Discharge and refinance cost?

I'm trying to figure out the threshold amount of interest/fees savings in order to make it worthwhile to move lenders (refi).

Say I have a $250k loan PPOR no LMI 80% LVR (plain vanilla type of loan), and want to refinance, how much interest and fee savings would it take for it to be worthwhile considering the cost of discharging a loan from old lender and applying for a refi to another lender?

I was thinking:
Discharge and legal fees to old lender $500
Valuation application and legal fees payable to new lender $500

So the new loan should save me more than $1000 to make this refi sensible?
Are there other fees I'm missing?

Assuming other things being equal e.g. quality of service or whatever.
 
That's about right. I usually work off needs to be at least $1k pa saving to even consider a a straight refinance (where no new funds are needed).

If your at 80% your existing lender may also sharpen their rate.
 
Yep - generally budget around $1k for a refi. I agree with Marty though - if it's a refi for a cheaper product than ask your current lender to match before jumping ship.

Cheers

Jamie
 
So the new loan should save me more than $1000 to make this refi sensible?
Are there other fees I'm missing?

Assuming other things being equal e.g. quality of service or whatever.
I just got loan docs through where the refi costs are $927 That is Victoria, which seems to be higher than WA. The WA loans are around $380 for the new lender. I think $1k is a good number to work on.
 
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