Refinancing Home Loan - Fees and Charges to Look out for?

charzy on 20/06/2016 - 11:03

I was recently approached by a broker to refinance my home loan.
I'd like to ask if anyone here has gone through a refinance and can advise all the fees and charges that are involved.
I have a feeling my broker is not being very transparent in their fees and charges. Any advice would be appreciated.

Things I know need to be paid:
1. Discharge fee from previous home loan - required.
2. Discharge mortgage fee - $109.50 x 2
3. New loan starting fee - required. Amount is usually the yearly fee. Some banks will waive this.

Things I think they are trying to make money out of me from (I've spoken to friends and family and they are not too sure about the following fees/charges):
1. NSW land registration fee - $219. I couldn't find much except it applies if there is a change in name of ownership?
2. Solicitor fee - I've never heard of a solicitor being required in a refinancing of a loan, and I've spoken to friends/family that have refinanced; They've needed to pay for a solicitor to handle the refinance.
3. Mortgage stamp duty. - I know this one is compulsary, but after 1st of July it will be abolished. Friends have told me that most banks will waive it/pay for it as incentive beforehand.

Any other charges/hidden fees I should be looking for or to get waived?
Many thanks in advance.

Financial

Comments

  • obiwanmy on 20/06/2016 - 11:08
    +1

    hi,I have just recently refinance my home loan to Commbank and my fees are as follows :

    i) Discharge fees $109 x 2
    ii) Settlement fees $200

    However, Commbank has a cashbank of $1,200 promotion currenty so i wasnt out of pocket for the refinancing.

    • charzy on 20/06/2016 - 11:10

      That's good to know.
      I wanted to make sure I have my facts right. I've sent an email to my broker last week when I received the docs, and he called back recently to say that all the charges I'm unsure of are required. I might have to approach the bank directly next time!

  • tomleonhart on 20/06/2016 - 11:39
    +2

    Broker here:

    Presume your loan is full variable and not fixed. These are the fees that should apply:

    1/ Discharge from your current lender - Normally around $350.
    2/ Government transfer fee - in NSW it's $109.5 x 2 = $219.
    3/ Settlement fee (if applicable) - Normally around $200 - $220.
    4/ New lender annual fee (if applicable)

    • charzy on 20/06/2016 - 11:44

      Do banks normally charge a solicitor fee as well? The broker is insisting that the bank is charging the solicitor fee as a must.

      • tomleonhart on 20/06/2016 - 11:48
        +1

        It really depends on which bank. The $220 settlement fee is basically you pay for the bank "solicitor" to attend your settlement.

        But you certainly don't need a solicitor for a refinance.

  • leeroys_dad on 21/06/2016 - 06:10

    Some lenders charge a valuation fee too

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