Refinancing costs

[C Stewart]

Hi everyone,

Got a quick question? I'm thinking of refinancing to save some money but I'm concerned about the upfront costs I might incur. I've heard there's some government charges on top of the bank charges when you refinance? Does anyone know what these government charges are they and how much they cost in ACT/NSW?

Thanks,
Curtis

 

[Jamie M]

Hiya

Off the top of my head it's around $200 - $300 for govt fees depending on the state. You've also got your current lenders discharge fee and possibly other deferred fees as well as the possibility of the new lenders app fee. All up, it's usually around the $600 mark.

Cheers

Jamie

 

[Redom]

I think $600 would be near the minimum. To be conservative, i budget for around 1k for a refinance.

Couple hundred for government charges ($300). Couple hundred for discharge fees ($300). Potential upfront fees with new lender to make the rest (settlement/legal/application/val).

Im not certain on this, but older mortgages may have other exit fees. Rudd Government reformed ban on exit fees in 09 I believe, but this did not apply to already existing mortgages...

 

[Jamie M]

$600 is an estimate figure - obviously it varies quite a bit depending on all the variables. To get an accurate figure op needs to call current lender and get a payout figure.

Depending on the bank they're with they might be able to talk to the retention team to get a better deal without needing to refi.

Some lenders provide cash rebates too.

Cheers

Jamie

 

[Terry_w]

There would be a discharge of mortgage and a registration of the new mortgage. About $120 each.The outgoing lender may charge a small fee on top to attend to the discharge - about $300 generally including the discharge.
If your loan is older, pre 2009 then there could be some exit fees as well.

 

[Peter_Tersteeg]

My software tells my the registration and discharge of mortgage fees are $125 each for the ACT and $107 each for NSW.

Google just refers to a lot of government websites which don't actually provide a figure (and digging deeper through OSR websites will put me to sleep).

Assume to government registration related costs to move are going to be $250.

You've also got exit costs from your existing lender, and entry costs with the new lender. There's a number of variables involved, but if you simply assume to total cost will be about $1,000 you're unlikely to be disappointed.