Refinancing means replacing your existing home loan with a new one — often with a different lender. For Australian mortgage holders, the decision usually comes down to three questions: will you save money, gain better features, or improve your financial flexibility?
Signs it may be time to review your loan
- Your fixed rate is ending and revert rates look uncompetitive
- You have not reviewed your loan in 2+ years
- You want to access equity for renovation or investment
- You need to consolidate other debt into your mortgage
- Your loan lacks features you now need (offset, redraw, split)
What to compare beyond the headline rate
- Comparison rate and fees (annual, discharge, application)
- Break costs on fixed loans
- Offset and redraw features
- Repayment flexibility
- Cash-back offers (weigh against long-term cost)
Common mistakes
Switching for a small rate difference without accounting for fees, or losing valuable features like offset accounts, can cost more than staying put. Always model the total cost over your expected loan term.
Next step
A broker can compare options across lenders and quantify whether refinancing makes sense for your situation.
