinance fee in Australia, which ones you can negotiate, and how to calculate whether the costs are worth it.

Calculate now: Use the Refinance Calculator to see your break-even period and net savings after costs.

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Common refinance costs at a glance

Fee	Typical range	Who charges it
Discharge fee	$150–$400	Current lender
Application fee	$0–$600	New lender
Valuation fee	$0–$600	New lender
Legal/settlement fee	$200–$500	Conveyancer/solicitor
Government registration	$100–$200	State government
Fixed rate break cost	Varies widely	Current lender

Total typical range: $500–$2,000 for variable loans (excluding break costs)

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Discharge fee (exit fee)

Your current lender charges a discharge fee to release the mortgage from your property title. This is unavoidable when refinancing.

• Typical range: $150–$400
• Some lenders may waive or reduce this fee if you ask

Note: "Exit fees" on loans originated after July 2011 are prohibited by law, but discharge fees are still allowed as they cover administrative costs.

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Application fee (establishment fee)

The new lender may charge an application fee to set up your new loan. This covers credit checks, documentation, and processing.

• Typical range: $0–$600
• Often negotiable, especially for larger loans or strong borrowers
• Many lenders waive this fee as a promotion

Tip: Always ask if the application fee can be waived before accepting a loan offer.

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Valuation fee

Lenders require a property valuation to confirm the property value supports the loan amount.

• Typical range: $0–$600 depending on property value and type
• Often waived by lenders for standard residential properties
• More expensive for unusual properties or high-value homes

If the lender offers a free valuation, check whether it's a full valuation or a desktop/automated valuation.

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Legal and settlement fees

You'll need a conveyancer or solicitor to handle the mortgage transfer paperwork.

• Typical range: $200–$500
• Some lenders include this in their service
• Can be higher for complex situations

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Government registration fees

State governments charge fees to register the new mortgage on your property title.

• Typical range: $100–$200 (varies by state)
• Not negotiable

State	Approximate fee
NSW	~$150
VIC	~$120
QLD	~$190
WA	~$170
SA	~$150
TAS	~$150
ACT	~$150
NT	~$150

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Fixed rate break costs

If you're breaking a fixed-rate loan early, your lender may charge break costs (also called early repayment costs or economic costs).

Break costs can be substantial and depend on:

• How much time remains on your fixed period
• How much interest rates have moved since you fixed
• Your loan balance

Get a quote first: Always ask your current lender for a break cost estimate before committing to refinance. Break costs can range from hundreds to tens of thousands of dollars.

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Which fees are negotiable?

Fee	Negotiable?	How to negotiate
Discharge fee	Sometimes	Ask current lender directly
Application fee	Often	Ask new lender, especially for larger loans
Valuation fee	Often	Many lenders waive this as standard
Legal fees	Sometimes	Shop around for conveyancers
Government fees	No	Fixed by state
Break costs	No	Contractually determined

Best strategy: Get quotes from multiple lenders and use competing offers as leverage.

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When do costs make refinancing not worth it?

Refinancing may not be worth it if:

1. Break-even period is too long — If it takes 2+ years to recover costs, and you might sell or refinance again before then
2. Rate difference is small — A 0.1% rate reduction on a $300,000 loan saves only ~$25/month
3. Fixed rate break costs are high — These can wipe out years of savings
4. You're close to paying off the loan — Costs may exceed total savings
5. Ongoing fees offset rate savings — Package fees, offset account fees, etc.

Check your break-even: Use the Refinance Calculator to see your exact break-even period.

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Refinance cost checklist

Before refinancing, gather these numbers:

• Current loan balance
• Current interest rate
• Remaining loan term
• Discharge fee from current lender
• Fixed rate break cost (if applicable)
• New lender application fee
• Valuation fee (or confirm waived)
• Legal/settlement fee quote
• New loan interest rate (and comparison rate)
• New loan ongoing fees

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How to calculate if it's worth it

Simple method:

1. Add up all upfront costs
2. Calculate monthly savings (old repayment − new repayment)
3. Divide costs by monthly savings = break-even months

Example:

• Costs: $1,500
• Monthly savings: $180
• Break-even: 1,500 ÷ 180 = 8.3 months

If you'll keep the loan longer than 8 months, refinancing is likely worthwhile.

For a detailed calculation including cashback and ongoing fees, use the Refinance Calculator.

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FAQs

Can I add refinance costs to my new loan?

Many lenders allow you to capitalise costs into your new loan, but this means you'll pay interest on those costs over the loan term.

Are there any hidden refinance costs?

Watch for ongoing fees like package fees, offset account fees, and monthly account-keeping fees. These can offset rate savings over time.

How can I reduce refinance costs?

• Ask for fee waivers (application, valuation)
• Compare conveyancer quotes
• Look for cashback offers (but check the rate is still competitive)
• Negotiate with your current lender first — they may offer a rate reduction to keep you

Do I pay stamp duty when refinancing?

No. Stamp duty (transfer duty) only applies when you purchase property, not when you refinance an existing mortgage.

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Related guides

• Refinance Calculator
• Refinancing break-even guide
• Refinance cashback explained
• Mortgage quotes guide

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Important: This guide is general information only. Fees vary by lender, loan type, and state. Always get written quotes before making a refinancing decision.