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: Hi, guys. It’s Sarah here. 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. Keep in mind that these fees are generally
capitalized to your loan, and it’s not an upfront cost to you. Sarah: Now before we start, if you’re interested
in getting great home loan tips in Australia, please subscribe to our channel. Don’t forget to hit the bell if you want to
get notifications of our new videos. Sarah: #1 The discharge cost: This is a fee
that your lender will apply to discharge your home loan. Generally, it’s anywhere from $100 to $400. Sarah: #2 The lender legal costs: Some lenders
will charge you back the fees that it costs to settle the loan. Generally, that’s anywhere from $100 to $400. Sarah: #3 Government costs: There will always
be a government cost when transferring the title from one lender to another. Generally, that sits anywhere from $200 to
$300. Sarah: #4 Application or establishment costs:
Some lenders can actually charge you to become their customer. These costs generally differ between zero
and up to a thousand dollars and they change from lender to lender. Sarah: #5 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: #6 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
the break cost. Now, what does that mean and how 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: #7 Any additional costs: What that
means is if you’re applying for a product that has an offset account, you might be charged
an annual fee, or any other additional account keeping fees that are applicable to your loan. Sarah: 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: If you found this video helpful, please
give us a thumbs up, and if you have any questions, leave them in the comments box below. Sarah: Now, if you’re looking to refinance
and want to explore your options, please jump online to our home loan platform
at Lendi.com.au. You can also join our private Facebook group,
Home Loan Hacks Australia, where we give you useful tips and answer any questions that
you have about all things home loans. Sarah: Lastly, if you’re wanting more information
on how to refinance your home loan, you can check our video here, or if you’re wanting
to know about better interest rates, you can watch our video here.

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