Key takeaways
- Refinancing replaces your loan with a new one — often for a lower rate or better features.
- Factor in discharge fees, break costs, and application fees.
- Start comparing 3–6 months before you want to switch.
Refinancing can cut your interest rate, unlock equity, or consolidate debt. But fees and break costs can eat savings if you do not run the numbers first.
On this page
Why homeowners refinance
Lower interest rate, better offset or features, debt consolidation, or accessing equity for renovations. Loyalty rarely gets the best rate — lenders often offer sharper pricing to new customers.
Costs to factor in
Discharge fee from old lender, break costs on fixed loans, application or valuation fees on new loan, and LMI if borrowing above 80% LVR without existing LMI portability.
- Break costs can be thousands on fixed loans
- Some lenders offer refinance cashback
- Compare total cost over the loan term, not just rate
Refinancing steps
Step-by-step
- 1Compare rates and features across lenders
- 2Calculate break-even including all fees
- 3Apply and provide income, asset, and liability documents
- 4New lender arranges valuation and settlement
- 5Old loan discharges on settlement day
When refinancing may not help
If break costs exceed savings, you are close to paying off the loan, or your financial situation has changed making approval unlikely.
Tip
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Quick answers for common questions about this topic.
How often can I refinance a home loan?
There is no fixed legal limit, but frequent refinancing can trigger repeated fees, credit checks, and admin effort. The move should produce clear net benefit after costs.
What costs should I check before refinancing?
Review discharge fees, fixed-loan break costs, application fees, valuation fees, government charges where applicable, and any annual package fees on both old and new loans.
Can refinancing be rejected even with good repayment history?
Yes. Approval depends on current serviceability assessment, policy settings, and valuation outcomes, not just past repayment behaviour.
When is the best time to start a refinance application?
Start a few weeks before you want the new loan active so there is time for approval, valuation, and settlement coordination without payment stress.