Refinance costs

[Beefme]

What are The legal costs involved in a simple refinance from one bank to another? Also can you recommend any cheap law firms for this?

Thanks

[Anthonyacat]

I was recently quoted $895 including GST, or $985 for a property in a company.

I would be interested to hear if this is in line with others?

[Rosco]

What are The legal costs involved in a simple refinance from one bank to another? Also can you recommend any cheap law firms for this?

Thanks

Hi Beefme,

Any quote or price depends on the detail. One property? 10 properties? Sole Trader with just one guarantee? Or Trust with a person needing an independent guarantee, security over another property and multiple guarantees? Plus Trust minutes?

Also why do you want cheap? Don't you want someone who does this right and does a good job?

I would suggest always getting a quote for legal items, but you will need to give a lot more details to the legal firms!

Ross

[Beano]

Ross is quite right
Thoroughly competent lawyer is what you should be seeking
I am happy to provide the cost but my one is not cheap ...but he is thoroughly competent
He even visited the site to check out the easements.

[Anthonyacat]

Is there a lot that can go wrong in a refinance? I don't have any legal background but imagine it is a fairly transactional exercise. If that is correct I'd be happy to save some money with a no-frills service, while making sure to find a 'thoroughly compentent' lawyer (whatever the necessary cost) for something more important, like a purchase or agreement review.

[Ivan McIntosh]

It's fairly transactional. It's not like your client is purchasing a house it doesn't know much about. Having said that, the banks can generate up to four pages of items to tick off. Cost will also depend on guarantors, involvement of companies and/or trusts with consequent resolutions and waivers, and notice to the body corporate if its a unit title.

Most banks will pay your legal costs on the refinance anyway, and give you more besides.

I wouldn't have thought your costs were unreasonable Anthony. Do they include the discharge and new mortgage registration costs?

[JBM]

My refinancing of company loans (with security of family trust property) has always be around $1200-$1500 ....so when I was offered only about the same to cover costs from another bank ASB ..it really wasn't worth it unless their fixed rate was much lower which it wasn't ....

[Anthonyacat]

Most banks will pay your legal costs on the refinance anyway, and give you more besides.

I wouldn't have thought your costs were unreasonable Anthony. Do they include the discharge and new mortgage registration costs?

It's exactly that 'more besides' that makes the fees matter. If the bank just paid your fees it'd be irrelevant how much they cost, but they give you a fixed amount, from which you pay the charge.

To my knowledge the fee I quoted above was all inclusive. They also mentioned they would do a discount if I moved all three of my ANZ properties together to the same new bank - though I forget the specifics of the discount it was something like 30%.

As it turns out, ANZ matched the new banks rates anyway, so no sense in breaking a good relationship for very minor financial gain.