If you haven't reviewed your home loan in a couple of years, there's a good chance new customers are getting a better rate than you. But refinancing isn't free, so it's worth checking the numbers properly.
Signs it's time to review
- Your fixed rate is ending. See what to do when your fixed rate ends.
- You haven't reviewed your rate in two years or more.
- You want to renovate, invest or consolidate debt.
- Your property has grown in value and your LVR has dropped under 80%.
The refinancing checklist
- Ask your lender first. A rate discount without switching is the cheapest win.
- Add up switching costs: discharge fee, government registration fees, any application or valuation fees, and break costs on fixed loans.
- Subtract cashback if the new lender offers it, but don't choose a loan on cashback alone.
- Check LMI. Above 80% LVR you may pay it again.
- Compare features: offset, redraw, fees and package costs.
- Keep repayments the same. If the new loan resets to 30 years, keep paying at least your current amount.
Our refinance savings calculator shows the monthly saving and how quickly switching costs are recovered.
Releasing equity when you refinance
Refinancing is also a chance to access equity for renovations or an investment. Keep the extra borrowing in a separate split. See equity release and using equity to buy an investment property.
Get a free refinance review
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