How much does it cost to refinance a home loan in Australia?

Typically around $700 to $1,500, covering the old lender's discharge fee, government mortgage registration and discharge fees, and sometimes new-lender application or valuation fees. Fixed-rate break costs or new Lenders Mortgage Insurance can add substantially more.

What is a discharge fee?

A fee your current lender charges to close the loan and release the mortgage, commonly $150–$400.

Do I pay LMI again when refinancing?

Only if your equity is below 20% of the property value at the new lender. LMI is not transferable, so refinancing under 80% LVR can trigger a new premium — often thousands of dollars.

Knowledge base / Refinancing

How much does refinancing actually cost?

Secure Finance · Refinancing · Updated July 2026

For most Australian borrowers, refinancing costs roughly $700–$1,500: a discharge fee from the old lender, government registration fees, and sometimes application or valuation fees at the new lender. Fixed-rate break costs and new LMI are the two exceptions that can make it far more expensive.

The standard costs

Cost	Typical range	Notes
Discharge fee (old lender)	$150–$400	Charged to close the loan and release the mortgage
Government fees	$250–$500	Mortgage discharge + registration, varies by state
Application/settlement fee (new lender)	$0–$600	Frequently waived on competitive products
Valuation fee	$0–$300	Often free for standard residential properties
Package/annual fee (new loan)	$0–$400/yr	Ongoing — weigh against rate and features

The two costs that change everything

Fixed-rate break costs

Leaving a fixed term early can trigger break costs based on how far rates have moved since you fixed and how long remains. These range from trivial to tens of thousands of dollars. Always get a written break cost quote before committing — and if it's large, the better play is usually timing the refinance to your fixed rate expiry.

Lenders Mortgage Insurance (again)

LMI doesn't transfer between lenders. If your equity is below 20% at the new lender's valuation, a fresh premium applies — often thousands. For most borrowers under 80% LVR this simply never comes up; for recent buyers it can be the deciding factor.

Cashbacks and honeymoon offers

Refinance cashbacks can offset switching costs, but treat them as a bonus, not the reason to move. A cashback attached to an uncompetitive ongoing rate costs more than it gives within a couple of years. The durable question is the one behind the Rate Savings Calculator: what's the net first-year saving, and does the rate stay competitive after that?

So when do the costs make sense?

Rate Monitor's working rule: a refinance is worth discussing when the first-year saving may reach at least $2,500 after a completed refinance — comfortably clear of typical switching costs. Below that, the effort often isn't justified; above it, the maths usually speaks for itself. More on the decision in when is refinancing worth it.

FAQ

Are refinancing costs tax-deductible?

For investment properties, borrowing costs are generally deductible over time — confirm specifics with your accountant. Owner-occupied refinance costs are not deductible.

Can the new lender cover my costs?

Some waive application and valuation fees, and cashback offers can exceed total switching costs. Your net position depends on the whole package.

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General information only, prepared by Secure Finance Services Pty Ltd (ACL 465059). It does not consider your objectives, financial situation or needs. Fee ranges are indicative and vary by lender and state.