Refinance your home loan: is switching worth it?

Ask your lender for a better rate first. That may save you a new application and the costs of moving. Once you have its best offer, compare another suitable loan over the same years you have left.

Add up discharge, application, valuation and registration fees, plus any fixed-rate break cost. Lenders mortgage insurance (LMI) may also apply if you borrow more than 80% of the property value. Only count cashback once you have checked that you qualify.

A lower repayment can hide a longer loan. In a $500k example at 5.90%, repayments are about $3,191 a month over 25 years, or $2,966 over 30 years. The longer term cuts the monthly payment by $225 but adds about $110,342 in interest if you pay only the minimum throughout.*

I would wait if switching costs wipe out the benefit, you plan to sell before recovering those costs, or your circumstances make a new application difficult. The guides below cover other reasons to refinance, including releasing equity or removing a guarantor.

Before changing banks, check what happens to your offset, redraw and extra repayments. A cheaper loan can still leave you worse off if it removes an offset you use or adds ongoing fees. Fixed loans can have limits on extra repayments and costs for leaving early.

If your savings sit in an offset, our offset account guide shows how to work out what it's really saving you after fees. If you keep separate accounts for bills and savings, check the new loan lets every one of them offset. Some lenders allow up to 10, others only 1. Our multiple offset comparison lists the lenders and the fees to allow for.

Borrowing against equity increases the amount you owe. Your equity is the property value less your loan balance, but the amount you can use also depends on the lender’s valuation and what you can afford to repay.

If you want to combine cards or personal loans with the mortgage, compare a shorter repayment period for that extra debt. Spreading it over the full home loan term can increase the total interest, even at a lower rate. The debt also becomes secured against your home.

The guides below go deeper on features, costs and ownership. If you're changing who owns the property or borrowing to invest, get legal or tax advice before we apply.

The new lender checks your income, living expenses, debts, repayment history and property again. Keeping up with the current loan helps, but it does not automatically mean another lender will approve it.

Start with your latest home loan statement, current rate, balance and remaining term. You will also need evidence of income, other debts and expenses. I check the lender’s document requirements before you apply, especially if your circumstances have changed since you took out the loan.

A lower valuation can leave you with less usable equity or a new insurance cost. If the valuation looks wrong, check the comparable sales before accepting it or making another application.

Once the new loan is formally approved and you are ready to proceed, we coordinate the discharge with your old lender. Keep meeting your existing repayments until settlement is confirmed, then check the new repayments and direct debits are set up. Make sure the offset is linked to the new loan. ASIC’s 2026 review found that accounts opened but never linked were the most common offset failure identified by banks.

Already missing payments? Contact your current lender’s hardship team early. A refinance should not delay that help. The National Debt Helpline provides free financial counselling on 1800 007 007.

If you have changed jobs, become self-employed or started parental leave, tell us before choosing a lender. The bank you used last time may assess your income differently now.

For contractors, casual workers and business owners, I check what income the lender will accept and which documents it needs. The guides below cover those situations and profession-specific options. Some professions can get a rate discount or an LMI waiver, but each lender sets its own list and limits.

Use our lender reviews to narrow the options, then compare an actual quote against your current lender’s best offer. The useful comparison includes fees, the remaining term, offset access and whether the lender will accept your application.

A lender may suit a straightforward refinance but be a poor fit if you also need to release equity, change borrowers or combine debts. I check those details before recommending an application.

Checked against ASIC's Moneysmart guidance on 8 October 2026. Rates and lender rules change, so we confirm them for your application before recommending a loan.

*The repayment example uses a $500k principal-and-interest loan at a constant 5.90%, with monthly minimum repayments and no fees, offset or extra repayments. Figures are rounded to the nearest dollar and are a calculation, not a current loan offer. This guide is general information, not a personal credit assessment.