The fine print
Always look at the fine print. Image – Canva
  • Always review the costs that you may incur when looking at switching home loans
  • Review your plans with someone who is not emotionally attached to your outcome
  • A broker should be able to provide independent advice

As previously mentioned, it could be a good time to look at your existing home loan, and see if there are better options for you elsewhere.

One of the main reasons to refinance your home loan is to improve your financial position.

An important matter to consider is the cost(s) involved in ending one loan and moving to another. Only with an appreciation of this can you weigh up the benefits of switching home loans.

The best way to do this is to speak with your broker or bank, but here are the fees and costs that some lenders may charge:

  • Discharge Fee: A lender may charge you a termination fee.
  • Break Cost: If you have a fixed rate loan you could be charged a break cost fee.
  • Application Fee: This is often charged on settlement of the loan.
  • Valuation Fee: A lender can charge this fee to have your property independently valued.
  • Early Exit Fees: May be payable if you’ve had your loan for less than a specified period (e.g. 5 years).
  • Settlement Fee: A fee charged once the loan is settled.
  • Registration Fee: Charged when you switch your mortgage to a new lender. This amount varies from state to state.
  • Lender’s Mortgage Insurance (LMI): If your new loan is worth more than 80% of your home’s value, a lender will ask you to pay this to protect them from defaults.

Most lenders will only charge you some of these, not all. Look at the fine print, and consult an expert.

When talking through your situation, a broker can help you understand what it will cost to end your current loan, and begin the new one.

Most importantly, a broker is there to help make the process easier for you. If there’s something you don’t understand or need more of an explanation on, please contact them. It’s their job to assist, after all.


Before making any financial decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or investment advice. See our Terms of Use.

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