Quick Answer: Refinancing means moving your mortgage to a new lender or restructuring it with your current one, usually to get a better rate, access equity, or change loan structure - expect $800-$1,500 in legal fees, possibly $700-$1,000 for a valuation, and potentially a break fee if you're leaving a fixed term early.
The Refinancing Process, Step by Step
Refinancing follows a similar shape to buying, minus the property search. You compare offers across lenders (or negotiate with your current one), apply for approval with the new lender, and once approved, your lawyer manages the discharge of your old mortgage and registration of the new one - all coordinated to happen on the same day so you're never without a loan in place.
What It Actually Costs
Expect $800-$1,500 in legal fees for a standard refinance, covering the discharge and re-registration of your mortgage. Some lenders require an updated property valuation, typically costing $700-$1,000. If you're still inside a fixed term, a break fee may apply, calculated based on the change in wholesale interest rates since you fixed and how much term remains.
- Legal/conveyancing fees: $800-$1,500
- Valuation (if required): $700-$1,000
- Break fee (if leaving a fixed term early): varies significantly by situation
- Bank discharge and new loan documentation fees: often smaller, lender-specific
$2,000-$4,000
Up to 1.5%
2-4 years
Common Questions, Answered
Quick Summary
- Refinancing costs $800-$1,500 in legal fees, plus a possible valuation fee.
- Cashback offers can offset costs, but check clawback terms first.
- Break fees apply if you leave a fixed term early - get a quote before committing.
- The whole process typically takes 2-4 weeks once you've decided to switch.