Refinancing9 min read
Refinance switching costs Australia — full checklist 2026
Discharge fee, application fee, valuation, government charges — and what not to count. Use this checklist in the refinance playground cost slider so break-even reflects real switching maths.
Azure Home Loans — general information only, not personal credit advice.
Canonical tool: Enter totals in the refinance playground cost slider — this checklist feeds the break-even maths on the hub.
Break-even only works if switching costs are complete. Under-count fees and refinance looks cheaper than it is; over-count and you never switch when you should.
Use this checklist before you trust any refinance calculator — then plug the total into the Refinance playground.
Core switching costs (include in break-even)
| Item | What it is | Notes |
|---|---|---|
| Discharge fee | Current lender fee to close the loan | Often $150–$600; check your fee schedule |
| Application / establishment | New lender setup fee | Sometimes waived in promotions — confirm in writing |
| Valuation | Property assessment for new lender | $0–$400+ depending on lender and LVR |
| Settlement / legal | Conveyancer or lender settlement charges | Varies; some lenders cover |
| Government registration | State mortgage registration or discharge | NSW, VIC, QLD, etc. — check revenue office schedules |
Playground default: $3,500 on the loyalty-tax preset — a mid-range illustration. Adjust to your quotes.
Costs to confirm separately (not in default playground)
| Item | Why separate |
|---|---|
| Fixed-rate break cost | Can be $0 to tens of thousands — lender-specific formula |
| LMI / risk fee | If LVR above 80% or new policy required |
| Debt consolidation discharge | Personal loan payout fees |
| Cashback clawback | If you leave before clawback period ends |
See should I fix my home loan for fixed exit context.
Costs that are not switching costs
- Ongoing package fees on the new loan (affect comparison rate, not one-off break-even)
- Stamp duty on mortgage (usually not re-paid on simple refinance — confirm in your state)
- Future rate rises (sensitivity analysis, not a switching fee)
Fixed-rate break costs (separate module)
If you are still on a fixed loan, use the “I'm on a fixed rate” accordion in the refinance playground for an illustrative break-cost estimate — then confirm in writing with your lender. The hub adds this to switching burden when judging break-even.
Cashback and clawback
Enter cashback in the playground to reduce upfront costs. If you might refinance again within 24–36 months, model the clawback warning — adjusted break-even grosses cashback back up. See the hub FAQ on cashback traps.
How to use this in the playground
- Add line items from the table above
- Enter the total in Switching costs ($)
- Use the slider — it snaps near whole-month break-even when monthly saving is positive
- Read break-even months beside term-for-term monthly saving
Example preset: $580k loyalty tax uses $3,500 costs → ~19 months break-even at ~$193/month saving in modelled maths.
Debt consolidation preset uses $5,500 — higher file complexity and discharge of unsecured debt.
Retention vs external — cost angle
Retention may avoid discharge and new application — but only wins if the rate is term-for-term competitive. Compare:
- Retention rate on remaining term
- External rate minus full switching costs
Home loan loyalty tax · Break-even calculator guide
Official references
- Moneysmart — refinancing your home loan
- Your current lender fee schedule and discharge authority form
General information only — not personal credit advice.
Run the numbers: Refinance playground · Term reset trap · Send an enquiry
Email your personal refinance comparison plan
Model break-even, term-for-term savings vs a 30-year reset, and the loyalty-tax band in the refinance playground, then download the PDF.
Continue on this topic
Selected internal links curated for crawlers + readers tracing the same journey — calculators, glossary, service FAQs, hubs.
- Refinance playground
Model break-even, term reset trap, loyalty tax, and switching costs — email a PDF plan.
- Refinance hub
Playground, calculators, official tools, and blog rollup in one place.
- Refinance calculator
Break-even maths, LVR, and free PDF report on a dedicated landing.
- Refinance service FAQ
Long-form FAQs with policy checkpoints written for Australian borrowers.
Next step
When you want the same themes applied to your file — lender policy, documentation, and structure — browse mortgage broker services or send an enquiry. Bishnu Adhikari will reply with a sensible next move.