14 Nov 2021

How Much Does it Cost to Switch Mortgage Providers?

When you switch your mortgage to another provider, you can save money on the interest rates and fees. The result is cheaper home loan repayments every month. You do need to also be aware of the typical costs that go along with it too.

Common costs include LMI, or lenders’ mortgage insurance. When you refinance the amount you owe on the property, if it is more than 80% of the total value, you can expect to pay the LMI, ranging upwards of thousands of dollars. It typically gets added to the loan.

Mortgage discharge fees are also standard. For example, if you choose to close your home account before the agreed-upon time, that can cost you several hundred dollars. If you break a fixed-term loan, you can expect a fee for not meeting the agreed-upon terms and range into the tens of thousands of dollars.

You may also face switching fees if you choose to refinance internally, but that’s typically only a few hundred dollars. Comparison websites are often helpful, but you’ll want to specifically look for fees related to fixed-rate loans, discharge fees, application fees, switching fees, and stamp duty.

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