2020: Home Loan Refinance Costs – 7 Fees You Might Not Know About (AUSTRALIA)


Sarah: How much does it cost to refinance
your home loan? Watch this video to find out if there are
any hidden fees or any costs that might be associated with refinancing your loan. Sarah: At Lendi, we’ve helped thousands of
Australians refinance their home loan and get into a better financial situation. We’re about to go through seven fees that
might be applicable to refinancing your home loan. Sarah: Number one, the discharge cost. This is a fee that your lender will apply
to discharge your home loan. And generally it’s anywhere from $100 to $400. Sarah: Number two, the lender legal costs. Some lenders will charge you back the fees
that it costs to settle the loan, and generally that’s anywhere from $100 to $400. Sarah: Number three, government costs. There will always be a government cost when
transferring the title from one lender to another, and generally that sits anywhere
from $200 to $300. Sarah: Number four, application or establishment
costs. Some lenders can actually charge you to become
their customer. These costs generally differ between $0
and up to $1000 and they change from lender to lender. Sarah: Number five, the property valuation
costs. Now not every lender will charge this. However, there are some that do and these
vary between lender to lender and are roughly around $200 to $400. Sarah: Number six, break costs. If you’re in a fixed rate and you want to
refinance your loan, it’s likely that you’re going to have to pay a break cost. Now what does that mean and how do you calculate
it? It all depends how much time is remaining
on that fixed term and what the conditions were when you entered that fixed interest
rate. In addition to break costs, lender’s mortgage
insurance could be applied if you’re refinancing your loan above 80%. Sarah: Number seven, any additional costs. What that means is if you are applying for
a product that has an offset account, you might be charged your annual fee or any other
additional account keeping fees that are applicable to your loan. Sarah: So that’s it guys. The seven costs of refinancing your home loan. It might seem like a lot to you, but keep
in mind that generally the savings outweigh the costs involved in a refinance. Sarah: Last thing. If you want any more information on how to
refinance your home loan, you can check out this video here. Or if you’re wanting information on a better
rate, you can watch our video here. If you’re interested in getting great home
loan tips in Australia, please subscribe to our channel. And don’t forget to hit the bell if you want
to get notifications of our new videos.

3 Comments

  • Thanks for watching! Were there any home loan refinancing costs you didn’t know about? Please let us know in the comments below 😊

  • nice video dude

  • nice video bro

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