What fees do you pay when switching an SMSF loan?

Four buckets make up nearly every switch:

  • Discharge fee on your current loan — typically $300–$2,200 depending on the lender you’re leaving.
  • Legal and documentation fees — $0–$1,500. Some pathways reuse your existing legal advice, which trims this sharply.
  • Valuation — $0–$400+, sometimes waived under promotion.
  • Application or establishment fees — $0 on some products, up to 1%+ of the loan on others. On a large loan this is the one to watch.

One more that hides in the fine print: early-exit fees on your current loan. Several specialist lenders charge around 2% if you repay inside three years, or three months’ interest inside five. Check your existing loan’s discharge terms before celebrating a lower rate.

How do you know if switching is worth it?

Two numbers decide it: the break-even month — when your accumulated savings have repaid the switching costs — and the 3-year net saving, which is 36 months of savings minus those costs.

Typical switching cost range across the panel

$1.2–4k

Panel estimates, as at 23 August 2026.

Break-even in the worked example below

Mo. 3

Your figure depends on your balance, rate gap and fees.

Worked example. An $850,000 loan at 8.50% with 25 years remaining costs about $6,840 a month principal and interest. Refinancing at an indicative 7.09% drops that to roughly $6,050 — a saving near $790 a month. Against $2,250 of switching costs that’s break-even around month 3 and a 3-year net saving near $26,000. (Example uses indicative pathway rates as at 23 August 2026; it ignores rate movements, fee changes and any early-exit fee on the current loan.)

Run your own numbers

The calculator does this maths for your loan — costs first, savings second.

Check my savings

Which switching fees can you avoid right now?

As at 23 August 2026, several panel lenders are waiving the fees that usually dominate the bill — application, settlement and valuation fees — with most of these promotions dated to expire between 12 November and 30 December 2026. One purpose-built refinance product waives application, settlement and legal fees entirely, taking switching costs close to zero.

Promotions change monthly and each has eligibility conditions. The calculator’s cost estimates assume typical fees, not best-case waivers — any waiver Nick secures improves the numbers from there.

When does switching cost more than it saves?

  • A small remaining balance — fees are fixed, savings scale with the loan, so below roughly $150k the maths gets thin.
  • A narrow rate gap — if your current rate already sits inside the available ranges, there may be nothing to capture.
  • Early-exit fees on the current loan — a 2% exit fee on $800,000 is $16,000, which can wipe out years of savings.
  • A short horizon — planning to sell inside the break-even window makes switching a donation to the legal profession.

If the calculator tells you switching may not pay off on your numbers, that answer is the product working as intended — not a dead end. Check back as rates move.