Refinancing Your Home Loan in Melbourne: How to Save Thousands in 2026
If you haven't reviewed your home loan in two years, you're probably overpaying. Here's how refinancing works and how much Melbourne homeowners are saving.
Why refinance?
Lenders reserve their sharpest rates for new customers, not loyal ones. If your loan is more than a couple of years old, there's a good chance you're paying a "loyalty tax" — a higher rate than you'd get today.
Refinancing means replacing your existing loan with a better one, either with your current lender or a new one.
Reasons Melbourne 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
- Escape a rate that's no longer competitive
How much could you save?
On a $500,000 loan, dropping your rate by just 0.50% saves roughly $150/month — about $1,800 a year, or $54,000 over a 30-year term. Larger loans save even more.
What does it cost?
Refinancing isn't free, but the costs are usually small compared to the savings:
- Discharge fee from your old lender — $150–$400
- New lender fees — sometimes waived
- Government mortgage registration — a few hundred dollars
Many lenders offer cashback incentives that offset these costs entirely.
The process, step by step
- Review — we benchmark your current loan against the market
- Strategy — we identify the best lender and product for your goals
- Application — we prepare and submit everything for you
- Approval & settlement — the new lender pays out the old loan; typically 2–4 weeks
When NOT to refinance
- If you're on a fixed rate, break costs may outweigh the savings
- If your property value has dropped below 80% equity, LMI could apply again
- If you're planning to sell soon
We'll tell you honestly if refinancing isn't worth it for you.
Curious what you could save? Request a free loan review — we'll compare your current loan against 60+ lenders at no cost.
General information only. Your complete financial situation will need to be assessed before acceptance of any proposal or product.