Review the current loan
Check loan balance, interest rate, repayment type, remaining term, fees, fixed or variable status, offset or redraw use and what you want to change.
Before changing loans
How refinancing works
Refinancing means replacing or changing your current home loan. The useful question is not just whether another rate is lower, but whether the new loan still fits after costs, features, lender policy and your plans are checked.
Broker-led review
Start with the loan you already have.
A good refinance review compares the current loan against the change you want to make. That may be rate, repayment amount, features, loan structure, equity access, debt consolidation or fixed-rate expiry.
The usual refinance path
The order can change by lender and borrower situation, but these are the checks most people should expect.
Estimate the costs
Allow for discharge fees, application fees, valuation fees, government charges, settlement costs and any fixed-rate break cost that may apply.
Compare realistic options
A broker can compare rate, comparison rate, fees, features, cashback conditions, lender policy and whether the new loan structure is practical.
Prepare documents
Lenders may ask for ID, income evidence, bank statements, current loan statements, property details and information about debts and expenses.
Apply and verify
The lender reviews the application, verifies information, may order a valuation and confirms whether the loan meets policy.
Settle and switch repayments
If approved and accepted, the old loan is paid out at settlement and the new loan starts. Repayment dates, direct debits and offsets may need updating.
What a lender may assess
Income and employment
Payslips, tax evidence, business income or other income evidence may be checked depending on borrower type.
Expenses and debts
Living expenses, credit cards, personal loans, car loans, buy-now-pay-later and other commitments can affect servicing.
Property value and LVR
A valuation can change usable equity, LVR, pricing, LMI risk and available lender options.
Loan purpose
The review may be assessed differently if you are only switching, borrowing more, consolidating debt or funding a renovation.
When refinancing may not be worth it
A lower advertised rate does not automatically mean a better outcome.
Costs take too long to recover
If switch costs are high or you may sell soon, the break-even point may not make sense.
The repayment falls only because the term resets
Starting a new longer term can reduce the monthly repayment while increasing total interest over time.
Important features are lost
Offset, redraw, extra repayment flexibility, package benefits or split-loan flexibility can matter as much as rate.
Fixed-rate break costs are material
Leaving a fixed loan early can involve break costs, so the lender should quote the cost before a decision is made.
Useful next checks
Use calculators and related pages as preparation only. The figures are estimates and need broker and lender review before you rely on them.
CalculatorRefinance savings calculatorCompare the current loan with a new-rate scenario and see whether switching costs may be recovered.Best forDeciding whether a refinance is worth a broker review before starting lender work.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorHome loan repayment calculatorTest whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.Best forChecking repayment comfort across purchase, refinance, or rate-change scenarios.Estimate only. A broker still needs to check lender policy and fit.Open calculator PageCheck refinance costsUnderstand switch costs, break costs, LMI risk and the break-even point before comparing a lower rate.Open PageDocuments needed to refinancePrepare the common ID, income, loan, debt and property evidence before a broker conversation.Open
Ready for a refinance review?
Turn the refinance question into a broker review.
Quick Check collects the basic context for emoney. It is not a loan application, approval, credit advice or a loan recommendation.
Refinance FAQ
Questions borrowers ask before changing loans
How long does refinancing take?
Timing depends on the lender, valuation, documents, current lender discharge process and settlement requirements. Treat any timeframe as an estimate until the file is assessed.
Do I need to change lender to refinance?
Not always. Sometimes the review is with the current lender, sometimes it involves comparing other lenders, and sometimes staying put is the better starting point.
Can I refinance if I want to borrow more?
Possibly, but borrowing more changes the assessment. Lender policy, property value, LVR, income, debts, repayment impact and loan purpose need to be checked.
Before changing
Check rate, costs, documents and timing first.
Refinance decisions are easier when the whole loan is reviewed, not only the advertised rate.