If you’re looking to improve your financial position, refinancing can be a good move for you. But it is important to be aware that there are costs involved with ending one loan and moving onto another loan. Speak with your dedicated Loan Gallery Finance expert for information that is tailored to your unique situation.
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Fees lenders may charge:
There are several fees and charges that you should look out for and consider when looking to refinance. To help you gain an understanding of these costs, we have listed a few common terms and what that may mean for your loan.
Discharge fee — a fee to remove the current lenders mortgage from your title.
- Break cost — this may apply to a fixed rate loan.
- Application fee — a fee charged by some lenders to apply for a loan with them. It’s often charged at settlement of your loan but some lenders do waive the fee.
- Valuation fee — a cost lenders can charge to have your property valued by one of their authorised property valuers.
- Settlement fee — a fee for attending the settlement of your loan.
- Registration fee — This generally refers to registering the new mortgage on your title. It is a government fee and not a lender fee. The amount varies from state to state.
- Lender’s Mortgage Insurance (LMI) — a fee that may be charged if your new loan represents more than 80% of your property’s value. It’s an insurance policy that protects the lender and not you! Most lenders will add it to your loan amount, depending on how far over 80% of the value of your property you go.
Every lender is different
Most lenders won’t charge every fee listed above; this is just a guide. Your Loan Gallery Specialist will help you to understand the costs involved when ending your current loan and beginning a new loan.