Refinancing a home loan in NSW usually costs a few hundred dollars to about $1,600, before any fixed-rate break cost or mortgage insurance. The main items are your current lender’s discharge fee, two government registration fees of $182.73 each in 2026-27, and whatever application, valuation or settlement fees the new lender charges. Many lenders waive some of those.

Refinance costs in NSW at a glance
Cost Who charges it Amount
Discharge fee Your current lender Set in your contract; check the lender’s fee schedule
Register the discharge NSW Land Registry Services $182.73
Register the new mortgage NSW Land Registry Services $182.73
Application or establishment fee New lender Often $0, sometimes several hundred dollars
Valuation New lender Usually free on a refinance
Settlement fee New lender Often $0 to a few hundred dollars
Break cost Current lender, fixed loans only Depends on rate moves since you fixed
Lenders mortgage insurance New lender, above 80% of value Thousands of dollars; not transferable

What does a typical refinance add up to?

Two illustrative cases, both refinancing a loan secured on one NSW home with no fixed rate and more than 20% equity:

Two worked totals
Item Lender waives its fees Lender charges fees
Discharge fee (assumed) $350 $350
Government registration, two dealings $365 $365
Application fee $0 $600
Settlement fee $0 $300
Total $715 $1,615

The government fees are fixed for the 2026-27 year. The discharge fee is an assumption for the example; yours is in your loan contract. A cashback offer can cover these costs, but compare the rate first, because a few hundred dollars back rarely beats a lower rate over the life of the loan.

How much does it cost to refinance a $300,000 loan?

About the same as a larger loan. Most refinance costs are flat fees, so a $300,000 loan carries roughly the same $715 to $1,615 in the examples above. What changes with the balance is the saving: a smaller loan saves fewer dollars for the same rate cut, so the costs take longer to recover. On a $300,000 balance with 25 years left, moving from 6.5% to 6.0% saves about $93 a month.

How long until refinancing pays for itself?

Divide the costs by the monthly saving. On a $600,000 balance with 25 years left, moving from 6.5% to 6.0% cuts the repayment by about $185 a month. At the higher example cost of $1,615, that pays back in about 9 months; at the lower cost, about 4 months. The refinance savings calculator works it out on your own numbers, and is refinancing worth it for 0.5% looks at the threshold in more detail. A real refinance review weighed the new rate, the fees and an offset account without adding years to the loan.

Which costs are easy to miss?

  • A break cost on a fixed loan. Exit fees on variable loans were banned from 1 July 2011, but break costs on fixed loans remain. See fixed rate break costs.
  • Mortgage insurance again. If you owe more than 80% of the value, the new lender may charge it even though you paid it once already, because the policy does not transfer.
  • A longer term. Resetting to 30 years lowers the repayment but adds interest. Keeping your remaining term, or the same repayment, protects the saving.
  • Package fees. An annual fee on the new loan eats into a small rate cut.

How soon can you refinance?

No rule stops you refinancing a loan you took out recently. The practical limits are a break cost if the loan is fixed, mortgage insurance if your equity is under 20%, and whether a new lender will approve you on today’s income and valuation. If you refinanced recently, ask what changed; lenders look at your repayment history and may question several moves in a short time. How long refinancing takes sets out each step of the switch.

Questions people ask

Is there a fee to discharge a mortgage?

Yes. Your current lender usually charges a discharge or settlement fee, often a few hundred dollars and set out in your loan contract, and NSW Land Registry Services charges $182.73 to register the discharge in 2026-27. The new lender pays out the old loan at settlement.

Are refinance costs tax deductible?

On an investment loan, many borrowing costs can be claimed, sometimes spread over several years. On your own home they are not deductible. Your tax agent confirms the treatment.

Can I add the costs to the new loan?

Often, yes, if the new loan stays within the lender’s limits. Adding them means paying interest on them, so paying small costs from savings is usually cheaper.

Does the new lender pay my discharge fee?

Some offers include a contribution or a cashback that covers it. It is not automatic, so check the offer’s terms.

Charles Touma lists every cost before you switch, including the ones that are easy to miss, and checks whether your current lender will match the rate first. A free 30-minute call covers whether refinancing pays for itself in your case. General information only, not credit advice; lender policies and fees change, and your own figures decide what suits you.

Sources: NSW Land Registry Services, 2026-27 fees; Moneysmart, switching home loans; ASIC RG 220, early termination fees, checked 20 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.