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Plenty of home owners and investors find it worth their while to refinance. Lower interest rates mean lower monthly repayments, and over the course of a loan term this can be thousands of dollars in savings. However, refinancing is rarely cost-free, and often comes with extra expenses that you’ll need to keep in mind.

Home Loan Refinancing Cost Calculator

If you want to work out whether refinancing your mortgage is worth it, our home loan refinance calculator is a good place to start.

Once you enter the following information, you can get a rough idea of how much you’ll need to pay to get your new loan:

  • Current property value

  • Current loan balance

  • Your state of residence

  • Any fees your lender charges for leaving (discharge fees, settlement fees etc.)

  • Any fees the new lender might charge when you join (valuation fees, legal fees, application fees etc.)

Mortgage refinancing costs

Lender refinancing costs

Fees differ from loan to loan, but here are the most common fees you might be expected to pay when refinancing:

  • Application fee: Sometimes also known as an establishment fee, this is paid to the new lender for expenses incurred setting up the new home loan. This can cost up to $1,000

  • Valuation fee: Some refinances will need a lender to appraise the value of your property before refinancing. This generally costs between $200 and $600

  • Discharge fee: This is the fee paid to your old lender for discharging the mortgage early. It can range anywhere from $200 up to $1,000

  • Break fee: If you’re on a fixed-rate loan, you might also need to pay a break fee for the loss to your lender. This can be thousands of dollars - potentially as high as $35,000

  • Settlement fee: Anywhere from $100 to $600

  • Exit fees (for loans taken out before July 2011): In July 2011, the National Credit Regulations prohibited early termination fees for residential loans, with some exceptions (including break fees). If you entered into your loan before July 2011, there’s a chance an exit fee still applies.

Mortgage registration fees

All states and territories charge a fee for registering a mortgage on the public record.

Mortgage registration fee

NSW

$165.40

VIC

$128.50

QLD

$224.32

SA

$187.00

WA

$203.00

TAS

$152.19

NT

$165.00

ACT

$166.00

*Correct as of February 13 2024

Is refinancing your mortgage worth it?

Savings

The main reason borrowers refinance tends to be to take advantage of a lower interest rate elsewhere. Even small reductions to the interest rate you’re paying can mean major savings on your monthly repayments, which extrapolated over a full loan term can be hugely significant.

Imagine a borrower who owes $400,000, with 20 years remaining on their loan term, currently paying 6% p.a in interest. Below is how much they could save from refinancing to other loans with lower rates (data from the Savings refinancing calculator).

Rate

Monthly repayments

Saving

6% p.a

$2,866

$0

5.50% p.a

$2,752

$114

5.00% p.a

$2,640

$226

Once you work out how much you will be saving each month, you can compare this to the upfront cost of refinancing, as calculated above. You can work out how long it will take making repayments at the lower rate until you have fully recouped these costs, which can inform your decision.

Introductory rates and offers

Lenders often have special offers and rates to attract refinancing customers. For a long time, one of the most common was cashback, where lenders would give borrowers a cash bonus in return for their business. At ANZ for example, customers who refinance a home loan of $250,000 or more (with an LVR below 80%) can receive $2,000 in cashback. This can go towards the loan or be given in cash.

Many lenders scrapped cashback offers in 2023, including CommBank, Westpac and NAB, with shareholders concerned about profit margins. However there are several offers that are still valid as of February '24. Some lenders also offer an introductory rate, which is a temporary lower rate that applies to the initial period after refinancing.

Read more: Current cashback offers and deals in Australia

Other considerations

In some cases, there might be other reasons beyond repayments to prefer one lender over another. For example, you might do all your personal banking with the same bank, so could be happy to pay a bit extra for the convenience of using one institution for everything. Other borrowers might decide on (or against) refinancing because they prefer the customer service at another lender.

See more: Pros and Cons of refinancing your mortgage


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Variable
More details
Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Apply In Minutes

Unloan – Variable Rate Home Loan LVR < 80%

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Variable
More details
4.6 Star Customer Ratings
4.6 Star Customer Ratings

loans.com.au – Variable Home Loan (LVR < 90%)

    Fixed
    More details

    Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years

      Variable
      More details
      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute

      Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute
      Variable
      More details

      ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%)

      • Home loan specialists available today
      Fixed
      More details

      Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

        Variable
        More details

        Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%)

          Variable
          More details

          NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

            Fixed
            More details

            ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

              Variable
              More details

              loans.com.au – Solar Home Loan (Principal & Interest) (LVR < 90%)

                Variable
                More details

                Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                  Fixed
                  More details

                  Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                    Fixed
                    More details

                    Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

                      Fixed
                      More details

                      HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                        Fixed
                        More details

                        IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                          Fixed
                          More details

                          ING – Fixed Rate Home Loan 5 Years (LVR < 80%)

                            Fixed
                            More details

                            Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years

                              Fixed
                              More details

                              Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan (Principal and Interest) 1 Year

                                Important Information and Comparison Rate Warning

                                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of April 14, 2024. View disclaimer.