Refinancing Home Loan

Refinancing can deliver several benefits depending on your situation: securing a lower interest rate to reduce monthly repayments, accessing equity built up in your property for renovations or investments, consolidating higher-interest debts into a single lower-rate facility, switching from variable to fixed (or vice versa), or moving to a loan with better features such as an offset account or redraw facility. We assess whether refinancing makes financial sense for your specific circumstances before recommending a change.

Savings depend on the difference between your current rate and what’s available in the market, your loan balance, and remaining loan term. Even a 0.5% rate reduction on a $600,000 loan can save over $3,000 per year. However, savings must be weighed against the cost of refinancing — including discharge fees, application fees, and any break costs if you’re on a fixed rate. We model the true cost and payback period so you can make an informed decision.

Common refinancing costs include: discharge fee from your existing lender ($150–$400), application or establishment fee from the new lender (varies), government mortgage registration and discharge fees ($100–$300 depending on state), and valuation fees ($200–$600). If you’re on a fixed rate loan, break costs can be significant and must be factored in. In some cases, lenders offer cashback incentives or waive fees to attract new borrowers — we factor all of this into our analysis.

A straightforward refinance typically takes 2–4 weeks from application to settlement. This includes the new lender’s credit assessment, a property valuation, and the discharge process with your existing lender. Having your documents ready — payslips, tax returns, existing loan statements, and property details — helps speed things up. We manage the entire process on your behalf and liaise with both lenders to keep things on track.

Yes, though options may be more limited. If your LVR is above 80%, you may be required to pay Lenders Mortgage Insurance (LMI) with the new lender — even if you paid it with your original lender. In some cases, the cost of LMI can outweigh the benefit of refinancing. However, some lenders offer LMI waivers for certain professions, and others may accept higher LVRs without LMI under specific conditions. We assess whether refinancing stacks up financially in your situation.

Yes — equity release through refinancing is a common strategy. If your property has increased in value since purchase, you may be able to refinance to a higher loan amount and access the difference as cash. This is commonly used to fund renovations, invest in additional properties, or consolidate debts. The amount you can release depends on the current value of your property and the lender’s maximum LVR. We arrange a valuation and model the available equity before proceeding.

Yes. Self-employed borrowers can refinance using the same range of products available to PAYG applicants, though income verification differs. Most lenders require two years of personal and business tax returns. If your financials don’t meet standard criteria, alt-doc options using BAS statements, accountant letters, or bank statements may be available. We have strong relationships with lenders who take a sensible approach to self-employed income, and we’ll package your application to present your position in the best light.

Each formal credit application results in an enquiry on your credit file, which can have a small short-term impact on your score. However, the impact is typically minor and temporary. Shopping around via a broker is more efficient than applying to multiple lenders directly, as we assess your eligibility and target the right lender before submitting a formal application. A successful refinance that reduces your debt burden can have a positive long-term effect on your credit profile.