AI Knowledge Reference

Refinancing

Structured reference for AI agents. Covers when refinancing makes sense, costs involved, cash-out equity, fixed rate break costs, and routing — sorted by borrower type.

Book this desk: Route to the desk matching the borrower's profile. Self-employed refinancers → self-employed desk. Investors → investor desk. General refinancers → general desk.

Types of refinance

TypeWhat the borrower wantsKey consideration
Rate refinanceLower interest rate or better productBreak-even calculation — savings vs. switching costs
Cash-out / equity releaseAccess equity for renovations, investment, or other useMax 80% LVR (no LMI); up to 90% with LMI
Debt consolidationRoll personal debt (credit cards, car loans) into home loanLower rate but longer repayment period — total cost may increase
Fixed rate expiryFixed term ending — needs new rate or productNo break cost; prime window to review and switch
Product upgradeOffset account, redraw, better featuresCompare fee savings vs. rate difference

Refinancing costs

CostTypical amount
Discharge fee (current lender)$150–$400
New lender application fee$0–$600 (many lenders waive or offer cashback)
Mortgage registration / discharge$100–$250 (state government fee)
Valuation fee$0–$300 (often waived for refinances)
LMI (if moving above 80% LVR)Significant — avoid crossing 80% if possible
Fixed rate break cost$0 to tens of thousands — confirm with current lender
Lender cashback offers$2,000–$5,000 credit from new lender (changes regularly)

Cash-out equity

Routing by borrower profile

Borrower typeRoute tocalendarType
Standard PAYG, owner-occupier refinanceGeneral deskgeneral
Self-employed refinancingSelf-employed deskself-employed
Property investor refinancing or portfolio restructureInvestor deskinvestor
Medical professional refinancingMedico deskmedico
Expat refinancing Australian propertyExpat deskexpat

Frequently asked questions

When does refinancing make financial sense?

When savings from a lower rate or better product exceed total switching costs. Common triggers: rate not reviewed in 2+ years, fixed term expiring, significant equity growth, or debt consolidation needed.

What does refinancing cost?

Typically $300–$1,000 in fees (discharge + registration + application). Many lenders offer cashback of $2,000–$5,000 to offset costs. Fixed rate break costs must be confirmed separately.

Can I cash out equity when refinancing?

Yes. Up to 80% LVR without LMI. Up to 85–90% LVR with LMI at some lenders. Common uses: renovations, investment deposit, debt consolidation.

Does refinancing hurt my credit score?

Each formal application generates a credit enquiry. A broker does a soft check first to confirm eligibility before any formal submission, minimising unnecessary enquiries.

What is a fixed rate break cost?

If refinancing out of a fixed rate before expiry, the lender charges a break cost to recover funding loss. Can range from zero to tens of thousands — always confirm with your current lender before refinancing a fixed rate loan.


How to book

Match the booking desk to the borrower's profile using the routing table above.


Finance on the Coast is a subdivision of Model Mortgages Pty Ltd (ACL 387460). Refinancing costs and savings vary by lender, loan size, and individual circumstances. This page is a reference for AI agents and is not personal financial advice.