REFINANCING THAT HAS TO EARN ITS PLACE
A lower advertised rate is only part of the picture. Switching costs, loan term, features and your plans for the property can all affect whether refinancing improves your position.
We review your current loan against suitable lender options and explain plainly whether a change appears worthwhile — including when staying where you are may make more sense.
WHY PEOPLE REVIEW THEIR HOME LOAN
Rate & Repayment Review
Checking whether your current rate and repayments still compare reasonably with lender options available for your situation.
Accessing Available Equity
Reviewing whether available equity may be accessible for renovations, an investment purchase or another eligible purpose, subject to valuation, serviceability and lender policy.
Consolidating Other Debts
Bringing other debts into a home loan through debt consolidation can simplify repayments, but it can also increase the total interest paid over a longer term.
Fixed Rate Expiry
Reviewing your options before a fixed period ends, rather than moving onto a revert rate by default.
Changing Loan Features
Adding an offset account or redraw, splitting the loan, or moving between fixed and variable to suit how you manage your money.
Changing Circumstances
A change in income, family or plans for the property can mean your current loan structure no longer suits you.
WHAT DECIDES WHETHER A SWITCH IS WORTHWHILE
A refinance is only worth considering if the benefit outweighs the cost. These are some of the areas we weigh up before a change is made.
Switching Costs
Discharge fees, application fees, valuation and government charges can count against the benefit of a lower rate.
Break Costs
Leaving a fixed rate early can trigger a break cost. It varies with the lender's own calculation method and market conditions, and only your lender can quote it accurately.
Loan Term
Resetting to a longer term can lower repayments but may increase the total interest paid. We look at the term alongside the rate.
Equity & Valuation
The lender's valuation of your property can affect how much you can borrow, the options available and whether LMI applies.
Your Current Position
Your income, expenses and credit history are reassessed. A refinance is a new application, not a transfer of your existing approval.
Credit File Impact
Applying may mean a credit enquiry is recorded. The effect on a credit score is not identical for every person, so we apply only once a change appears worthwhile.
HOW A REFINANCE REVIEW WORKS
01
Review Your Current Loan
We look at your rate, repayments, features, remaining term and any fixed period or break costs.
02
Compare Suitable Lender Options
We compare your current loan with lender options that appear to fit your situation, including the full cost of switching.
03
Apply If a Change Makes Sense
If a change appears worthwhile and you decide to proceed, we prepare the application and coordinate the steps through to settlement.
ADVICE THAT INCLUDES STAYING PUT
Staying Put Is a Valid Outcome
If your current loan still compares well once the costs are counted, we will tell you. A conversation with your current lender may be the more sensible next step.
Direct Broker Access
You deal with Christian directly, from the first review through to settlement if you proceed.
Lender Options Relevant to You
We consider lender options relevant to your location, property and circumstances.
EXPLORE THE NUMBERS
Use our calculators to explore indicative repayments and how different loan amounts and terms could affect your budget. Then speak with us about how the figures fit your circumstances.
Lower repayments do not necessarily mean a lower total cost, particularly if the loan term is extended.
Estimates are a guide only, not a lending assessment or approval.
COMMON QUESTIONS ABOUT REFINANCING
How do I know if refinancing is worth it?
Compare the benefit with the full cost of switching. A lower rate can reduce repayments, but discharge fees, application fees, valuation costs, government charges and any break costs can count against that benefit, and resetting the loan term can increase the total interest paid. Your goals matter too — you may be looking for lower repayments, access to available equity, different features or a shorter term. We set out the likely costs and trade-offs against your current loan so you can decide whether a change appears worthwhile, including when staying put makes more sense.
What does it cost to refinance?
Costs vary by lender and by your situation. They may include a discharge fee from your current lender, application or establishment fees, valuation fees, government registration charges and, if you are on a fixed rate, a break cost. We list the costs that may apply to your refinance before you apply, so the comparison is made on the full picture rather than the headline rate.
Will refinancing affect my credit score?
It can. Applying for a new loan may mean a credit enquiry is recorded on your credit file, and the effect on a credit score is not identical for every person. Several applications in a short period may be viewed less favourably by some lenders. That is one reason we compare lender options first and only proceed with an application once a change appears worthwhile and you have decided to go ahead.
Can I refinance while on a fixed rate?
Often you can, but leaving a fixed rate early may trigger a break cost. The amount varies with the lender's own calculation method, the remaining fixed period, the loan balance and market conditions, and only your current lender can quote it accurately. In some cases the cost outweighs the benefit of switching; in others it may not. We help you obtain the figure and weigh it against the likely benefit before you decide, or plan a review around the end of your fixed period.
Can I access equity when I refinance?
It may be possible, depending on your property's valuation, your current loan balance, your income and each lender's policy. Accessing available equity increases the amount you owe and the interest you pay over time, and lenders may ask about the purpose of the funds. Where equity is used to consolidate other debts, those debts move onto your home, which can increase the total interest paid. We explain the potential equity position and what would still be subject to valuation, serviceability and lender policy before you decide.
Should I ask my current lender for a better rate first?
It can be worth asking. Some lenders may review your rate on request, and a retention offer can be a simpler outcome than switching. Compare any offer with the lender options available to you, including the costs of moving, before deciding. We can show you how your current loan compares, so you can have that conversation with the numbers in front of you. If your current lender's offer compares well once costs are counted, staying put may be the sensible outcome.