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What Does It Cost to Refinance a Home Loan? (2026)
Refinancing has no single price. It's a stack of separate costs, some you can look up to the dollar, some you have to ask your lender for. Here's the whole stack, and the test that decides it.
Refinancing doesn't have one price. It's a stack of separate costs, some set by your state government, some by your lender, and a couple that only apply in certain situations. Add them up and the real question isn't the total; it's whether the saving from a lower rate clears that total, and how long that takes.
This guide breaks the stack into its parts and shows you the test that decides it. It doesn't tell you whether to switch, and it isn't personal advice. For how the switch itself works, see how refinancing works.
- There's no single price. Refinancing cost is a stack: government lodgement fees, lender fees, maybe LMI, maybe a fixed-rate break fee.
- The government part is modest and set by your state. In NSW, registering the new mortgage and discharging the old each cost $182.73 (2026); most states with published 2026 fees sit around $180 to $250 per lodgement.
- The test isn't the sticker, it's the break-even: total switching cost divided by the monthly saving is how many months until you're ahead (ASIC MoneySmart).
- The saving is quietly cancelled by LMI under 20% equity, a fixed-rate break fee, or resetting your loan back to 30 years.
How much does it cost to refinance a home loan?
There's no single figure, because refinancing cost is a stack of separate charges, not one price. It's made up of a government lodgement fee to move the mortgage on your title, plus your lender's own fees. Two more costs apply only in some cases: lenders mortgage insurance and a fixed-rate break fee. ASIC warns that these "additional costs can outweigh the benefit of a lower interest rate" (ASIC, 2021).
So the useful question isn't "what's the total". It's whether the saving from a lower rate clears that total, and how many months that takes. That's the break-even, and it's the test the rest of this guide builds toward. First, the parts.
What fees will you actually pay?
There are four kinds of cost, and which apply depends first on whether you move to a new lender. If you do, two apply in almost every case: the government charges a lodgement fee to register your new mortgage and discharge the old one, and your lender charges its own fees. Switching to a different product with your current lender can skip the government fee, because the mortgage isn't discharged and re-registered. Then, in some cases, you also pay lenders mortgage insurance or a fixed-rate break fee.
The four costs in a refinance: two apply when you switch lenders, two only sometimes; only the government lodgement fee has a single published figure.
Lender fees don't come with a single published figure, because each lender sets its own. ASIC MoneySmart names the types: a discharge or termination fee to close the old loan, an application fee on the new one, and sometimes a valuation fee. It publishes no dollar amount for them, because they aren't set by law (ASIC MoneySmart, 2026). Individual lenders may list their own amounts in a fee schedule or credit guide, but these vary by lender and product. So get your current lender's discharge fee and the new lender's establishment costs in writing. The government fees, by contrast, are published, so let's start there.
What the government charges to register and discharge the mortgage
When you switch lenders, the old mortgage is discharged from your title and the new one registered, and each step is a set fee charged by your state land registry. In New South Wales, registering the new mortgage and discharging the old each cost $182.73, so the government component is that fee twice (NSW Land Registry Services, 2026). It's a small, fixed cost, not a percentage of your loan.
What it is varies by state, so check your own registry for the exact figure. Across the states with published 2026 fees, it sits in a similar band:
| State | Register a mortgage | Discharge a mortgage |
|---|---|---|
| New South Wales | $182.73 | $182.73 |
| Queensland | $248.04 | $248.04 |
| Western Australia | $225.10 | $225.10 |
| Australian Capital Territory | $184.00 | $184.00 |
Most states with published 2026 fees land between about $180 and $250 per lodgement, and you pay both lines on a switch. If you're in Victoria, South Australia, Tasmania or the Northern Territory, your state land registry sets the fee too, but the amount and the labels differ. Check its current schedule for the figure that applies. It's the one refinancing cost you can look up to the dollar before you apply.
How do you work out if refinancing is worth it?
You compare the total switching cost against the monthly saving, and see how many months it takes to recover. That's the break-even, and it's how ASIC MoneySmart frames the decision. Add up the fees, then use its mortgage switching calculator, which "shows how long it will take to recover the cost of switching" (ASIC MoneySmart, 2026). A short recovery period is a strong sign and a long one a reason to look harder. But treat it as a first screen: a lower monthly figure can come from a longer term, and ongoing fees can eat the saving. Compare the two loans on the same balance and term before you decide.
MoneySmart's own worked example makes the shape clear. In its illustration, a couple pick a loan with a $600 application fee over one with a $300 fee, because the lower rate more than makes up for it. They save $84,040 over the life of a 25-year loan and recover the switching cost in five months (ASIC MoneySmart, 2026). Those are MoneySmart's illustrative figures, not a typical result, but the method is the point: your saving has to clear your costs, and the sooner it does, the stronger the case. Whether the timing is right for you is a separate question, and we cover whether it's actually the right time to switch on its own. Before you apply, it's worth knowing your borrowing position, so you can check where you stand rather than guess.
The costs that quietly cancel the saving
Three costs can wipe out a lower rate, and they're the ones an ad won't lead with. The first is lenders mortgage insurance (LMI), a one-off premium payable when you borrow more than 80% of the property's value, which "does not benefit the borrower, it only protects the lender" (ASIC MoneySmart). If you refinance while your equity is still under 20%, a fresh LMI premium can be triggered on the new loan. Any refund of what you already paid is usually partial at best, and depends on your lender and insurer. LMI attaches to a particular loan, so switching under 20% equity can mean paying it twice.
The second is a fixed-rate break fee. MoneySmart warns that if you break a fixed loan the fee "may be very high". It adds that "the more interest rates have come down since you took on the fixed rate loan, the higher the break fee will be" (ASIC MoneySmart). There's no published formula, so ask your lender for a written payout figure before you decide. The third is subtler: resetting the term. Rolling what's left of your loan back out to a fresh 30 years lowers the repayment but raises the total interest you pay. That's why MoneySmart says to keep the new loan a similar length to your current one (ASIC MoneySmart, 2026).
Is a cashback worth it?
Only if the deal still puts you ahead once the rate and fees are counted. ASIC's advice is to "do the maths to ensure a cashback offer still puts you ahead over the long term when considered against other aspects of the loan, like interest rates and fees" (ASIC, 2021). A cash sweetener is not the same as a cheaper loan.
The catch is usually in the fine print. Some cashback offers may require you to keep the loan open for a minimum period, or repay the cashback. That's the lender's own condition to check on the offer, not a rule you can assume. Judge the loan on its rate, fees and features over the years you'll hold it, and treat the cashback as a tie-breaker between similar loans, not the reason to switch.
The bottom line
The cost of refinancing is a stack, not a sticker: a government lodgement fee you can look up, lender fees you have to ask for, and, in some cases, LMI or a fixed-rate break fee. Add them up, then run the break-even, because a lower rate only helps once the saving clears the switching cost. With rates having risen through 2026 and the cash rate at 4.60% as at 30 September 2026 (RBA), that maths matters more, not less.
So get the real numbers before you apply: your state's lodgement fees, your current lender's discharge fee, the new lender's establishment costs, and any break fee in writing. Then a broker can help you compare the options and weigh whether the saving is worth the switch; the decision stays yours.
knest.ai's buyer-side property intelligence lets you ask anything, research a home, or estimate your borrowing power, with loan comparison, deposit and LVR, and repayment scenarios in the app. It's general information to help you ask better questions, not a refinance recommendation or a fee quote.
Try knest.aiFrequently asked questions
How much does it cost to refinance a home loan?
There's no single figure. It's a stack. There's a government lodgement fee to register the new mortgage and discharge the old, around $180 to $250 each in the states with published 2026 fees. On top sit your lender's own discharge and application fees, and sometimes LMI or a fixed-rate break fee. The test is the break-even, not the total.
What is a mortgage discharge fee?
Two different things share the name. Your state land registry charges a fee to formally discharge the old mortgage from your title (in NSW, $182.73 in 2026). Separately, your lender may charge its own discharge or termination fee to close the loan, and that amount is set by the lender, not published, so ask for it in writing.
Do you pay LMI again when you refinance?
You can, if your equity is still under 20%. Lenders mortgage insurance is a one-off premium payable when you borrow more than 80% of the property's value (ASIC MoneySmart), and it attaches to a specific loan. Refinancing under 20% equity can trigger a fresh premium on the new loan, and any refund from your old lender is usually partial at best.
Is a refinance cashback worth it?
Only if it still puts you ahead once the rate and fees are counted (ASIC, 2021). A cashback can sit on top of a higher rate, so the money you get today is repaid through the rate you carry for years. Some offers also require you to keep the loan open for a minimum period, so check the offer's terms.
How do I work out if refinancing is worth the cost?
Use the break-even: divide the total switching cost by your monthly saving to see how many months until you're ahead (ASIC MoneySmart, 2026). MoneySmart's mortgage switching calculator runs it for you. A recovery of a few months is a strong sign, but it's only a first screen: check the two loans on the same balance, term and ongoing fees too.
Sources
- ASIC MoneySmart, Switching home loans, retrieved 2026-09-23, https://moneysmart.gov.au/home-loans/switching-home-loans
- ASIC MoneySmart, Mortgage switching calculator, retrieved 2026-09-23, https://moneysmart.gov.au/home-loans/mortgage-switching-calculator
- ASIC MoneySmart, Lenders mortgage insurance (LMI) glossary, retrieved 2026-09-23, https://moneysmart.gov.au/glossary/lenders-mortgage-insurance-lmi
- ASIC MoneySmart, Break fee glossary, retrieved 2026-09-23, https://moneysmart.gov.au/glossary/break-fee
- ASIC, Switching home loans? ASIC tips for refinancing, 10 May 2021, retrieved 2026-09-23, https://www.asic.gov.au/about-asic/news-centre/news-items/switching-home-loans-asic-tips-for-refinancing/
- NSW Land Registry Services, Regulated customer fees from 1 July 2026, retrieved 2026-09-23, https://www.nswlrs.com.au/about-us/announcements/new-regulated-customer-fees-1-july-2026/
- Titles Queensland, Titles Registry Fees FY2026-27, effective 1 July 2026, retrieved 2026-09-23, https://www.titlesqld.com.au/wp-content/uploads/2026/05/Titles-Registry-Fees_FY-2026-to-2027.pdf
- Landgate (WA), Land transaction fees, retrieved 2026-09-23, https://www.landgate.wa.gov.au/land-and-property/land-transactions-hub/land-transaction-fees/
- Access Canberra (ACT), Land title lodgement and registration fees, retrieved 2026-09-23, https://www.accesscanberra.act.gov.au/building-and-property/land-title-lodgement-registration-and-search-forms-related-fees
- Reserve Bank of Australia, Cash Rate Target, retrieved 2026-10-07, https://www.rba.gov.au/statistics/cash-rate/
Eleanor Hayes, Editor, knest.ai
This article is general information for Australian home buyers and owners, not personal financial, credit, legal or tax advice, and not a recommendation to refinance. knest.ai is a buyer-focused property intelligence platform that provides decision support, not a broker or lender service, and does not replace a licensed mortgage broker or lender. Any broker introduction through the Home Loan Expert is buyer-initiated and never automatic; where knest.ai receives a benefit from such an introduction, that benefit is disclosed to you. Verify any figures for your own circumstances before you act.
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