Unlock the Secrets to Refinancing Application Fees

What You'll Actually Pay to Refinance

Most lenders charge an application fee somewhere between $200 and $600 when you refinance your home loan. Some waive it entirely if you're bringing across a loan above a certain size. The fee covers the cost of processing your application, ordering a valuation, and running credit checks. You'll pay it upfront or have it added to your loan amount.

Consider a heavy diesel mechanic on a 2/1 roster who refinanced a $450,000 loan to access a lower variable rate. The new lender charged a $395 application fee but waived the valuation cost because the loan was above their $400,000 threshold. He paid the fee at settlement, which meant it came out of the loan proceeds rather than his offset account. The rate drop saved him around $240 a month, so the application fee was covered in under two months.

Some lenders market themselves as having no application fee but load the cost into a higher rate or annual package fee. Check what you're actually paying across the life of the loan, not just at the start.

Valuation Fees: Who Pays and When

The valuation fee usually sits between $200 and $400 depending on your property type and location. The new lender orders it to confirm your property is worth what you say it is. If you're refinancing to access equity, the valuation matters even more because it determines how much you can borrow.

In our experience, lenders will sometimes waive the valuation fee if your loan amount is high enough or if they're running a promotion. If you're switching to a lender that uses automated valuations for straightforward properties, you might avoid the cost altogether. Regional properties or anything on a larger block usually need a physical inspection, which costs more.

Discharge Fees from Your Current Lender

Your current lender will charge a discharge fee to release the mortgage, typically between $150 and $400. This isn't negotiable. It covers the administrative work of removing their interest from the title and notifying the land titles office. You'll also pay for the new lender to register their mortgage, which is usually another $150 to $200 in government fees.

If you're coming off a fixed rate period and your term has ended, you won't face break costs. But if you're exiting a fixed rate early, the break cost can run into thousands depending on how much rates have moved since you locked in. That's a separate calculation and not part of the standard application fees.

Settlement and Legal Costs

You'll need a solicitor or conveyancer to handle settlement, which usually costs between $800 and $1,500 depending on your state and how complex the refinance is. If you're refinancing and also adding a partner to the title or restructuring ownership, the legal costs go up.

Some brokers will connect you with settlement agents who understand FIFO income structures, which saves time when verifying employment and roster details. The agent will coordinate with both lenders, arrange for funds to move on settlement day, and make sure the old loan is fully discharged before the new one is registered.

When Lenders Rebate Your Costs

Some lenders offer cash rebates to cover your refinancing costs if you're bringing across a loan above a certain size. Rebates range from $2,000 to $4,000 and are paid after settlement, usually within 60 to 90 days. The rebate can cover your application fee, valuation, legal costs, and discharge fees in one hit.

The catch is that you'll usually need to stay with the new lender for at least two years or they'll claw the rebate back. If you're planning to refinance again or sell within that window, the rebate might not be worth chasing. Read the terms before you commit.

Ongoing Fees That Matter More

Application fees are a one-off cost. Annual package fees, monthly account fees, and offset account fees compound over the life of your loan. A lender charging $395 upfront but no ongoing fees will cost you less over five years than one with no application fee but a $395 annual package fee.

When you're comparing refinance offers, add up what you'll pay over the first three years, not just at settlement. Some lenders bundle features like offset accounts and redraw at no extra cost. Others charge $10 to $15 a month for each feature, which adds up to $1,800 over three years on top of the interest rate.

If you're on a 2/1 or 8/6 roster and managing cashflow across shutdown periods, an offset account with no monthly fee is worth more than a slightly lower rate with a $15 monthly charge. A loan health check will show you where your current loan sits and whether refinancing makes sense once you factor in all the fees.

Application Fees You Can Negotiate or Avoid

If you're refinancing a loan above $500,000, ask the lender or broker to waive the application fee. Most lenders have discretion to reduce or remove it, especially if you're switching multiple loans or bringing across an investment property at the same time. Brokers who work regularly with FIFO clients know which lenders are flexible on fees and which ones aren't.

You won't get far negotiating discharge fees or government charges because they're set costs. But application fees, valuation fees, and package fees are all on the table if you ask. The worst outcome is they say no and you pay what was quoted.

Call one of our team or book an appointment at a time that works for you. We'll walk through what your refinance will actually cost, which fees can be waived, and whether the rate drop justifies the switch.

Frequently Asked Questions