What are the costs of Refinancing?

It is often thought that refinancing is difficult and expensive. It doesn’t have to be.

Working with the team at Smart Mortgage & Lending, we simplify the process by guiding you through the transaction and explain any fees or charges before you sign for a loan. Some of the fees are outlined below:

Lenders are no longer allowed to charge exit fees

Lenders are NOT allowed to charge exit fees on loans taken out after 30 June 2011. If you did get your loan before 1 July 2011 your lender will be able to tell you if exit fees still apply on your loan. However, if you are on a fixed rate loan, be aware you may need to pay a break fee.

Establishment Fees

An Establishment fee may also be known as ‘application’, ‘up-front’, ‘start-up’ or ‘set-up’ fee. This fee is a one-off payment when you start your loan.

Lenders Mortgage Insurance (LMI)

Lenders mortgage insurance is an insurance that Lenders take out to protect themselves from borrowers not being able to repay their loan. It only applies if there is less than 20% equity in a home. If you paid LMI on your existing loan, before refinancing you will need to ensure that there is more than 20% equity in your property to avoid paying LMI again.

Ongoing fees

These are sometimes also known as administration fees. They may be a monthly charge or may be a fee that applies to a specific service. Not all Lenders charge ongoing fees.

Choosing the right loan for you

We will work with you to find out your requirements for a loan and will then present you with a comparison of at least three Lenders that meet your needs and allows you to easily compare loan features, fees, interest rates, comparison rates and other important information. We will also explain to you the advantages and disadvantages of refinancing so you are able to make an educated decision on what is right for you.

This is general information only and is subject to change at any time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.

Refinancing doesn't have to be a headache.

Refinancing or negotiating a better deal with your existing lender? The team at Smart Mortgage & Lending are here to drop your stress and make refinancing easy.

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More FAQs.

What is an offset account?

31 May '23

When considering a mortgage, it's advisable to research different lenders and their product offerings to determine if they provide offset accounts as an option.

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What are the costs of Refinancing?

31 May '23

Several costs come with refinancing a home loan, although some of these costs are added to your new mortgage. You can get a rough estimate of the cost to refinance your mortgage by using a refinance calculator, or engaging a mortgage broker.

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Settlement Day

31 May '23

On settlement day, it's important to consider tasks such as reviewing the final settlement statement, ensuring funds are available for the down payment and closing costs, and conducting a final inspection of the property before completing the purchase.

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