Refinancing is one of the most effective ways to reduce what you pay on your home loan. This checklist tells you exactly what to prepare, what to expect, and what to watch out for.
The average Australian who refinances saves $3,000 or more per year. With 3 RBA rate cuts in 2026, the gap between what loyal borrowers pay and what new customers are offered has rarely been wider. This checklist walks you through the full process from start to finish.
Find your current interest rate on your loan statement or online banking. Compare it to the best available rates on the market. If the gap is more than 0.5%, refinancing is almost certainly worth investigating.
Your equity is your property's current value minus your outstanding loan balance. Most lenders want at least 20% equity for the best rates. Get a current market appraisal to estimate your property's current value.
You will need: last 2 payslips (PAYG) or last 2 years tax returns (self-employed), last 3 months bank statements, recent loan statements, current rates notice and valid photo ID. Having these ready speeds up the process significantly.
Your current lender may charge a discharge fee and, if you are on a fixed rate, potentially significant break costs. Request a payout figure and break cost estimate from your current lender before proceeding.
Calculate your annual saving at the new rate, subtract the switching costs, and divide by the annual saving to get your break-even period. If you plan to stay longer than the break-even period, refinancing almost certainly makes sense.
Once you choose a lender, the application takes 1–2 weeks. Settlement — your new lender paying out your old lender — typically follows 2–4 weeks later. Your new lender handles most of the process.
These are the mistakes that cost people money or delay their application — and how to avoid them.
When you are ready, we refer you to a vetted, ASIC-licenced specialist who specialises exclusively in home lending. No generalists. No pressure. No cost to you.
Technically you can refinance as often as you like, but each refinance involves discharge fees, application fees and a credit enquiry. It makes sense when the savings clearly outweigh the costs — typically when you can save 0.5% or more per year.
A formal loan application involves a credit enquiry which temporarily reduces your score by a small amount. This typically recovers within 3–6 months. Multiple applications in a short period have a greater impact.
Missed repayments make refinancing more difficult. Some specialist lenders will consider applications with adverse credit history but at higher rates. The more time since the missed payment, the better your options.
Yes — refinancing is also an opportunity to access equity for renovations or investments. This is called a cash-out refinance. Lenders will assess your ability to service the larger loan.
Yes. Specialist home loan specialists are paid by the lender upon settlement — not by you. There is no cost to using a specialist. Our referrals go exclusively to ASIC-licenced specialist home loan specialists.