Compare current home loan rates and switch to a flexible mortgage structure designed to lower your repayments and save on interest.
Refinancing simply means replacing your current mortgage with a new one that works better for your budget, whether that’s getting a lower interest rate, changing loan features, or lowering monthly repayments.
In fact, Australian Banking Association data shows that 640,137 home loans were refinanced in 2025 as everyday homeowners moved to secure a better deal.
With Loancalculator.com.au, you can quickly estimate repayments and compare options suited to your financial situation.
Refinancing your home loan allows you to adapt your mortgage to your current financial goals and reduce unnecessary interest expenses. Here are some common reasons homeowners consider refinancing:
Switching home loans can unlock significant long-term savings, but initial setup expenses must be factored into your decision. Weighing these upfront costs against your prospective monthly rate savings ensures the move works in your financial favour. Here is a clear breakdown of the expenses you might encounter:
Refinancing can help you manage your mortgage in a way that suits your current finances, but switching loans can also involve extra costs and changes. Here’s a simple look at the main benefits and things to consider:
| Advantages | Considerations |
|---|---|
| Lower interest: A more favourable rate may reduce the amount paid towards interest. | Switching expenses: Discharge, application, valuation and registration charges can reduce the financial benefit. |
| Reduced repayments: A suitable arrangement may bring down your regular payment amount. | Extended term: Stretching repayments over a longer period may increase the total interest paid. |
| Useful features: An offset account, redraw facility or flexible repayment option may provide greater convenience. | New assessment: The replacement lender will review your income, expenses, debts and other application details. |
| Debt consolidation: Eligible debts may be combined into the mortgage, subject to approval. | Feature changes: Moving away from your existing lender may mean losing facilities you currently rely on. |
| Equity access: Eligible homeowners may be able to release some property equity for an approved purpose. | Fixed-rate break costs: Ending a fixed arrangement before its agreed period may result in an additional charge. |
Knowing what to check at each stage can make refinancing easier and help you make a more informed choice.
Check your current interest rate, outstanding balance, remaining term, repayments and loan features.
Think about whether you want lower repayments, a different loan structure, new features or access to your home equity.
Look beyond the interest rate and compare fees, loan terms, repayment amounts and features.
Use our calculator to estimate repayments and consider any fees involved in changing loans.
Submit your application and documents. If approved, the new lender pays out your existing mortgage and sets up the new loan.
Refinancing can feel complicated. We make it easier to understand your options, compare potential costs and see how different loan rates could affect your repayments.
Find clear answers to common questions about refinancing, costs, eligibility and switching your home loan.
Having at least 20% equity generally means an LVR of 80% or less, which can help you avoid LMI. If you have less equity, LMI may apply depending on the lender and your circumstances.
Yes. You may be able to negotiate a different rate or switch to another loan product without changing lenders.
Refinancing makes sense when long-term interest savings outweigh initial setup costs – or when you need lower monthly repayments, debt consolidation, or features like an offset account.
A formal refinance application can result in a hard credit enquiry, which may affect your credit score. Multiple applications within a short period can have a greater impact.Â
Yes, though early exit penalties apply. Compare your current lender’s break cost against prospective interest savings to confirm a net financial gain before making the switch.
It’s a good idea to review your home loan regularly to see your rate and features remain competitive, especially when market conditions or your financial circumstances change.
Explore refinancing options, compare rates and loan features, and see how switching could affect your repayments.
