Refinance

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.

Updated: 15 June 2026
Read time: 8 min read
Reviewed by: emoney broker team

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

Lower or more stable repayments.
Offset, redraw, split-loan, or repayment features that suit the way you use the loan.
Debt consolidation or cash-out that needs careful cost and policy checking.
A current loan that has not been reviewed since rates, income, or goals changed.
Interest rate, comparison rate, and repayment amount.
Package, annual, discharge, valuation, application, and government charges.

Full guide

Now read the full guide

Checklist

Start with why you are refinancing

A refinance review should begin with the problem you want solved. The reason might be repayment pressure, a fixed rate ending, a rate that no longer looks competitive, renovation plans, debt consolidation, equity use, or a structure that does not fit your next stage.

Refinancing is a tool, not the goal itself. The goal might be a calmer repayment, a cleaner loan structure, a better way to use an offset account, a shorter remaining term, or a way to review several debts together before choosing a responsible path.

Starting with the reason also helps avoid a common mistake: comparing rates before checking whether the current loan can be repriced, whether the switching costs make sense, and whether the new structure would actually improve the borrower's position.

That is why a useful refinance guide should feel more like a decision map than a product pitch. It should help the borrower work out what needs checking before a lender application is treated as the next logical step.

Lower or more stable repayments.
Offset, redraw, split-loan, or repayment features that suit the way you use the loan.
Debt consolidation or cash-out that needs careful cost and policy checking.
A current loan that has not been reviewed since rates, income, or goals changed.

Guide

Review the current loan before chasing a rate

A low advertised rate can be useful, but it is only one part of the review. Check the current balance, rate type, repayment amount, fees, features, remaining loan term, fixed-rate status, and how long you expect to keep the property or loan structure.

Your current loan is the comparison point. Without that baseline, a refinance offer can look attractive while quietly removing features, adding costs, extending the repayment term, or creating extra work that does not match the size of the benefit.

This is where a broker conversation can become practical. Bring the current loan statement, rate type, repayment, offset balance, package fees, and the number of years left on the loan so the review compares the whole structure, not only a headline rate.

Interest rate, comparison rate, and repayment amount.
Package, annual, discharge, valuation, application, and government charges.
Offset, redraw, extra repayment, split, and portability features.
Remaining loan term and how a new term would change total interest.

Broker note

Compare staying, repricing, switching, and refinancing

Refinancing is not the only possible outcome of a review. In some cases, asking the current lender for a better rate, changing the existing structure, or waiting until documents or equity improve can be more sensible than lodging a new application straight away.

The current lender may have a retention option. That does not mean it is always the right answer, but it should be compared with the cost, time, and assessment involved in switching lenders.

A broker can help map the pathways in order. First, check whether the current loan can be improved. Then check whether a structure change solves the issue. Only after that should a full lender switch become the focus, unless the current lender clearly cannot meet the borrower goal.

If the borrower already has a reasonable offer from the current lender, the broker conversation can still test whether it is strong enough after fees, features, service, and future plans are considered.

Ask the current lender whether repricing is available.
Compare any retention offer against the cost of switching.
Check whether a structure change would solve the problem without moving lenders.
Review lender options only after the goal, costs, and documents are clear.

Watch out

Check costs, LMI, and the loan-term reset

A refinance can look better than it is if the estimate ignores switch costs or quietly resets the loan over a longer term. Check discharge fees, application costs, valuation fees, settlement costs, package fees, break costs, and whether lender's mortgage insurance could apply.

A lower monthly repayment can come from a lower rate, but it can also come from stretching the debt over a longer period. That may help cash flow, but it can increase total interest if the borrower does not keep a similar repayment discipline.

LMI is another hidden friction point. If the new loan amount is high compared with the property value, or if the property valuation comes in lower than expected, the cost of switching can change enough to affect the decision.

Fixed loans can have break costs if changed before the fixed period ends.
Higher LVR loans may face extra lender checks or LMI costs.
A longer new loan term can reduce repayments while increasing total interest.
Cashback offers need to be compared with rate, fees, conditions, and time in the loan.

Checklist

Prepare documents before lodging anything

A lender still needs to verify your financial position for a refinance. Preparing documents early helps a broker check whether the pathway is realistic before a lender application is lodged.

Document readiness is part of the strategy, not just admin. If the documents show variable income, changed employment, increased debt, or an unusual property situation, the broker can deal with that before a lender starts assessing the file.

Good preparation also avoids unnecessary applications. The aim is to check whether the numbers, documents, property, and lender policy are pointing in the same direction before the borrower commits time to a full refinance process.

ID, contact details, and current home-loan statements.
Income evidence for PAYG, self-employed, casual, bonus, commission, or rental income.
Bank statements, living expenses, credit limits, debts, and repayment conduct.
Property, insurance, strata, rental, or valuation details where relevant.

Next step

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Example

Use calculators as a first pass

A refinance savings calculator can test the payback period for switching costs. A repayment calculator can test comfort at different rates. Neither confirms lender policy, valuation, document fit, or whether the new loan term is masking the real cost.

Use calculator results as working notes for the broker conversation. Save the assumptions, including current balance, current repayment, proposed rate, known fees, and how long you expect to keep the property.

If the calculator only works when the savings are large or the costs are ignored, the review needs more caution. If the result still looks useful after conservative assumptions, the next step is to check lender policy and documents.

Run your current repayment and a realistic comparison scenario.
Add known switch costs before judging savings.
Check the result over the time you expect to keep the loan.
Ask a broker to review lender policy before relying on the estimate.

Guide

Understand what happens after approval

If a refinance application is assessed, approved, accepted, and settled, the new loan usually pays out the old one. Timing can depend on lender processing, valuation, documents, discharge authority, settlement coordination, and whether anything changes before settlement.

Settlement is the point where the old loan is paid out and the new loan starts, but there are still practical details to watch. Direct debits, salary payments, offset accounts, insurance evidence, and old lender communications may need attention after the refinance settles.

A careful handover matters because the borrower can otherwise end up with confusion across two lenders. Keep checking statements and account instructions until the old loan is closed and the new repayment pattern is clear.

After settlement, the review should not disappear. The borrower should know the first repayment date, where spare cash should sit, which accounts are linked, and when the next loan check should happen.

The existing lender usually needs discharge instructions.
The new lender may need signed documents and insurance details.
Settlement pays out the old loan if all requirements are met.
Repayments, offset accounts, and direct debits may need updating after settlement.

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 savings

Sources used

officialASIC MoneySmart choosing a home loan officialASIC MoneySmart switching home loans officialASIC MoneySmart using a mortgage broker officialReserve Bank of Australia cash rate target

General information only

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.