Before changing loans
Refinancing works best when the process starts with the current loan, not the new lender form. The first decision is whether to reprice, switch, restructure, wait or stay put.
Refinancing means replacing, restructuring or repricing the current home loan. It can be a new lender refinance or a same-lender product switch, and the useful process checks costs, features, remaining term, documents, lender assessment and the option to stay put before an application starts.
The order can change by lender and borrower situation, but these are the checks most borrowers should expect. Each step has three sides: what the borrower provides, what a broker can check, and what the lender may still need to assess.
Share balance, rate, repayment, term, features, fixed expiry and the reason for reviewing.
Checks whether staying, repricing, restructuring or comparing lenders is the sensible next step.
Current lender may provide payout figures, product-switch options or retention pricing.
List known fees, likely time in the property, future plans and must-have features.
Tests switch costs, break-even timing, LMI risk, term reset and feature trade-offs.
Can quote discharge fees, break costs, product fees and assessment requirements.
Decide what matters: rate, repayment, features, equity access, debt restructuring or certainty.
Compares rate, comparison rate, fees, features, lender policy and document fit.
Sets pricing, policy, LVR, valuation and product conditions.
Provide ID, income evidence, statements, debt details and property information through approved channels.
Checks the story is complete before an application is submitted.
Requests evidence based on borrower type, income, debts and loan purpose.
Reviews declarations and answers follow-up questions.
Submits the application only if the reviewed path makes sense.
Assesses credit, servicing, security, valuation, LVR and conditions.
Reviews the offer, repayments, fees, features and conditions before accepting.
Explains lender conditions and what still has to happen before settlement.
Issues offer documents and conditions if lender policy is met.
Updates repayments, direct debits, offsets and any old loan links after settlement.
Tracks settlement and confirms the new loan has started as expected.
Pays out the old loan, registers the new security and starts the new repayment cycle.
Application, approval and settlement come later. A refinance review first compares the current loan with the change you want, then considers repricing, switching, restructuring, waiting or staying put.
A reprice, retention offer or same-lender product switch may solve the issue without paying to leave.
A switch can make sense when the benefit survives fees, term, features, documents, valuation and timing.
High break costs, short holding periods, thin equity, missing documents or life changes can make waiting better.
A refinance still needs lender assessment. The exact documents can vary by lender, borrower type, loan purpose and property position.
Payslips, tax evidence, business income or other income evidence may be checked depending on borrower type.
Living expenses, credit cards, personal loans, car loans, buy-now-pay-later and other commitments can affect servicing.
A valuation can change usable equity, LVR, pricing, LMI risk and available lender options.
The review may be assessed differently if you are only switching, borrowing more, consolidating debt or funding a renovation.
Before changing loans
A lower advertised rate does not automatically mean a better outcome. MoneySmart frames switching as a benefits-versus-costs decision, and the current lender should be part of the comparison before you pay to leave.
If switch costs are high or you may sell soon, the break-even point may not make sense.
Starting a new longer term can reduce the monthly repayment while increasing total interest over time.
Offset, redraw, extra repayment flexibility, package benefits or split-loan flexibility can matter as much as rate.
Leaving a fixed loan early can involve break costs, so the lender should quote the cost before a decision is made.
Calculators provide estimates only. Use them to frame the refinance question, then check lender quotes, valuation, policy, fees, documents and the current lender path before acting.
Common questions
Timing depends on the lender, valuation, documents, current lender discharge process and settlement requirements. Treat any timeframe as an estimate until the file is assessed.
Not always. Sometimes the review is with the current lender, sometimes it involves comparing other lenders, and sometimes staying put is the better starting point.
Possibly, but borrowing more changes the assessment. Lender policy, property value, LVR, income, debts, repayment impact and loan purpose need to be checked.
It can be part of the same review. A same-lender product switch or reprice may change the loan without a full external switch, but fees, features, rate, term and suitability still need to be checked.
Lenders may assess income, expenses, debts, repayment history, credit conduct, property value, LVR, loan purpose and documents. The exact assessment depends on the lender and scenario.
The process can stop if the current lender reprices, switch costs outweigh the benefit, documents are not ready, break costs are too high, or staying put is the better outcome.
If a new lender refinance is approved and accepted, the new loan is used to pay out the old loan at settlement. Direct debits, offset accounts and repayment timing may need to be updated.
A broker can help compare options, explain how loans work and what they cost, apply for a loan and manage the process through settlement. Licensed mortgage brokers owe you a best interests duty when suggesting a loan, and you can ask how they are paid.
General information only. It does not account for your personal circumstances. Guidance on this page was checked against official Australian sources:
Refinance process review
Share your current loan, goal, likely costs and timing through Quick Check so a broker can pick up the process review. General information and intake only. Any lending is subject to lender assessment.
