Lenders routinely price more competitively for new customers than for the loyal customers they already have. Refinancing is simply the process of checking whether that gap has opened up on your loan — and if so, moving to close it.
Signs it might be worth checking
- You haven't reviewed your rate in 2+ years
- Your fixed rate term is ending soon (you'll likely revert to a much higher variable rate automatically)
- Your property value has grown, which may improve your LVR and unlock a better rate tier
- Your circumstances have changed — income, other debts, or plans for the property
- You want to consolidate other debts or access equity for a renovation or purchase
What refinancing actually costs
There are a few costs to weigh against the savings: a discharge fee from your current lender (typically a few hundred dollars), potential government fees for registering a new mortgage, and if you're on a fixed rate, a break cost that can be substantial depending on how far through the fixed term you are and how rates have moved since you fixed. Any decent refinance comparison accounts for these, not just the headline rate difference.
Cashback offers
Many lenders offer cashback incentives (often $1,000–$3,000) for refinancing to them. These are genuine money, but they shouldn't be the deciding factor on their own — a slightly higher ongoing rate can easily cost more than the cashback saves within the first year or two.
If you're on a fixed rate, get the exact break cost figure from your current lender before committing to anything — it's calculated on the day and can move with interest rate changes, so an estimate from a few months ago isn't reliable.
Releasing equity through a refinance
Refinancing isn't only about rate — it's also a common way to access equity for a renovation, an investment property deposit, or debt consolidation. The lender will reassess your full financial position as part of the application, not just approve a top-up automatically.
How long does it take?
A straightforward refinance can settle in as little as 2–3 weeks once documentation is in, though it varies by lender and how complex your situation is. We manage the discharge coordination with your existing lender so the timing lines up and there's no gap in your loan.
Next step
Checking your current rate against our panel costs nothing and takes a few minutes on our end. If your current lender genuinely has the best deal for you, we'll tell you that directly.
Get a free rate comparison