Refinancing means switching your home loan — usually to a different lender, sometimes to a different loan with your current one. Done well, it can save you money, free up features you actually want, or simplify debts that have crept up over the years. Done badly, it costs more than it saves.
We help you work out which one it’s going to be — before you sign anything.
Why people refinance
There’s usually a trigger. The common ones:
- A better rate. The loan you took out a few years ago may no longer be competitive. Lenders don’t always pass improvements on to existing customers.
- Better features. An offset account, a redraw facility, the ability to make extra repayments, a split between fixed and variable — these matter more as your life changes.
- Debt consolidation. Rolling personal loans, credit cards or car finance into your home loan can drop your monthly repayments significantly. (There’s a catch though — see below.)
- Accessing equity. Using the value you’ve built up to fund a renovation, an investment property, or another big purchase.
- Life changes. Divorce, a new partner, going self-employed, or just wanting to take someone off the title.
How the process works
- We review your current loan, your goals, and your numbers.
- We compare options across 90+ lenders and bring you a shortlist.
- You pick the one that fits. We handle the application, the paperwork, and the lender.
- The new lender pays out your old loan. You start fresh.
From start to finish it usually takes a few weeks. Most of the heavy lifting is ours.
What to watch for
Refinancing isn’t free, and it isn’t always worth it. Things to weigh up:
- Break costs — if you’re on a fixed rate, breaking it early can come with a hefty fee. Sometimes it still makes sense; sometimes it really doesn’t.
- Discharge and application fees — your current lender may charge you to leave, and the new lender may charge you to arrive.
- LMI again — if your loan-to-value ratio has crept up, you could be stung for lenders’ mortgage insurance a second time.
- Long-term cost of debt consolidation — moving a 5-year car loan into a 30-year home loan drops the monthly payment but can cost more in total interest. We’ll show you both.
When refinancing makes sense
As a rough guide, refinancing is worth a serious look when the ongoing savings cover the switch costs within a couple of years, when your situation has changed, or when your current loan no longer does what you need. It’s not worth it if you’re planning to sell in the next 12 months, or if the fees eat the savings.
“Refinance for a reason — not just because the neighbour did.”
Want to see the numbers side by side? Try our loan comparison calculator first, then have a chat with James about what’s actually on offer.
Estimates and general information only. Talk to James for advice tailored to your situation.