Refinancing costs

Refinancing will generally have some entry and exit costs in the start and can range from a few hundred to thousands of dollars however it may offer you more flexibility and can save you more money in the long run.

The fees and charges you may need to pay include both exit and entry fees, many of which will depend on your specific situation and current lender.

Exit fees

Typically you can expect to pay a discharge or exit fee when terminating your current loan. You may also need to pay:
  • Deferred establishment fee
  • Deferred settlement fee
  • Penalty interest (fixed-rate loans)
  • Switching fee (when refinancing with your existing lender)

As a guideline, things that will affect which fees you are charged and how much they are, include: the size of your loan; the point you are at in your loan term; which lender holds your current loan; the type of loan (e.g. fixed vs. variable); and whether you are switching loans or changing lenders completely.

Entry fees
There are a range of potential entry fees for your new loan. Again, which fees you have to pay will depend on your lender, loan and what deal your mortgage adviser is able to negotiate for you with your new loan. Fees may include:
  • Legal costs
  • Valuation fee
  • Application fee
  • Duties and taxes
  • Lenders Mortgage Insurance (generally for loans with an LVR greater than 80%)

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