What are the costs?

Refinancing in most cases will bring financial benefits but you should be aware of potential costs so that you come out as a winner at the end of it. Based on your circumstances our expert will be able to tell you exactly which costs will incur when you go for a refinancing. Some of these costs are outlined below:

Exit fee

This is a one-time fee charged by your existing lender for paying the loan in full before the stipulated term. In the current market this fee can cost you up to $700. Speak with us to know whether this fee is applicable for your loan and the exact amount.

Stamp Duty

You need to pay Stamp Duty if you are increasing the size of your loan when you are moving to a different lender. This fee is payable to the state government and the fee amount depends on the size of the loan. You might also have to pay another fee called Mortgage Registration fee which is stipulated by Land Titles Office. Talk with us today to know which fees are applicable in your case.

Lenders Mortgage Insurance

LMI is an insurance which protects the lender when the loan amount exceeds 80% of the price of the property. Usually lenders impose LMI even if you paid it to take out your previous loan. In most cases it is possible to add the LMI to the loan so that you do not have to pay the upfront fee. Speak with us to know exactly how much you would be able to safely borrow including LMI from any particular lender.

Fees Charged by New Lender

During a refinance your new lender might charge you for the following:

Loan application fee: This fee is typically charged to process new loan applications.

Property valuation fee: Banks and other lenders will charge this fee to engage professional property valuers to provide them accurate price of the property. Subsequently they will do all their calculation based on this valuation.

Settlement fee: Lenders charge this fee to pay out your current home loan.

Please note that not all the lenders charge these fees. Also some of the fees are negotiable based on the particular loan situation. Speak with us today to learn which fees are applicable for your refinance and which lender is your best option.