Is refinancing worth it? WA costs explained
By Nathan Ellis · Updated 2026-07-08
Refinancing a home loan is worth it when the interest you save on the new home loan covers the cost of switching within a time you are comfortable with. In WA, the cost of refinancing is usually a few hundred to a few thousand dollars. That covers $450.20 in Landgate fees to discharge the old mortgage and register the new one, plus any fees your old and new lenders charge. Break costs on a fixed rate loan and lenders mortgage insurance can push it much higher.
Divide the total cost by your monthly saving to get your break-even point in months. If you will keep the loan well past that point, refinancing is likely to pay off.
Cost of refinancing a home loan in WA
In WA, refinancing fees and government charges together come from 3 places: the government, your current lender and your new lender.
| Cost | Who charges it | Typical amount |
|---|---|---|
| Discharge of the old mortgage | Landgate (WA Government) | $225.10 per mortgage, from 1 July 2026 |
| Registering the new mortgage | Landgate (WA Government) | $225.10, from 1 July 2026 |
| Discharge fee | Your current lender | $150 to $795 in Canstar’s survey, average $335 |
| Application fee or establishment fee | Your new lender | $150 to $990, average $518, and some lenders waive it |
| Valuation fee | Your new lender | $200 to $484, average $272, and some lenders cover it |
| Settlement fee | Your new lender | $100 to $995, average $243 |
| Break costs | Your current lender, fixed rate loans only | No set amount, can be thousands of dollars |
| Lenders mortgage insurance | Your new lender, if you borrow over 80% of the value | Can be several thousand dollars |
Sources: Landgate land transaction fees, Canstar (lender fee survey dated 15 May 2024, lenders that advertise a fixed fee only), Moneysmart, Aussie.
Canstar’s survey put the total cost of refinancing at $165 to $2,756, with an average of $831, before break costs and insurance. Australian lender fees are nowhere near the “2% to 5% of the loan” figure that appears in some search results. That figure comes from the United States, where refinancing works differently.
No stamp duty on a WA refinance
Refinancing in WA does not attract stamp duty on the new mortgage. WA abolished mortgage duty on mortgages first executed on or after 1 July 2008 (Stamp Act 1921, section 85A). National guides, including Moneysmart, say you may be liable for stamp duty and to check. In WA the answer for the mortgage itself is no.
The WA government costs are Landgate’s regulated fees. Landgate charges $225.10 to lodge a discharge, per mortgage, and $225.10 to register a mortgage, from 1 July 2026, and these fees are not subject to GST.
Break costs and lenders mortgage insurance
2 costs can outweigh all the other home loan fees when refinancing and switching home loans, so check them first.
Break costs on a fixed rate home loan. If you leave a fixed rate home loan before the fixed term ends, your lender may charge a break cost. Moneysmart says the break fee may be very high, and that generally the more interest rates have come down since you fixed, the higher it will be. The amount also depends on how long is left on the fixed term. Ask your lender for a written quote before you apply anywhere else. If the fixed term ends soon, compare the break cost with simply waiting.
Lenders mortgage insurance. If you have less than 20% equity, your new lender may charge lenders mortgage insurance, and Moneysmart warns this can outweigh the savings from a lower rate. Insurance paid on your current loan generally does not transfer to the new one, so NAB, Westpac and Canstar all note you may pay it twice. Moneysmart suggests asking your current lender for a partial refund of the insurance you paid if you switch. Check your loan to value ratio against a current lender’s valuation before you start.
How to work out if refinancing is worth it
Refinancing a home loan is worth it when your break-even point comes well before you expect to sell or pay off the loan. The calculation:
- Add up every cost of switching, including break costs and insurance.
- Work out the monthly saving in repayments at the lower interest rate, on the same loan amount and term.
- Divide the total cost by the monthly saving to get the number of months to break even.
Here is a worked example calculated by Compare A Broker. It uses a $500,000 principal and interest loan with 25 years left:
| Rate cut | Repayment falls from $3,407.35 to | Monthly saving | Break-even on $1,500 of costs |
|---|---|---|---|
| 6.60% to 6.10% | $3,252.14 | $155.21 | About 10 months |
| 6.60% to 6.35% | $3,329.32 | $78.02 | About 19 months |
| 6.60% to 6.50% | $3,376.04 | $31.31 | About 48 months |
A cut of 0.5 of a percentage point will cover the cost of switching, $1,500 here, in under a year. A cut of 0.1 takes about 4 years. Moneysmart’s mortgage switching calculator runs the same test on your own numbers, using your existing home loan and the new loan offer.
Keep the loan term the same when you compare. In the example above, taking a new 30-year loan at 6.10% instead of 25 years cuts the repayment to $3,029.97, but adds $115,149 in interest over the life of the loan. Moneysmart warns about exactly this: negotiate a new loan with a similar length to the one you have left.
Is your rate worth switching from?
Refinancing only pays when the rate on your existing home loan is meaningfully above the home loan rates lenders offer you today. Moneysmart says there can be a difference of more than 2% between variable rate home loans on the market.
The market average is a weak guide to your own position. The RBA’s figures for July 2026 put the average owner-occupier principal and interest rate at 6.19% on existing loans and 6.16% on new loans, a gap of only 0.03 of a percentage point (RBA). That gap is tiny. Those averages include fixed and variable loans. What matters is the loan rate on your own statement against the home loans you can actually get.
Before you refinance your home loan, ask your current lender for a better deal. Moneysmart says to tell your lender you plan to move to a cheaper loan, because it may cut your rate to keep you. At least 20% equity and a good credit score give you more to bargain with. ME Bank notes that staying with your current lender is usually cheaper than changing institutions, though Moneysmart says an internal switch may carry a switching fee.
Other reasons to refinance
A lower rate is the most common reason to refinance a home loan, but not the only one. Lenders list accessing equity for a renovation, consolidating other debts and moving to a loan with features you will use, such as an offset account. Each needs its own cost test, so take into account fees on the new loan as well as the rate.
Watch 2 traps. Consolidating short-term debts into a home loan spreads them over the home loan’s term, and Moneysmart notes that the longer you have a loan, the more interest you pay. And an introductory rate reverts to a higher rate after the honeymoon period, so compare the revert rate and the comparison rate, not just the headline rate.
Some lenders offer cashback to switch. Canstar says cashback can cover part or all of your switching costs but should not decide a long-term product like a home loan. A change in circumstances can also force a refinance, such as buying out an ex-partner: see refinancing after separation in WA.
When refinancing is not worth it
Refinancing is usually not worth it in 4 situations:
- You will sell or repay the loan before you reach break-even.
- Your fixed rate break cost is larger than the interest you would save.
- You have less than 20% equity and would pay lenders mortgage insurance again.
- The rate cut is small, such as 0.1 of a percentage point, and your costs are over $1,000.
How a broker fits in
320 businesses are listed in our refinancing directory. A broker can compare home loans, fees and break-even points across several lenders at once, handle the loan application and manage the refinancing process, and ask for fee waivers or cashback on your behalf. Ask for the full break-even calculation in writing, not just a headline rate, and check the broker’s credit licence before you share your loan details.
Checked against Landgate, WA legislation, Moneysmart, the RBA and lender pages on 26 September 2026. This is general information, not financial advice. It does not consider your objectives, financial situation or needs.
Frequently asked questions
How much does it cost to refinance in WA?
Refinancing in WA usually costs a few hundred to a few thousand dollars. Landgate charges $225.10 to discharge the old mortgage and $225.10 to register the new one. Lender fees come on top: Canstar’s 2024 survey averaged $831 in total. Break costs and lenders mortgage insurance can add thousands.
Is there stamp duty when you refinance in WA?
No stamp duty is charged on the new mortgage when you refinance in WA. WA abolished mortgage duty for mortgages first executed on or after 1 July 2008, under section 85A of the Stamp Act 1921.
How do I know if refinancing is worth it?
Divide your total switching costs by your monthly saving to get your break-even point in months. On a $500,000 loan with 25 years left, a cut from 6.60% to 6.10% saves $155.21 a month, so $1,500 of costs is recovered in about 10 months.
Can I get a better rate without refinancing?
Often, yes. Moneysmart suggests telling your current lender you plan to switch to a cheaper loan, because it may lower your rate to keep your business. Having at least 20% equity and a good credit score strengthens your position.
Will I pay lenders mortgage insurance again?
You may when refinancing. If you have less than 20% equity, the new lender may charge lenders mortgage insurance, and the policy on your current loan generally does not transfer. Moneysmart suggests asking your current lender for a partial refund if you switch.
When should I not refinance?
Refinancing rarely pays in 4 cases. You will sell before break-even, your break cost is larger than the saving, you would pay lenders mortgage insurance again, or the rate cut is about 0.1 of a percentage point.
Frequently asked questions
- How much do I need to save to make refinancing worth it?
- There's no single number, since it depends on your switching costs and how long you plan to keep the loan. As a general guide, the savings need to clear your break-even point within a timeframe you're comfortable with, often one to two years.
- What costs are involved in refinancing?
- Possible costs include a discharge fee from your current lender, an application or valuation fee with the new one, and break costs if you're on a fixed rate. Not every refinance incurs every fee, so it's worth getting a specific list for your loan.
- Does refinancing hurt my credit file?
- Applying does involve a credit check, which can have a small, temporary impact. Comparing this against the ongoing cost of staying on an uncompetitive rate is usually the more relevant question.
- How long does refinancing take?
- It varies by lender, but a straightforward refinance often takes a few weeks from application to the new loan settling. Fixed rate loans or complex situations can take longer.