Exit Costs When Refinancing: What You Need to Know
Thinking About Refinancing? Don’t Forget the Exit Costs
Refinancing can save you thousands over the life of your loan—but it’s not free. Before you switch lenders, it’s important to understand the exit costs involved so you can make an informed decision.
What Are Exit Costs?
Exit costs are fees you pay when closing your current home loan and moving to a new one. These can vary depending on your lender, loan type, and whether you’re breaking a fixed-rate term.
Common Exit Costs to Watch Out For
1. Discharge Fees
This is the cost of closing your existing mortgage account. Most lenders charge between $150 and $400.
2. Break Fees (Fixed Loans)
If you’re on a fixed-rate loan and refinance before the term ends, you may face break fees. These can range from hundreds to thousands of dollars depending on your remaining term and interest rate movements.
3. Settlement and Legal Fees
Covering the paperwork and legal process of transferring your mortgage can add extra costs.
4. New Loan Setup Fees
Your new lender may charge application or establishment fees—typically $200 to $600.
Other Costs to Consider
- Valuation fees for your property
- Government registration fees
- LMI (Lenders Mortgage Insurance) if your new loan exceeds 80% LVR
How to Minimise Exit Costs
- Check your current loan terms before refinancing
- Ask your lender for a payout figure including all fees
- Compare total costs against potential savings
- Work with a mortgage broker to find lenders offering cashback deals
Ready to Refinance Without Surprises?
At CBM Mortgages, we’ll calculate your exit costs upfront and help you find a refinancing option that makes financial sense.
👉 https://cbmmortgages.com/refinancing/ Explore our Refinancing page
👉 Read more on our https://cbmmortgages.com/blog/ mortgage insights blog
👉 Go to our extensive calculators page here
Don’t let hidden fees stop you from saving big!
📞 Call us today or book a free consultation online. We’ll show you exactly what refinancing will cost—and how much you can save.
External Resources
- https://moneysmart.gov.au/home-loans/ refinancing ASIC MoneySmart: Refinancing
- https://www.rba.gov.au Reserve Bank of Australia: Interest Rates
Disclaimer
This article provides general information only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker before making any financial decisions.
Written by Craig McDonald 08.10.2025
