Refinancing - Key Steps
  • The first step when refinancing is to check the costs by checking in with your current lender.
  • Depending on the terms and conditions of your current home loan, you may encounter discharge fees for a variable rate loan or break costs for a fixed rate loan.
  • The next step is to compare home loan products to establish if you can find a better deal than your existing mortgage.
  • Once you have found a deal that suits your financial position, it's a matter of engaging with that lender to get refinancing the wheels in motion.
  • Once approved, your new lender will send a Letter of Offer and arrange settlement with your current mortgage provider.

Looking for a better home loan deal? As a borrower, you have the power to do something about it. By refinancing your home loan to a new loan with a lower interest rate or better features, you could save yourself thousands of dollars over the course of your loan period.

Even though refinancing may involve jumping through a few hoops, don’t let this put you off. As long as you do your research and due-diligence, the whole process will be much more straightforward.

Switching home loans with certain providers can be completed online in as little as 10 minutes and settled within days. Once you’ve crunched the numbers and are ready to switch, be sure to have all the necessary documents ready such as payslips, loan statements, ID, etc. to make life that little bit easier. Here’s a step by step guide to refinancing your home loan.


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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUP TO $4K CASHBACK
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

1. Check your current interest rate and crunch the numbers

As a first step towards refinancing, check to ensure you know what your latest interest rate is. Your interest rate should be listed on your home loan statement. If your lender has online banking, you should be able to use it to find your current rate in your account information. You also want to take into account that LMI isn’t transferable when refinancing your home loan, meaning if you have a loan-to-value ratio greater than 80%, you’ll likely have to pay LMI all over again with the new lender. Additionally, you want to find out about any ongoing or annual fees you’re paying as well. These will factor into your calculations when you work out how to get yourself a better deal.

2. Ask your current lender for a better deal

Before you go and find out what’s on offer elsewhere call your existing lender and ask them for a better rate. Tell them that you’re thinking of refinancing, and why. Financial institutions often have special incentives and deals which they don’t publicise too much but use to persuade existing customers to stay with them. In fact, your lender has entire teams devoted solely to keeping you as a customer. However, if you’re still not happy with what they have to offer, then ask them what their loan discharge procedures are to get an idea whether there are any costs involved.

3. Compare home loan products

This is where you take all the information you’ve collected so you can start comparing products. The product table above offers some of the most competitive home loan rates on the market. The first thing you will probably notice is that there will be lenders with cheaper rates than you are currently paying; however it’s important to compare home loans beyond simply the headline rate. Think back to why you’re deciding to refinance and also look into the fees, features, and flexibility involved with each product. From there, you can narrow down your search and hopefully choose the best choice for you.

4. Apply to refinance

Now that you’ve found the home loan that’s going to give you the best deal, the features you want and the biggest savings, it’s time to apply. The application process can vary between lenders, with some now operating entirely online, while others will still use paper forms and require you to mail or scan the documents. Whichever method, it’s handy to have a few details ready:

  • Personal information e.g. name, ID, etc.
  • Financial information e.g. income, etc.
  • Loan information e.g. details of current loan

Moving from application to approval can take anywhere from one to eight days, with some online providers approving in a matter of hours.

5. Get finance approval

If you’re refinancing with a new lender, they will most likely arrange to value your property. This might not always align with what you paid for it, making it more important to have built up equity before refinancing. After this occurs, your lender will advise you in writing of your loan approval and will also send through a mortgage contract package

6. Settlement

Your new lender will coordinate with your old lender to discharge you from your old home loan. They’ll work together to exchange all the necessary documentation. This includes the exchange of titles and the bank’s registration of the mortgage over your property.