8/10/2026
Interest rate movements often prompt homeowners to take a fresh look at their home loan. That can be useful, but a lower advertised rate does not automatically make refinancing the right move. Your current circumstances, future plans, loan features and the total cost of switching all matter.
The aim is not simply to find a different loan. It is to work out whether your current loan still suits you and, if it does not, whether repricing, restructuring or refinancing would leave you genuinely better off.
Refinancing usually involves replacing your existing home loan with a new loan, often from a different lender. The new loan pays out the old one and may offer a different interest rate, repayment structure, loan term or range of features.
It may be worth reviewing your home loan if:
Your interest rate matters, but it is only part of the picture. Before you compare loans, be clear about the result you want. Are you trying to reduce your required repayments, pay your loan off sooner, create more flexibility or fund another goal?
Those objectives do not always lead to the same loan. The loan with the lowest advertised rate may not offer the offset or repayment flexibility you need. A better rate may also leave you worse off if the switching costs are high or your new loan quietly adds years to the repayment term.
A useful comparison should look beyond the headline rate and include:
Refinancing is a new credit application. Any new lender will assess factors such as your income, living expenses and financial commitments, credit and repayment history, property value and available equity.
Lending policies vary, particularly in how lenders treat overtime, bonuses, commissions, casual work and self-employment income. Qualifying with one lender does not mean every lender will reach the same result, and an advertised rate may not be available in your circumstances.
Equity is the difference between your property’s value and the amount you owe against it. As a general guide, having at least 20 per cent equity gives you more refinancing options and may help you avoid Lenders Mortgage Insurance (LMI).
Refinancing with less than 20 per cent equity may still be possible, but your choice of lenders may be smaller and LMI or other costs may apply. That additional cost can outweigh the benefit of switching, particularly if you paid LMI when your original loan was established.
If you want to release equity for renovations, an investment or another major expense, the new lender will also assess the purpose of the funds and your ability to repay the increased debt. Accessing equity is still borrowing, not free money wearing a nicer outfit.
Add up all switching costs, including discharge and registration fees, charges from the new lender and any fixed-rate break cost. Then consider the break-even period: how long it will take for the expected savings to recover those costs.
We can help calculate the likely break-even period using the rates, fees and loan structure that apply to your circumstances, rather than relying on a generic headline saving.
A different lender is not always the answer. We may be able to arrange an upfront valuation and request a pricing review from your current lender. Repricing can reduce the interest rate or fees while your loan remains with the same lender, generally with less paperwork and fewer switching costs.
In some cases, changing your loan structure, repayment frequency or the way you use your offset account may also help. If you are struggling to meet your repayments, speak to your lender’s financial hardship team as early as possible. Refinancing may not be available or appropriate if you are already experiencing financial difficulty.
Our mortgage brokers can review your current loan, approach your existing lender about repricing or restructuring, and compare suitable refinancing options from our panel of more than 60 lenders. We’ll explain the costs and trade-offs before you decide whether to proceed.
When providing credit assistance, our mortgage brokers are legally required to act in your best interests. Unlike a lender, which can offer only its own products, we can also consider whether keeping your current loan may be the better option.
If it has been a while since your loan was reviewed, our free Home Loan Health Check can show you how your current loan compares with other suitable options and whether repricing, restructuring or refinancing is worth considering.
This article contains general information only and does not take into account your objectives, financial situation or needs. Before acting on the information, consider whether it is appropriate for your circumstances. Credit approval is subject to lender eligibility, lending criteria and assessment.
