When Should You Refinance Your Home Loan?

Refinancing means replacing your current home loan with a new one — either with the same lender or a different one. It's one of the most impactful financial decisions you can make as a homeowner, potentially saving hundreds of dollars per month. But timing matters. Here's how to know when it's the right move.

5 clear signs you should refinance

• Your fixed rate period is ending — the rollover rate is almost always uncompetitive
• You haven't reviewed your rate in 2+ years — lenders reserve best rates for new customers
• Your property has increased in value — better LVR means better rates
• Your income or credit has improved since you took the loan out
• You want to access equity for renovations, investments, or debt consolidation

How much could you save?

The average Australian home loan holder is paying 0.5–0.8% more than the market's best available rate. On a $600,000 loan, that difference equates to $3,000–$4,800 per year — or $250–$400 every single month. Even after accounting for refinancing costs (usually $800–$1,500), most borrowers recover their costs within 4 months.

The refinancing process — step by step

• Step 1: Your broker identifies the best available rate for your loan size and LVR
• Step 2: Application submitted with supporting documents (payslips, bank statements, ID)
• Step 3: New lender assesses the application and orders a property valuation
• Step 4: Formal approval issued (usually 5–10 business days)
• Step 5: Loan documents signed and new loan settles — old lender paid out
• Step 6: You start paying less, from the very first repayment