The cost of refinancing your home loan


Whether you’re searching for a better interest rate or looking to free up some cash, there are a lot of reasons you might decide to refinance. Refinancing can save you money, but you should weigh up the costs of refinancing from your current lender, like discharge fees and any break costs before you make any changes to your existing loan.

To see how your loan stacks up against ubank’s, you can calculate your potential savings with our refinancing calculator.

How much does refinancing cost?

Here are some of the main costs when you refinance with ubank:

Cost ubank Neat variable ubank Flex
Valuation fee Free if under $360

We’ll pay for the first $360 if it’s over $360

Free if under $360

We’ll pay for the first $360 if it’s over $360

Loan advance fee $250 $250
Annual fee $0 $250
Mortgage discharge fee $300 per property $300 per property

Make sure the benefits outweigh the costs

Like any big financial decision, it’s a matter of weighing up the benefits against the costs and taking your own circumstances into account.

Some of the things you’ll need to consider when comparing loans include:

  • Interest rate and repayments
  • Monthly fees
  • Loan type (fixed or variable)
  • Repayment type (principal and interest or interest only)
  • Any other loan features that are important to you
  • Any fees your current lender will charge you for leaving them.

While each home loan will have its own terms and conditions, there are some common terms and refinance costs to get familiar with when shopping around.

Our top tip is to look at the comparison rates, as this is an indication of the true cost of the loan. The comparison rate combines the interest rate on your loan, plus certain fees and charges you can expect to pay.

Because we’re committed to keeping things simple at ubank, you can breathe easier knowing we don’t charge any monthly or annual fees on our Neat home loan. Because our Flex home loans come with added bonuses like fixed rates and offset accounts, you’ll also pay $250 a year in annual fees which covers up to 5 Flex home loans.

What else do you get with a ubank home loan?

In addition to our competitive rates, we also offer unlimited redraws on our award-winning variable rate home loans.

For most loans, you’ll be able to refinance straight from the comfort of your own home and skip the never-ending paperwork with our simple digital application.

How to get started

Refinancing is an important decision and weighing up the pros and cons may take a little time. It’s a good idea to do a regular check on your home loan to meet your changing needs.

Ready to take the next step with us? Use our handy refinance checklist to make sure you’ve ticked all the boxes before getting started on your application, and don’t forget to check out the 5 mistakes to avoid when refinancing.