What does it cost to refinance a mortgage?
Mortgages are not cheap. In 2022, the average mortgage loan in Australia was $598,186 and continues to change every month. This expensive loan is the average, and it makes sense why so many Australians are looking into refinancing their mortgages. There are a lot of benefits to refinancing a mortgage, including,
- gaining a lower interest rate
- shortening the time left on the loan
- lengthening the time left on the loan
Although there are practical benefits to refinancing a mortgage in Australia, it is also essential to weigh the costs and expenses of exiting a home loan and entering a new one. The hidden costs of refinancing starts with the exiting costs or discharge fees. The average is between $200 to $1,000, but the number depends on the lender company.
Not only should you consider the exiting costs and settlement fees, but also the costs that come with the newly refinanced loan. While you save money on interest each month, you also have to pay an application fee, mortgage registration fee, and property valuation fee. In the end, some Australians pay up to $2,000 before accepting the terms of their new home loans.
Average Refinancing Cost Conclusion
It is not possible to find one exact average for refinancing costs. Since every lender works differently, they have their own terms for ending a mortgage contract early. The best way to find the exact costs is by searching for a trustworthy lender with experience in refinancing home loans. Here at Mortgage House, we have plenty of experienced and highly qualified lenders ready for a consultation call!