Everything You Need to Know About Refinancing Fees

Most lenders don't charge application fees when you refinance your home loan.

That's different from when you first bought your property. Back then, you probably paid somewhere between $300 and $600 just to submit your application. When you refinance your mortgage, many lenders waive that fee entirely, though some still charge it depending on the loan product and how you apply.

What catches people out isn't usually the application fee itself. It's the other upfront costs that come with moving your loan, like valuation fees, discharge fees from your current lender, and sometimes settlement fees. For someone refinancing a Southport apartment or a house in the Ridgway Avenue precinct, those costs can add up to between $800 and $1,500 even when the application fee is waived.

Which Lenders Still Charge Application Fees for Refinancing

Application fees depend on the lender and the loan type. Major banks often waive the fee for straightforward refinancing, particularly if you're moving to a variable rate product or coming off a fixed rate period. Some charge it for specialty products like construction loans, commercial refinancing, or low-deposit refinances where lenders mortgage insurance applies.

Consider a Southport homeowner refinancing to access equity for an investment property in Labrador. If they're applying for a standard owner-occupied variable rate loan with a major lender, the application fee is typically waived. If they're structuring a split loan with both fixed and variable components, or if they're self-employed and need more complex income assessment, some lenders apply a fee of around $400 to $600. The fee usually shows up in the initial disclosure documents, so you'll know before committing.

Valuation Fees and When You'll Pay Them

The valuation fee is the most common upfront cost when refinancing. Lenders need to confirm your property's current value before approving the loan, and most charge between $200 and $400 depending on property type and location.

Some lenders waive this fee as part of a refinancing package, particularly if you're borrowing under 80% of the property's value. Others offer to capitalise the fee into the loan rather than requiring payment upfront. That's common for Southport properties where values have increased since purchase, as the lender has more security and less risk.

In our experience, the valuation fee is waived more often for apartments in the Southport CBD, where recent sales data is plentiful and automated valuations are reliable. For properties in less densely transacted areas or unique property types, lenders typically send a physical valuer and charge accordingly.

Discharge Fees from Your Current Lender

Your current lender will charge a discharge fee when you leave. This covers the administrative cost of releasing the mortgage and preparing the paperwork for settlement. The fee usually sits between $150 and $400.

There's also a government fee for discharging the mortgage from the title, which in Queensland is around $200. These two fees are separate, and both are unavoidable if you're moving your loan to a new lender. Some borrowers in Southport assume their new lender covers these costs, but that's rarely the case unless it's negotiated as part of a specific refinancing offer.

Settlement and Legal Costs

Settlement fees cover the cost of registering the new mortgage on your property title. These typically range from $300 to $800 depending on whether you use your lender's panel solicitor or arrange your own conveyancer.

Some lenders include settlement in their package and don't charge separately. Others list it as a line item in the final cost breakdown. If you're refinancing to consolidate debt or access equity, the settlement process is slightly more involved, and costs can sit at the higher end of that range.

As an example, someone refinancing a Southport property to release equity for renovations might pay $600 in settlement costs if they're drawing down additional funds at settlement. If they're simply switching lenders without changing the loan amount, that cost might drop to $400 or be waived entirely depending on the lender's current offers.

When Lenders Offer to Cover Your Refinancing Costs

Many lenders run cashback offers or fee rebates to attract refinancing customers. These offers typically cover between $2,000 and $4,000 of your upfront costs, though conditions apply.

The cashback is usually paid a few months after settlement, not upfront. You'll still need to pay the discharge fee, valuation fee, and settlement costs at the time, then receive the rebate later. Some offers require you to stay with the lender for a minimum period, often two years, or you'll need to repay the cashback if you leave early.

We regularly see Southport borrowers attracted to these offers without checking whether the ongoing interest rate is competitive. A $3,000 cashback looks appealing, but if the rate is 0.20% higher than another lender, you'll pay more in interest within the first two years than the cashback is worth. Run the numbers on the total cost over the period you plan to stay with the lender, not just the upfront rebate.

Application Fees on Fixed Rate Refinancing After Your Fixed Term Ends

If your fixed rate period has ended and you're now on your lender's variable revert rate, refinancing to a lower rate usually doesn't involve an application fee. Most lenders treat this as a standard refinance and waive the fee to attract your business.

The exception is if you're refinancing back into another fixed rate product with a different lender. Some lenders charge an application fee for fixed rate loans, particularly if you're locking in for three years or more. That fee is usually between $300 and $600, though it's often negotiable or waived if you ask.

Southport has a high proportion of apartment owners who fixed their rates during the low-rate period and are now coming off those terms. Many are refinancing to variable products with offset accounts, which weren't available on their original fixed loans. Those switches typically don't attract application fees, though the valuation and discharge costs still apply.

How a Loan Health Check Identifies Whether Refinancing Costs Are Worth Paying

A loan health check compares your current loan against what's available in the market, factoring in all the upfront costs of refinancing. If moving your loan will save you $150 a month in interest but costs $1,200 upfront, you'll break even in eight months. After that, the saving is real.

The calculation changes if you're accessing equity or consolidating other debts into the mortgage. In those scenarios, the upfront costs are often offset by the immediate cashflow improvement from clearing higher-interest debts like credit cards or personal loans. Consider a Southport borrower with $25,000 in personal loan debt at 9% interest. Refinancing to roll that debt into their mortgage at 6% might cost $1,200 upfront, but it saves them around $60 a month in interest immediately, plus simplifies repayments.

Refinancing isn't always about the rate. Sometimes it's about accessing features like an offset account or redraw facility that weren't part of your original loan. If your current lender doesn't offer those features, the upfront cost of refinancing can still be justified even if the rate is only marginally lower, because the offset account reduces the effective interest you pay over time.

If you're weighing up whether refinancing makes sense given the fees involved, call one of our team or book an appointment at a time that works for you. We'll run through your current loan, compare it against what's available, and show you the actual cost and saving over the period you plan to hold the loan.

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