Refinance
Refinancing guide: how to review your home loan
A direct refinancing guide for reviewing your current loan, checking costs, comparing options, and deciding whether to speak with a broker.
Key checks before you decide
Reviewed by emoney broker team. Updated 29 July 2026. Sources are listed below.
- Confirm the problem the refinance is meant to solve before comparing advertised rates.
- Compare repricing and structure changes with a full lender switch before lodging an application.
- Add switch costs, possible LMI, cashback conditions, and loan-term changes to the savings estimate.
- Prepare income, debt, property, and current-loan documents before a broker checks lender policy.
In this guide7 sections
Name the problem the refinance must solve
A refinance review should begin with the problem you want solved. The reason might be repayment pressure, a fixed rate endingRefinance / Review goalsFixed rate endingReview revert rates, timing, break-cost issues, split loans, and refinance options before the fixed period ends.Open page , a rate that no longer looks competitive, renovation plans, debt restructuringRefinance / Review goalsRestructure debtCompare repayment relief with long-term interest cost, behaviour risk, and lender policy before restructuring debt.Open page , equity use, or a structure that does not fit your next stage.
Refinancing is a tool, not the goal itself. The goal might be a calmer repayment, a cleaner loan structureHome Loans / Loan decisionsCompare loan typesCompare fixed, variable, split, repayment type, offset, redraw, LVR and deposit trade-offs before choosing a structure.Open page , a better way to use an offset accountHome Loans / Loan decisionsOffset vs redrawCompare how offset accounts and redraw may affect interest, access to cash, and loan structure decisions.Open page , a shorter remaining term, or a way to review several debts together before choosing a responsible path.
Starting with the reason also helps avoid a common mistake: comparing rates before checking whether the current loan can be repriced, whether the switching costsRefinance / Before changingRefinance costsCheck discharge fees, new-loan costs, settlement adjustments, break costs, and the time needed to recover switching costs.Open page make sense, and whether the new structure would actually improve the borrower's position. Write down the result the borrower needs and the date by which it matters.
Do the checks in that order: define the result, review the existing loan, compare the costs, then decide whether an application is warranted. Record why an option was ruled out so the comparison remains useful later.
- Lower or more stable repayments.
- Offset, redraw, split-loan, or repayment features that suit the way you use the loan.
- Debt restructuring or cash-out that needs careful cost and policy checking.
- A current loan that has not been reviewed since rates, income, or goals changed.
Review the current loan before chasing a rate
A low advertised rate can be useful, but it is only one part of the review. Check the current balance, rate type, repayment amount, fees, features, remaining loan term, fixed-rate status, and how long you expect to keep the property or loan structureHome Loans / Loan decisionsCompare loan typesCompare fixed, variable, split, repayment type, offset, redraw, LVR and deposit trade-offs before choosing a structure.Open page .
Your current loan is the comparison point. Without that baseline, a refinance offer can look attractive while quietly removing features, adding costs, extending the repayment term, or creating extra work that does not match the size of the benefit.
Bring the current loan statement, rate type, repayment, offsetHome Loans / Loan decisionsOffset vs redrawCompare how offset accounts and redraw may affect interest, access to cash, and loan structure decisions.Open page balance, package fees and years remaining. Those details let the review cover the whole structure instead of stopping at a headline rate.
- Interest rate, comparison rate, and repayment amount.
- Package, annual, discharge, valuation, application, and government charges.
- Offset, redraw, extra repayment, split, and portability features.
- Remaining loan term and how a new term would change total interest.
Broker note
Compare staying, repricing, switching, and refinancing
Refinancing is not the only possible outcome of a review. In some cases, asking the current lender for a better rate, changing the existing structure, or waiting until documents or equity improve can be more sensible than lodging a new application straight away.
The current lender may have a retention option. That does not mean it is always the right answer, but it should be compared with the cost, time, and assessment involved in switching lenders.
Work through the options in order. Check whether the current loan can be improved, then whether a structure change solves the issue. A full lender switch only needs to become the focus when those options do not meet the borrower goal.
If the borrower already has a reasonable offer from the current lender, the broker conversation can still test whether it is strong enough after fees, features, service, and future plans are considered.
- Ask the current lender whether repricing is available.
- Compare any retention offer against the cost of switching.
- Check whether a structure change would solve the problem without moving lenders.
- Review lender options only after the goal, costs, and documents are clear.
Watch out
Check costs, LMI, and the loan-term reset
A refinance can look better than it is if the estimate ignores switch costs or quietly resets the loan over a longer term. Check discharge feesRefinance / Before changingRefinance costsCheck discharge fees, new-loan costs, settlement adjustments, break costs, and the time needed to recover switching costs.Open page , application costs, valuation fees, settlement costs, package fees, break costs, and whether lender's mortgage insurance could apply.
A lower monthly repayment can come from a lower rate, but it can also come from stretching the debt over a longer period. That may help cash flow, but it can increase total interest if the borrower does not keep a similar repayment discipline.
LMIHome Loans / Loan decisionsLVR and LMI explainedUse this when a guide mentions loan-to-value ratio, lenders mortgage insurance, or low-deposit trade-offs.Open page is another hidden friction point. If the new loan amount is high compared with the property value, or if the property valuation comes in lower than expected, the cost of switching can change enough to affect the decision.
- Fixed loans can have break costs if changed before the fixed period ends.
- Higher LVR loans may face extra lender checks or LMI costs.
- A longer new loan term can reduce repayments while increasing total interest.
- Cashback offers need to be compared with rate, fees, conditions, and time in the loan.
Prepare documents before lodging anything
A lender still needs to verify your financial position for a refinance. Preparing documents early helps a broker check whether the refinance is realistic before an application is lodged.
Document readiness affects the lending strategy as well as the administration. If the documents show variable income, changed employment, increased debt or an unusual property situation, the broker can deal with that before a lender starts assessing the file.
Good preparation also avoids unnecessary applications. The numbers, documents, property and lender policy should point in the same direction before the borrower commits to a full refinance processRefinance / Before changingHow refinancing worksSee how review, current-lender checks, documents, lender assessment, settlement and stop paths fit together.Open page .
- ID, contact details, and current home-loan statements.
- Income evidence for PAYG, self-employed, casual, bonus, commission, or rental income.
- Bank statements, living expenses, credit limits, debts, and repayment conduct.
- Property, insurance, strata, rental, or valuation details where relevant.
Next step
Want a broker to check this against your situation?
Share the loan goal, timing and a few key details. An emoney broker can then pick up the enquiry with the relevant context.Start a refinance quick checkExample
Test the numbers before deciding to switch
Estimate the payback period for switching costsRefinance / Before changingRefinance costsCheck discharge fees, new-loan costs, settlement adjustments, break costs, and the time needed to recover switching costs.Open page and test repayment comfort at different rates. Neither result confirms lender policy, valuation, document fit or whether a longer term is masking the real cost.
Use calculator results as working notes for the broker conversation. Save the assumptions, including current balance, current repayment, proposed rate, known fees, and how long you expect to keep the property.
If the calculator only works when the savings are large or the costs are ignored, the review needs more caution. If the result still looks useful after conservative assumptions, the next step is to check lender policy and documents.
- Run your current repayment and a realistic comparison scenario.
- Add known switch costs before judging savings.
- Check the result over the time you expect to keep the loan.
- Ask a broker to review lender policy before relying on the estimate.
Understand what happens after approval
If a refinance application is assessed, approved, accepted, and settled, the new loan usually pays out the old one. Timing can depend on lender processing, valuation, documents, discharge authority, settlement coordination, and whether anything changes before settlement.
Settlement is the point where the old loan is paid out and the new loan starts, but there are still practical details to watch. Direct debits, salary payments, offset accountsHome Loans / Loan decisionsOffset vs redrawCompare how offset accounts and redraw may affect interest, access to cash, and loan structure decisions.Open page , insurance evidence, and old lender communications may need attention after the refinance settles.
A careful handover matters because the borrower can otherwise end up with confusion across two lenders. Keep checking statements and account instructions until the old loan is closed and the new repayment pattern is clear.
After settlement, the review should not disappear. The borrower should know the first repayment date, where spare cash should sit, which accounts are linked, and when the next loan check should happen.
- The existing lender usually needs discharge instructions.
- The new lender may need signed documents and insurance details.
- Settlement pays out the old loan if all requirements are met.
- Repayments, offset accounts, and direct debits may need updating after settlement.
Calculator next step
Refinance savings calculator
Compare the current loan with a new-rate scenario and see whether switching costs may be recovered.
- Best for
- Deciding whether a refinance is worth a broker review before starting lender work.
- What it calculates
- Current repayment, new repayment, estimated switching costs, monthly difference, and rough break-even.
A broker still needs to check discharge costs, valuation, features, cashback rules, income, documents, and lender policy.
Open Refinance savingsSources used
- ASIC MoneySmart choosing a home loan
ASIC MoneySmartofficial sourceChecked 29 July 2026
- ASIC MoneySmart switching home loans
ASIC MoneySmartofficial sourceChecked 29 July 2026
- ASIC MoneySmart using a mortgage broker
ASIC MoneySmartofficial sourceChecked 29 July 2026
- Reserve Bank of Australia cash rate target
Reserve Bank of Australiaofficial sourceChecked 29 July 2026
This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.
Next step
Want a broker to check what applies to you?
Share the goal, timing and current loan context in Quick Check so the broker knows what needs reviewing.
Related guides
Keep moving through the decision.
How refinancing works
Understand the refinance process before comparing rates, documents, valuation, lender policy, and switch costs.
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When should I refinance my home loan?
Common refinance triggers to check, including rate changes, fixed-rate expiry, equity use, repayment pressure, and life changes.
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Refinancing costs explained
A guide to common refinance costs such as discharge fees, application fees, valuation fees, government charges, break costs, and package fees.
Read guide