Refinancing in Australia: costs, timelines, and how to avoid pricing traps

Most people refinance chasing a lower rate. The bigger risk is refinancing into a loan that looks cheap on day one, then drifts expensive later.

What refinancing typically costs

Refinancing usually includes a mix of lender fees and government registration costs. Discharge fees and other switching costs vary by lender and state, so it’s worth confirming the full figure before you decide.

Common cost categories to check:

• Discharge (exit) fee with your current lender

• Government registration and related title search fees

• Application fees (often waived, not always)

• Valuation fee (sometimes waived)

Typical timelines (what actually slows it down)

A refinance can be quick, but delays usually come from:

• documents and bank statements not matching

• property valuations coming in lower than expected

• lender backlogs and condition requests

If timing matters (fixed rate expiry, buying soon, releasing equity), plan early so you are not negotiating under pressure.

Pricing traps to avoid

1) The “new customer rate” cliff

Some loans look sharp upfront, then revert to a higher rate or weaker discount later.

2) Feature downgrade

A cheaper rate can cost you an offset account, flexible repayments, or the right split structure.

3) Borrowing power hit

A lower rate does not always mean easier servicing. Policy and buffers matter more than most people think.

If you want a clear recommendation on costs, timing, and whether refinancing stacks up, book a call and start with a Refinance Health Check.

Disclaimer: General information only. This article does not take into account your objectives, financial situation or needs. Before acting, consider whether it’s appropriate for you and seek advice. Credit and lending outcomes depend on lender policy, your circumstances and the property.