Question 1

How do I know if refinancing is actually worth it?

Accepted Answer

The test is whether the saving over your remaining loan term exceeds the total cost of switching.  Costs typically include: • Discharge fee from your current lender (often $150–$400) • New lender application or settlement fees (many waive these) • Government mortgage registration and deregistration fees • Break costs, if you are within a fixed-rate period — these can be substantial  A rate reduction that looks small can still be worth thousands over a 25-year term. We model the actual figures for your loan before you commit to anything.

Question 2

Will refinancing hurt my credit score?

Accepted Answer

A refinance application creates a credit enquiry, which is visible on your credit file and can cause a small, temporary dip in your score.  What matters more is the pattern. A single refinance every few years is normal and lenders expect it. Multiple applications to several lenders in a short window looks like credit-seeking behaviour and can count against you.  This is one reason to work through a broker: we assess lender policy first and lodge one well-matched application, rather than testing your file against several lenders in sequence.

Question 3

How long does refinancing take?

Accepted Answer

Most refinances settle within four to six weeks from application, though this varies considerably by lender and by how quickly documents are provided.  The main variables are: • How fast your current lender processes the discharge request (this is often the slowest step) • Whether a full valuation is required, or an automated or desktop valuation is accepted • Turnaround times at the incoming lender, which fluctuate with volume • Complexity — self-employed income, multiple securities or company structures take longer  We start the discharge process early because it is usually the bottleneck.

Question 4

Can I refinance if I'm on a fixed rate?

Accepted Answer

Yes, but you need to check the break cost first.  Break costs are not a flat penalty. They are calculated on the lender's funding loss, which depends on how much time is left on the fixed term, the size of the loan, and how wholesale rates have moved since you fixed. They can range from negligible to tens of thousands of dollars.  Your lender will provide a break cost figure on request, and it is usually only valid for a short window. We factor that number into the comparison before recommending anything.

Question 5

How much equity do I need to refinance?

Accepted Answer

As a general rule, lenders prefer you to hold at least 20% equity — that is, a loan-to-value ratio of 80% or below — to refinance without Lenders Mortgage Insurance.  You can refinance above 80% LVR, but LMI may apply again on the new loan, and LMI already paid to your existing lender is generally not refundable or transferable. That single factor often makes refinancing above 80% uneconomic.  If you are close to the threshold, a favourable valuation can make the difference. We can order an upfront valuation with some lenders before committing to a full application.

Question 6

Should I refinance to consolidate debt?

Accepted Answer

It can help, but it deserves careful thought.  The benefit is immediate: a credit card at around 20% or a car loan at around 9% moves to a home loan rate, and your total monthly repayment usually falls significantly.  The trade-off is that you are converting short-term debt into long-term debt. A $30,000 car loan with three years left, absorbed into a 28-year mortgage, may cost more in total interest despite the lower rate — unless you deliberately keep repayments at the previous level.  We model both scenarios so the decision is made on the full numbers rather than the monthly figure alone.

Refinance Home Loans

Why People Refinance

A Sharper Interest Rate

Consolidate Other Debts

Access Your Equity

Better Loan Features

The Refinance Process

Review your current loan

Quantify the saving

Choose the right lender

Application and approval

Settlement and discharge

Before You Decide

Refinance savings calculator

When to refinance

How to refinance

Refinancing checklist & timeline

Refinancing FAQs

Find Out What Your Loan Should Cost