What it really costs to refinance your home loan
For a standard variable-rate switch on a $500K to $800K Australian loan in 2026, total upfront cost sits between $600 and $2,000. Exiting a fixed rate early changes the picture: break costs alone can add $3,000 to $15,000+ on top. Here is every fee with real dollar figures, the traps, and the break-even framework.
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Every refinance cost, line by line
The cost to refinance a home loan in Australia breaks into six categories. Some are fixed, some are negotiable, and two are large enough to deserve their own section below. Here is every cost with the real dollar range, so nothing catches you off guard.
For a standard variable-rate refinance, the total of items 1 through 4 below lands between $600 and $2,000. Items 5 and 6 apply only in specific situations, but when they do, they dominate the total.
Standard refinance: $600–$2,000. Add break costs and LMI only if your situation triggers them.
01
Discharge fee from your current lender
The admin cost your existing lender charges to release the mortgage from the title. Not an exit fee — exit fees were banned for loans entered after 1 July 2011 under Australian consumer credit law (confirmed by Moneysmart). Discharge fees remain legal and are a separate charge. Every lender sets its own.
02
Valuation fee on the new loan
The new lender needs to confirm your property's value. Many lenders waive this fee for refinance applications, especially when submitted through a broker channel. Worth asking before you assume it applies.
03
Settlement and legal fees
A conveyancer or solicitor handles the mortgage transfer between lenders. Some lenders bundle this into their loan package at no extra charge. Others pass it through as a separate line item.
04
Government mortgage registration and transfer fees
Set by state revenue offices and indexed annually. NSW charges approximately $154 for mortgage registration. VIC is approximately $119. QLD is approximately $224. These are non-negotiable government charges. You pay them regardless of which lender you choose.
05
LMI if your LVR exceeds 80%
Lenders Mortgage Insurance is the single largest hidden refinance cost. It applies if the new lender's valuation puts your loan-to-value ratio above 80%. LMI from your original loan does not transfer. This is significant enough that it gets its own section below.
06
Break costs on a fixed-rate exit
If you are leaving a fixed-rate loan before the fixed period ends, the lender charges a break cost to recover the interest differential. The amount depends on your rate, the current wholesale rate, and time remaining. For many 2026 refinancers, this is the deciding factor.
Want your specific lender's discharge and break cost figures?
Book a free 15-minute call. Stryve knows what each major lender charges and what their valuation team typically returns — so you see the numbers before you commit.
Book your cost reviewThe two big ones
Two costs that can dominate the total
LMI and fixed-rate break costs are the line items most likely to derail a refinance that otherwise made sense on rate alone. Both are situation-specific, both can be material, and both can be checked before you formally apply.
LMI can be triggered again
If LVR > 80%LMI is non-transferable — the policy you paid for on your original loan stays with your old lender. If your LVR exceeds 80% at the new lender's valuation, a fresh premium is triggered. At 85% LVR on a $600K loan, the premium is material. At 90% to 95%, it can reach $10,000 to $25,000+. Property values in some markets have softened since their peaks, so if you bought at the top, your equity position today may not be what you think. A broker can run an indicative valuation before you formally apply so you see your LVR position before committing to switching costs.
Fixed-rate break costs in 2026
If exiting a fixed term earlyBreak costs apply when you exit a fixed-rate loan before the fixed period ends. Rough formula: loan balance × rate differential × years remaining. On a $500K loan with a 1.5% differential and 2 years left, the break cost lands around $15,000. Many borrowers locked in 2.0% to 2.5% fixed rates during 2021 and 2022 on 4- and 5-year terms — those are expiring through 2025 and 2026. If your fixed term expires within 6 to 12 months, it often makes more sense to wait. The break cost you pay now will often exceed the rate saving you gain over those same months. Ask your lender for a written break cost estimate before deciding.
If LMI is triggered, it often wipes out several years of rate savings. In that scenario, refinancing is not worth it — wait until you have built more equity. The honest answer: you will not know which applies to you until a valuation and break-cost estimate are in.
The break-even framework
Does refinancing actually save you money?
Example 1 · It works
Break-even in 8 months
$600K loan at 6.4% → new lender at 5.9%. Repayment drops ~$185/mo. Total switching cost $1,400. Break-even 8 months. Over 3 years: ~$5,260 in your pocket after costs.
Example 2 · It does not
Break-even in 36 months
$400K loan at 6.2% → best available 6.0%. Saving ~$50/mo. Cost $1,800. If you plan to sell or refinance again within 3 years, this switch costs you money. Stay where you are.
Wildcard
Cashback can flip break-even
If a lender offers $2,000 cashback, that fully offsets standard switching costs and moves break-even to month zero. Cashback windows shift monthly — confirm the current offer before assuming it applies.
What a broker actually costs you — and why that matters
Stryve does not charge you a broker fee for a standard refinance. Zero. The broker is paid by the lender you choose, with full commission disclosure before you commit. Here is the practical impact on your refinance cost stack.
$0 broker fee to you
Stryve does not charge a fee for a standard refinance. The broker is paid by the lender — upfront commission (0.5% to 0.7% of the loan amount) plus an ongoing trail. You do not pay either. They do not increase your interest rate.
Commission disclosure in writing
The potential conflict — a broker steering you toward a higher-paying lender — is addressed by disclosure. Stryve sends the exact commission amount in writing before your application is lodged. You see the number. You decide whether to proceed.
40+ lender comparison before you apply
One direct application = one bank's policies. Going through 40+ lenders means matching your situation (rate, features, LVR, income structure) to the lender most likely to approve. The application that lands is the one most likely to settle.
Self-employed: same cost, different lender
The fees to refinance are identical for self-employed borrowers. The difference is lender selection. Some require two years of tax returns; others accept one year plus BAS. Choosing the wrong lender means a declined application and wasted time. Lender access matters most when your income is non-standard.
Next steps after
the cost breakdown
What our customers
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Refinance costs: common questions
Find out if refinancing saves you money
You have the cost framework. Plug in your loan size, current rate, and target rate to see your personal break-even — or talk to a broker who will run the numbers with you.