Refinancing should improve the overall lending position after costs—not simply replace one rate with another.
Define why you are refinancing
Common goals include reviewing pricing, changing features, consolidating eligible debt, adjusting cash flow or accessing equity for an acceptable purpose.
A clear objective makes it easier to decide whether the switch actually works.
Compare the full cost
Consider discharge fees, application or valuation costs, package fees, government registration charges, fixed-rate break costs and the effect of resetting the loan term.
A lower monthly repayment created by extending the term may increase total interest over time.
Review structure and features
Offset accounts, redraw, repayment flexibility, fixed or variable splits and future plans can be as important as price. Features have value only if you will use them.
Prepare for the switch
The new lender commonly needs updated income, expenses, liabilities, identification and statements. The current lender also needs a discharge request. Keeping both processes aligned helps reduce avoidable delay.
Common questions
How often should I review my home loan?+
A periodic review and a review after major life or rate changes can be useful, but refinancing should proceed only when the total benefit justifies it.
Can refinancing hurt future borrowing?+
Any new credit application and changed debt structure can affect your credit profile and future assessment, so avoid unnecessary applications.
This guide does not consider your objectives, financial situation or needs. Lending policies, government programs and thresholds can change. Obtain current credit, legal, tax or financial advice as appropriate.