Refinance
How refinancing works
Understand the refinance process before comparing rates, documents, valuation, lender policy, and switch costs.
Reviewed for general guidance
Reviewed for general guidance. Reviewed by emoney broker team. Last updated 15 June 2026. Sources are listed below so borrowers can check the public references behind this general information before speaking with a broker.
Key checks before you decide
- Current lender, balance, rate, comparison rate, and repayment.
- Fixed, variable, split, interest-only, or introductory-rate status.
- Offset, redraw, extra repayment, package, and annual fee details.
- Reason for the review, such as repayments, equity, structure, or debt consolidation.
- Ask whether the current lender can reprice the loan.
- Compare the retention offer with the cost of switching.
Full guide
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Checklist
The first step is a current-loan review
Refinancing should start with the loan you already have. Check the balance, rate, repayment amount, rate type, features, fees, fixed-rate status, remaining term, and the problem you want solved.
- Current lender, balance, rate, comparison rate, and repayment.
- Fixed, variable, split, interest-only, or introductory-rate status.
- Offset, redraw, extra repayment, package, and annual fee details.
- Reason for the review, such as repayments, equity, structure, or debt consolidation.
Broker note
Compare staying before switching
A refinance may mean moving lenders, but it can also start with asking the current lender for a better rate or structure. The useful comparison is staying, repricing, restructuring, or switching after costs and policy are checked.
- Ask whether the current lender can reprice the loan.
- Compare the retention offer with the cost of switching.
- Check whether a structure change solves the issue without a new lender.
- Only move to application once the purpose is clear.
Watch out
The new lender still assesses the file
A refinance is not automatic. Income, expenses, credit conduct, property value, loan purpose, LVRHome Loans / Loan decisionsLVR and LMI explainedUse this when a guide mentions loan-to-value ratio, lenders mortgage insurance, or low-deposit trade-offs.Open page , and documents still need to fit lender policy before a loan can proceed.
- Income may need recent evidence.
- Credit limits and debts still affect serviceability.
- The property may need valuation and security checks.
- Cash-out, debt consolidation, or investment purposes can need extra explanation.
Checklist
Prepare documents before lodging
A broker review can often start with a first-pass document set. The exact lender checklist can then be confirmed before an application is lodged.
- ID and contact details.
- Recent income evidence for each borrower.
- Current home-loan statements, repayment, rate type, and fixed expiry if relevant.
- Debts, credit-card limits, living expenses, property details, and insurance information.
Next step
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Use calculators to compare the path
A refinance savings calculatorRefinance savings calculatorCompare the current loan with a new-rate scenario and see whether switching costs may be recovered.Deciding whether a refinance is worth a broker review before starting lender work.Open calculator can test the payback period for switch costs. A repayment calculatorHome loan repayment calculatorTest whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.Checking repayment comfort across purchase, refinance, or rate-change scenarios.Open calculator can test the new repayment. The calculator result still needs policy, valuation, and document checking.
- Compare current repayment with a realistic alternative.
- Include discharge, settlement, application, valuation, and package costs.
- Check whether a longer term is creating the lower repayment.
- Ask a broker to review assumptions before relying on the estimate.
Guide
Settlement pays out the old loan
If the refinance is approved, accepted, documented, and settled, the new loan usually pays out the old one. Timing can depend on discharge instructions, settlement coordination, lender documents, and any final verification.
- The existing lender usually needs discharge authority.
- The new lender may need signed loan documents and insurance details.
- Direct debits, offset accounts, and salary payments may need updating.
- Keep watching both lenders until settlement and repayments are confirmed.
Calculator next step
Refinance savings calculator
Compare the current loan with a new-rate scenario and see whether switching costs may be recovered.
- Best for
- Deciding whether a refinance is worth a broker review before starting lender work.
- What it calculates
- Current repayment, new repayment, estimated switching costs, monthly difference, and rough break-even.
A broker still needs to check discharge costs, valuation, features, cashback rules, income, documents, and lender policy.
Open Refinance savingsSources used
This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.
Related guides
Keep moving through the decision.
Refinancing guide: how to review your home loan
A direct refinancing guide for reviewing your current loan, checking costs, comparing options, and deciding whether to speak with a broker.
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When should I refinance my home loan?
Common refinance triggers to check, including rate changes, fixed-rate expiry, equity use, repayment pressure, and life changes.
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Refinancing costs explained
A guide to common refinance costs such as discharge fees, application fees, valuation fees, government charges, break costs, and package fees.
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