Reviewing or refinancing your loan.
The home loan market never stands still. Regularly reviewing your mortgage could save you thousands — especially when rates are moving.
Signs it might be time to refinance.
You don't have to wait for your fixed rate to expire. These are common triggers that prompt smart borrowers to review their loan.
Fixed rate expiring
Your fixed term is ending and you're about to roll onto a (usually higher) revert rate. The best time to act is 90 days before expiry.
Rate gap appearing
New customer rates are significantly lower than your current rate. If the gap is 0.5%+, it's worth running the numbers on a switch.
Property value risen
If your home has grown in value, your LVR may have dropped below 80% — unlocking better rates or removing LMI from your equation.
Income improved
A pay rise or career change means you may now qualify for products that weren't available to you when you first borrowed.
Life circumstances changed
Marriage, divorce, new baby, or a change in family size can all affect your optimal loan structure.
Want better features
You want an offset account, redraw facility, or the ability to make unlimited extra repayments that your current loan doesn't offer.
The refinancing process.
Refinancing is often simpler than people expect — especially with a broker managing the process. Here's what typically happens:
- Your broker assesses your current loan and compares it against the market
- A savings estimate is prepared including break costs, application fees, and rate savings
- Application is submitted to the new lender (or your existing lender for a rate negotiation)
- Property valuation is arranged (often free through the new lender)
- Discharge of old mortgage and settlement of new loan — typically 4–6 weeks
Common questions.
Every credit application results in a "hard enquiry" on your credit file, which can temporarily reduce your credit score by a small amount. However, if refinancing results in lower repayments and better management of your debt, the long-term effect on your credit profile is positive. Your broker can help you target the right lender first time to avoid multiple applications.
Break costs (also called early exit fees or economic costs) apply if you exit a fixed rate loan before the end of the fixed term. They can range from nothing to tens of thousands depending on how much rates have moved since you fixed. Variable rate loans generally have no break costs. Always ask your current lender for a break cost figure before proceeding.
Yes — and this is often the fastest option. Lenders would rather give you a small discount than lose you to a competitor. Your broker can do this on your behalf. If your current lender won't move, switching lenders is usually straightforward with a broker managing the process.
Find out if you could be saving.
A free rate review from us takes 20 minutes and could save you thousands each year.
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