Home Loan Refinance
Considering a switch from your current home or investment property loan? Refinance starts with comparing what you have, what you need and the cost of changing lenders.
Realloans Australia can help you assess available options. A lower repayment alone does not mean a lower total cost, and staying with your current loan may make more sense.
What Is Refinancing a Home Loan?
Refinancing replaces an existing mortgage with a new loan. You can also ask your current lender about repricing or changing features before deciding whether to switch.
Reasons to review your current loan include:
- Reviewing interest rates and ongoing fees
- Comparing repayments and the remaining term
- Considering fixed or variable rates and loan features
- Assessing additional borrowing, subject to usable equity and serviceability
- Considering consolidation only after comparing total cost and home-security risks
The right comparison depends on your remaining loan term, switching costs, property and financial position. Any new lending is subject to the lender’s assessment.
Is It Time to Refinance?
These changes can be reasons to review your loan, rather than reasons you must refinance:
- Your fixed-rate period is ending
- Your current rate or fees have changed
- You need different loan features
- Your income, expenses or household plans have changed
- You are considering renovations or additional borrowing
Ask us to review your current loan and discuss whether a refinance application is worth considering.
Why Refinance Through Realloans Australia?
We start with your current mortgage, your reasons for reviewing it and the trade-offs you are willing to make.
As your broker, we can help with:
- Reviewing your current balance, term, features and costs
- Comparing suitable options through our lender panel, not every loan on the market
- Explaining relevant documentation and lender conditions
- Assessing an equity-access request against valuation and repayment requirements
- Helping prepare an application and coordinate settlement
The lender assesses your application and decides whether to approve it. Timing depends on the lender, valuation, documents and settlement requirements.
What Should You Compare Before Refinancing?
Compare a proposed refinance with your existing home loan on a like-for-like basis:
- Compare interest and fees over the same remaining term, not just the advertised rate
- A lower repayment from extending the term may increase total interest
- Include discharge, application, valuation, government and any fixed-rate break costs that apply
- Check whether offset or redraw features are gained, lost or priced differently
- Work out how long potential savings would take to recover switching costs
- Treat equity access as additional borrowing, not free money
How the Refinance Process Works
A refinance review and application usually involve these steps:
- Review: provide your current balance, remaining term, repayment, rate and features
- Compare: weigh staying with your lender against available refinance options and switching costs
- Decide: consider the proposed term, total cost, features and conditions
- Apply: we help prepare the application; the lender assesses income, debts, credit history and security
- Settle: if approved and you accept the offer, the new loan replaces the existing loan at settlement
Before proceeding, check the proposed loan documents, fees, conditions and repayment schedule. An indicative comparison is not an approval or a guarantee of savings.
Discuss Your Current Home Loan
Share a recent loan statement, your remaining term and what you want to change. We can discuss available options and the information a lender may need.
You can decide whether to proceed after considering the costs and trade-offs.
Refinance Questions
Is refinancing worth it?
It depends on costs, the remaining term, features and your plans. Compare staying with your lender against switching. Consider how long you expect to keep the loan and the time needed to recover switching costs.
When should I review my home loan?
A fixed-rate period ending, a rate or fee change, or a change in your finances can prompt a review. Reviewing does not mean you need to refinance.
How much equity do I need to refinance?
Requirements vary by lender and loan. The lender uses its accepted property valuation and proposed loan amount to assess the loan-to-value ratio. Additional borrowing, mortgage insurance and other costs depend on the product and your circumstances.
Can I refinance with self-employed income or credit issues?
A lender will assess income evidence, expenses, debts, repayment history and the property. Self-employment or credit issues can affect available options, pricing and documentation. Approval cannot be assumed.
Should I consolidate other debts into my mortgage?
Compare the total repayment cost, not only the new monthly amount. Repaying short-term debts over a longer mortgage term can increase interest. Moving unsecured debt into a home loan also puts your home at risk if you cannot repay.