How much does it cost to refinance?

With so much change on interest rates recently and approximately half of all fixed-rate loans expiring this year, refinancing is on many people’s minds.

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It’s no wonder. Some of those facing their fixed rate expiry are bracing for a 63% increase in their monthly mortgage repayments.
If you’re in this category, you may be speculating about how much it costs to refinance. Here we go over a few of the typical costs for you.

Costs to think about when refinancing

1. Mortgage application fee

If you’re changing lenders, you will likely have to pay a mortgage application or establishment fee. This covers the cost to your new lender of processing your application.
This upfront cost usually ranges from $200 to $1000, depending on the lender and the type of loan. It could also include a valuation fee.

2. Loan discharge fee

Saying goodbye to your existing lender will likely result in a discharge fee for the administrative costs associated with ending your mortgage. Often loan discharge fees are around $200-$400. However, they can go up to $1000.

3. Property valuation fee

Your new lender may need a valuation to be done when reviewing your refinancing application. The cost mainly depends on the lender and the location of the property – expect to pay more for rural properties. Valuation fees may vary from $200 to $600 in cities, and $600 to $1000 in rural areas. Some lenders offer free property valuations.

4. Break fees

If you are on a fixed rate loan, you most likely will have to pay break fees to get out of it early. Break costs can be costly and difficult to calculate. The simplest way to know your break costs is to ask your current lender for a rundown.

5. Settlement fee

Remember paying a settlement cost when you initially took out your loan? You’ll be up for that again if you decide to refinance. Settlement fees are paid to the new lender to settle the loan and usually range from $100 to $400.

6. Mortgage registration fees

The land registry in your state or territory will charge a mortgage registration fee to register your mortgage on the title record for the property. The cost could range from $120 to $210.

7. Exit fees

The Federal Government got rid of exit fees from 1 July, 2011 – but this is only for contracts signed after this date. If you signed previously, you may pay exit fees for terminating your loan early. Check with your lender if you’re not sure.

How much refinancing can save you

While all of the costs outlined above may seem vast, it’s important to think about the long-term advantages of refinancing. The amount of money you could save by refinancing depends on the size of your mortgage, how many years you have left on the loan, how much lower the new interest rate is and whether it has interest-saving features.

Like to discuss your options?

As your 1st Street Mortgage Broker, we can help you decide whether refinancing is the right move for you in the current economic climate. We can help you weigh up the costs versus the benefits of refinancing and clarify whether a different loan could better suit your financial situation and goals. Get in touch with us today.

Our service is completely


Yes, that’s right. You pay zero, zip, nada.

1st Street’s premium service comes at no cost to you! 1st Street is paid by the lender when your loan settles, however, this will not affect your interest rate or loan fees! It is often more cost-effective for a mortgage broker to process a loan rather than the lenders processing it themselves in-house. In fact, we often find that we can save you money by negotiating on your behalf.

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A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz