Refinancing & loan structure

What costs should you consider before refinancing?

Refinancing can involve more than comparing interest rates: fees, timing, loan features and the cost of changing security all matter.

Potential costs can include application or package fees, valuation costs, discharge fees and government registration charges. The exact amount depends on the current and new lender and the transaction.

What to understand first

A lower rate may not produce a better result if the saving is outweighed by fees or a longer loan term. Fixed loans can also have break costs.

What lenders may consider

Compare total cost over a useful timeframe and preserve features that matter, such as an offset account or repayment flexibility.

Practical next steps

Gather the relevant documents and compare the complete position, including repayments, fees, timing and the purpose of the finance. Lender policy varies, and information should be confirmed for the application being considered.

Compare the complete outcome

A refinance is useful only when the expected benefit remains after fees, timing and product changes are considered.

  • List discharge, registration, application, valuation and package costs that may apply.
  • Compare the balance and loan term, not just the repayment today.
  • Check whether fixed-rate break costs or lost features change the result.

This article is general information only and is not personal financial, legal, accounting or tax advice. Credit is subject to lender criteria, eligibility and approval.

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