Refinancing Your Home Loan in Australia: What to Check in 2026

Why refinance?

If you haven't reviewed your home loan in a while, it can be worth checking whether it still suits you. Lenders sometimes offer better rates to new customers, so it pays to see how your loan compares.

Refinancing means replacing your existing loan with a different one, either with your current lender or a new one.

Reasons Australian homeowners refinance

• Lower the interest rate and reduce monthly repayments
• Access equity for renovations, an investment property, or debt consolidation
• Switch loan features — offset account, redraw, fixed vs variable
• Consolidate debt — roll high-interest credit cards or personal loans into the mortgage
• Move to a loan that better fits your current circumstances

What to compare

Before you switch, compare more than the headline rate:

• Interest rate and the comparison rate (which includes most fees)
• Features — offset account, redraw, the ability to make extra repayments
• Fees — upfront, ongoing and any exit or discharge fees
• Flexibility — fixed, variable or split, and how easy it is to change later

The comparison rate is often the more useful figure because it bundles the interest rate with most standard fees into a single percentage. Two loans with similar headline rates can cost quite different amounts once fees are included. It is also worth thinking about how you actually use your loan: a slightly lower rate with no offset account can cost more over time than a marginally higher rate with features you will genuinely use.

A simple illustration

As an illustration only, not a quote or a guarantee: on a $500,000 loan, a rate 0.50% lower would reduce monthly repayments by roughly $150. Actual savings depend on your loan, lender and circumstances, and smaller monthly savings can add up over time — but the total benefit depends on how long you keep the loan and the costs of switching.

What does it cost?

Refinancing involves costs that are usually modest next to any potential benefit, but you should know them upfront. Fees vary by lender, so check your current lender's discharge fee and the new lender's fees, along with any government mortgage registration charges. Some lenders may offer cashback incentives that can help offset these costs, subject to their terms.

Documents you'll need

Typically:

• Photo ID
• Recent payslips (or two years of tax returns if you're self-employed)
• Recent statements for your current home loan and any other debts
• Recent bank statements
• Details of the property

Questions to ask a broker

• Will switching actually leave me better off after all costs?
• Is my equity position strong enough to avoid LMI on the new loan?
• Are there break costs if I'm on a fixed rate?
• Which lenders suit my situation, and why?

The process, step by step

1. Review — we benchmark your current loan against the market
2. Strategy — we identify the lender and product suited to your goals
3. Application — we prepare and submit the paperwork for you
4. Approval & settlement — the new lender pays out the old loan; typically 2–4 weeks

When refinancing may not suit you

• If you're on a fixed rate, break costs may outweigh the benefit
• If your equity has fallen below 20% (loan-to-value ratio above 80%), LMI could apply again
• If you're planning to sell soon

A good broker will sometimes tell you not to switch. Our job is a better outcome for you, not a transaction for its own sake.

Wondering whether your loan still suits you? Request a free loan review — we'll compare your current loan against 60+ lenders at no cost.