Guides

When refinancing a home loan is actually worth it

My renewal is coming up and my rate is going up. Is switching lenders worth the fees, or should I just stay?

Most people decide on the headline rate alone. The answer actually turns on whether the per-period saving repays the switch costs before you would otherwise have finished the loan, and whether the new loan keeps the features you rely on.

What switching a home loan actually costs

The new rate looks better, but what are the actual costs of switching, and how do I add them up before deciding?

Costs differ between lenders and between loans. Adding the known categories into one number is what turns a rate comparison into a real answer.

Break-even: how long until a refinance pays for itself

I have nine years left. Is there even enough time for a refinance to pay back its own costs?

The shorter the remaining term, the fewer payments the saving has to pay back the switch costs. Near the end of a loan, a lower rate can still be a bad deal.

Ask your current lender to match the rate first

Before I go elsewhere, can my current lender just drop the rate for me?

Retention offers are common, and comparing against your lender's best offer is the only fair baseline. Equity and credit history shape what they can offer.

Cashback and switching incentives: how to judge them honestly

I have been offered $2,000 cashback to switch. Is that actually a saving?

Cashback is a one-off payment against a permanent change in rate and fees. It has to be weighed against the interest over the whole term, not added to it.

How mortgage brokers are paid, and what to ask

My broker wants to charge me a comparison fee. Is that normal, and what should I ask?

How a broker is paid is part of judging the quality of a review. Asking about remuneration arrangements is a normal question, not an insult.

If you are struggling: hardship help before refinancing

I cannot afford the new rate. Is refinancing even the right conversation right now?

Hardship pathways, free financial counselling and AFCA complaints exist for exactly this situation. Switching a loan you cannot service can make things worse.

Offsets and redraw: what you lose or gain by switching

I have $60,000 sitting in an offset account. Does refinancing still work, and what happens to that money?

An offset reduces the interest-bearing balance day by day. If you lose it, or have to rebuild it after switching, the new loan can cost more than the headline rate suggests.

Refinancing when you are above 80% LVR

I am at 85% LVR with limited equity. Can I even refinance, and is staying put better?

Above 80% LVR the assessment, LMI and the comparison against staying put all change. Some owners are genuinely better off doing nothing this year.

Variable or fixed when you switch lenders

Should I take another fixed rate, or go variable now that the cash rate keeps moving?

Fixed and variable loans carry different risks. The cash rate target is the benchmark lenders price off, so knowing which part of your rate moves matters.

When lenders mortgage insurance (LMI) gets triggered

My loan is at 90% LVR. If I switch lenders, do I pay LMI again?

LVR and how it is assessed differ between staying and switching, and LMI is a genuine one-off cost that belongs in the same total as the other switch costs.

When your fixed rate expires and the rate jumps

My fixed rate ends in four months and reverts to a much higher variable rate. What should I do now?

A promotional or short fixed rate reversion is when the comparison becomes urgent — but acting early is not free either, because break costs may apply.