Refinancing
Refinancing is a means to an end. Whether it is worth doing depends on your rate, your loan features, the costs of switching and your current borrowing position.
Educational information — not personalised financial advice.
Refinancing replaces your existing loan with a new one. That can change your rate, your features, your loan term and your repayments — and it triggers a fresh credit assessment. This page sets out the parts worth checking before you start.
The reason matters, because it determines what a good outcome looks like.
Switching is rarely free. Costs vary between lenders and loan types.
A lower advertised rate does not automatically mean a better outcome. Fees, features and loan term all affect the total cost of the loan.
Offset accounts, redraw, extra repayments, split facilities and package benefits can matter more than a small rate difference, depending on how you use the loan.
Exiting a fixed rate early can trigger a break cost. It depends on market rates at the time, the remaining fixed term and the loan balance, so it can be negligible or substantial.
Resetting to a new 30-year term usually lowers monthly repayments and increases total interest paid. Comparing like-for-like terms gives a clearer picture.
Refinancing is a new credit assessment. Income, expenses, debts and the lender's valuation of your property all get reviewed again, and your position may have changed since the original loan.
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FAQ
Where this comes from: Explanations are written from publicly available Australian lending and government information and are reviewed when policy changes. Confirm current figures with the relevant lender or state revenue office before relying on them.
Model your current loan against an alternative scenario, then decide whether it is worth talking to a finance professional.