Guide
Refinancing Guide
Refinancing could save you thousands – or it could cost you. This guide helps you understand when refinancing makes sense, how the process works, and what to watch out for.
Average potential savings
$3,000+ per year
Based on 0.5% rate reduction on $600,000 loan
Why Refinance
Reasons to consider refinancing
Lower your interest rate
Even a small rate reduction can save thousands over the life of your loan. If rates have dropped or you've been on the same rate for years, you could be paying more than you need to.
0.5% lower on a $500K loan = ~$1,500/year saved
Access your equity
If your property value has increased, you may be able to access the equity for renovations, investments, or other purposes.
Property up $100K = potential $80K accessible equity
Consolidate debts
Roll high-interest debts (credit cards, personal loans) into your home loan at a much lower rate. Just be mindful of extending the term.
18% credit card → 6% home loan rate
Change loan features
Switch to a loan with better features like an offset account, redraw facility, or more flexible repayment options.
Offset account can save thousands in interest
Fixed rate ending
When your fixed term expires, your loan typically reverts to a higher variable rate. This is the perfect time to shop around.
Don't accept the revert rate – compare first
Change your loan term
Extend to lower repayments, or shorten to pay off faster and save on interest. Your circumstances may have changed since you first borrowed.
Shorten by 5 years = major interest savings
Self-Assessment
Signs it's time to refinance
If any of these apply to you, it's worth getting a comparison.
Ticked more than 2? You could be leaving money on the table. Get a free comparison
The Process
How refinancing works
Review your current loan
Day 1Review your current loan
Day 1Check your current interest rate, loan balance, and any features you're using. Look for any exit fees or break costs (especially for fixed loans).
Get a comparison
Day 1-2Get a comparison
Day 1-2We'll compare your current loan against options from 70+ lenders to see what savings are possible. This is free and no-obligation.
Calculate the costs vs savings
Day 2-3Calculate the costs vs savings
Day 2-3Factor in any discharge fees, new loan setup costs, and potential LMI. We'll show you the break-even point and total savings.
Submit your application
Day 3-7Submit your application
Day 3-7If refinancing makes sense, we'll prepare and submit your application. You'll need income documents, ID, and details of your current loan.
Valuation and assessment
Week 1-2Valuation and assessment
Week 1-2The new lender will value your property and assess your application. We'll track progress and handle any questions.
Approval and settlement
Week 2-4Approval and settlement
Week 2-4Once approved, you'll sign new loan documents. The new lender pays out your old loan, and the switch is complete.
Total time: Most refinances complete within 2-4 weeks. We handle the heavy lifting so you can focus on your day.
Costs
What does refinancing cost?
Understand the potential costs so you can calculate if refinancing is worth it.
| Cost | Typical Range |
|---|---|
| Discharge fee Fee from your current lender to release your mortgage | $150 - $400 |
| Application/setup fee Many lenders waive this for refinancers | $0 - $750 |
| Valuation fee Often waived or covered by the new lender | $0 - $600 |
| Settlement fee Legal/conveyancing costs for the transfer | $200 - $500 |
| Break costs (fixed loans) Can be significant – always check before refinancing | Varies widely |
| Lenders Mortgage Insurance May apply if you have less than 20% equity | If LVR > 80% |
Break costs warning: If you're on a fixed rate, break costs can be substantial – sometimes tens of thousands of dollars. Always get a break cost estimate before proceeding.
Caution
When refinancing might not make sense
High break costs on fixed loans
Break costs can exceed any savings. Always calculate the total cost first.
Less than 2 years into your loan
You may not have built enough equity, and setup costs may outweigh short-term savings.
Planning to sell soon
If you're selling within 1-2 years, refinancing costs may not be recovered.
Credit issues since your original loan
New lenders will assess your current situation. If your credit has worsened, you may not get a better deal.
Minimal savings
If the rate difference is small and fees are high, it may not be worth the hassle.
Market Update
Refinancing in 2026
RBA cash rate: 4.10%
The RBA cut rates in February 2025. Lenders are competing for refinancers with sharper rates and cashback offers.
Cashback deals available
Many lenders are offering cashback incentives of $2,000-$4,000+ to attract refinancers. These can offset switching costs.
Market conditions change frequently. We stay across the latest offers so you don't have to.
Is it time to refinance?
Get a free comparison and see how much you could save
No obligation, no cost. We'll show you the numbers so you can decide.