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Refinance process

Follow these steps to select a new home loan that better suits your needs:

Refinance your home loan

Calculate how much time and money you could save by refinancing your home loan. Compare mortgage options to see whether switching may better suit your lifestyle and budget.

Reduce my repayments
Pay off my loan faster
Get cash out of my home

Mortgage balance

$

Monthly repayment

$

Interest rate

%

Savings over

years

The result provided is an estimate only. Please read our for more information.

Your estimated remaining loan term

0 years

Loan purpose

Loan amount

$

Deposit

Loan Term

151015202530

30 years

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Default
Company
Product

Variable Rate Investment Loan – Refinance Only

Real Time Rating™

0.00

/ 5
Interest Rate

2.94

% p.a

Variable

Comparison Rate*

2.86

% p.a

Repayment

$1,464

monthly

Savings Over Years

$50k

Savings over 10 years

Total estimated upfront fees
0
Go to site

special

Receive an extra 0.01% p.a. discount every year, up to a maximum discount of 0.30% p.a.
Company
Product

Green Home Loan

Real Time Rating™

0.00

/ 5

Winner of Best Green Home Loan, RateCity Gold Awards 2022

Interest Rate

2.63

% p.a

Variable

Comparison Rate*

3.05

% p.a

Repayment

$1,407

monthly

Savings Over Years

$56.9k

Savings over 10 years

Total estimated upfront fees
520
Go to site

Winner of Best Green Home Loan, RateCity Gold Awards 2022

Company
Product

Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest)

Real Time Rating™

0.00

/ 5

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

2.74

% p.a

Variable

Comparison Rate*

2.74

% p.a

Repayment

$1,427

monthly

Savings Over Years

$54.5k

Savings over 10 years

Total estimated upfront fees
0
Go to site

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Company
Product

Low Rate Home Loan - Prime (Owner Occupied) (Interest Only)

Real Time Rating™

0.00

/ 5
Interest Rate

3.04

% p.a

Variable

Comparison Rate*

2.84

% p.a

Repayment

$887

monthly

Savings Over Years

$47.7k

Savings over 10 years

Total estimated upfront fees
0
Go to site
Company
Product

Low Rate Home Loan - Prime (Investment) (Interest Only)

Real Time Rating™

0.00

/ 5
Interest Rate

3.19

% p.a

Variable

Comparison Rate*

2.99

% p.a

Repayment

$930

monthly

Savings Over Years

$44.3k

Savings over 10 years

Total estimated upfront fees
0
Go to site

Calculator Assumptions and Disclaimers

  • Calculations assume that details entered into calculator, including interest rates, do not change for the lifetime of the loan.
  • The calculator rounds your remaining loan term to the nearest year for some calculations, such as your estimated monthly repayments. Your exact monthly repayments may be diferent
  • All calculations are estimates only; they are not guarantees, pre-qualifcations or pre-approvals for borrowing.
  • All results are based solely upon the data entered into the calculator. Your fnal mortgage repayments will depend on your lender’s eligibility criteria among other factors.
  • Calculator does not include the cost of fees or other extra charges.
  • Calculator does not account for changes to interest rates over time.
  • The calculator is for information purposes only. Any advice is general and has not taken into account your personal circumstances.Read our full disclaimer.

Case studies

See the impact that refinancing and switching lenders made on the lifestyle and personal finances of these Australians:

"When we first moved to Australia, we joined ANZ, so naturally we got a mortgage with them too. But we weren’t happy with their rising rates so I did some research and swapped to Reduce. They were very kind and helpful, and now we’re saving almost $400 a month!"

Ana and Marian

Owner occupiers

Truganina, VIC

"We had been on a Westpac mortgage for 10 years when they sent us letters saying they were raising rates. We spoke to ING and they quickly got the ball rolling. I’m self-employed and even for me it was a straightforward process. Now we’re saving over $2,500 a year."

Steve and Emily

Owner occupiers

Roweville, VIC

"I’d been with CBA since I was a kid. One day I found a lower rate with Reduce Home Loans on a comparison site and made the switch. Reduce made it easy and straightforward, and now I’m saving almost $5,000 each year on my home and investment property."

Nick

Owner Occupier & Investor

Southport, QLD

What is refinancing, and what does it mean to refinance your home loan?

Refinancing your home loan simply means switching from your existing loan to a new one that is offered by either your current lender or a different one altogether.

Why should I consider refinancing?

As the market is continuously changing, it may be a good idea to consider regularly shopping around for a better deal on your mortgage. While the most obvious reason to consider refinancing might be to reduce your interest rate, there are plenty of other potential advantages including:

  • Paying off your loan faster with a shorter term
  • Getting a more flexible loan
  • Accessing more competitive features
  • Switching from a variable to a fixed rate, or vice versa
  • Consolidating debts
  • Making the change to a lender that provides better customer service

Are there any disadvantages to refinancing?

It’s important to take into account any fees you may be charged for refinancing your home loan, and whether or not the savings you might make on a lower interest rate would outweigh the cost of making the switch.

Some of the potential penalties you may encounter include a break fee for those currently on a fixed rate loan, a switching fee for refinancing with the same lender, and an application fee when applying for a new loan.

Additionally, refinancing may cost you time and effort when going through a new lender’s application process.

Is refinancing a good idea?

Refinancing your home loan can allow you to benefit from lower interest rates or home loan features and benefits that better suit your financial situation. If your lifestyle and personal circumstances have changed since you first applied for your home loan, and you’ve found a mortgage deal that might be better suited to your needs, you may want to consider refinancing, either with your current lender or a new one.

There are also risks to consider when refinancing. For example, the cost of fees and charges when switching loans may reduce the overall value offered by lower interest rates. You’ll also want to make sure you’re in a financial position where you can comfortably afford to refinance. 

If you’re not sure whether it’s a good idea for you to refinance right now, consider contacting a mortgage broker for more personal financial advice. 

What is a refinance home loan?

Most home loans can be used to refinance, but a refinance home loan is a mortgage offer that’s been specifically designed for borrowers who are refinancing existing loans, rather than buying property for the first time. 

Home loans for refinancing may offer lower interest rates or more flexible home loan features, though they may also require the borrower to hold extra equity in the property to reduce their loan to value ratio (LVR). 

How do I refinance my home loan?

The first step is to identify what you want to achieve by refinancing, whether that is a reduced interest rate, shorter term or something else. Once you have that established, you can begin comparing your current loan to others on the market and create a shortlist of those that fit your goals. 

Be sure to weigh up the total switching costs you may incur with any potential savings before making a decision to apply for a new loan. Our home loan refinance calculator may come in handy here.

If you are happy with your current lender, you may also consider negotiating with them to switch to one of their more competitive loans in order to save the time and energy it takes to apply for a loan at a new bank.

How much does it cost to change home loans?

When changing or refinancing your home loan, you may focus on paying less interest, but you should also account for other fees charged by your existing lender as well as the new lender. Your current lender will likely charge a loan discharge fee and possibly also a settlement fee, which can together cost you a few hundred dollars. Applying for a new loan will similarly involve an administration fee as well as a property valuation fee if the new lender insists on verifying the value of your home. Further, depending on the state or territory you live in, you may need to pay duties and fees to register the change in your mortgage. 

You may want to think about why you are changing home loans, and then use a refinancing calculator to see how you can get the most out of the switch. For instance, if you are refinancing your mortgage to pay it off faster, you could check if another lender will offer a shorter loan period, involving larger repayments. You should check whether your current mortgage lender is willing to renegotiate your loan terms before you approach a new lender and thus save on some of the fees. 

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.