How to Find the Best Refinancing Deals*

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The secret to getting a good deal when refinancing your home loan

refinance home loanLike any other financial decision you make, the decision to refinance is one that needs careful thought, research and strategy. As it can be a costly process, you need to ensure that refinancing your home loan will benefit you financially.

This is why it's important to research available products on the market, speak with professionals and crunch the numbers to ensure that the refinanced mortgage will lead to cost savings.

It's also worth noting that many customers refinance with their existing lender if it's simply a lower rate that they're seeking. However, if you're after different features or better customer service, then it may be time to start comparing new lenders on the market.

The term ‘the best refinance deal’ is relative. There are many factors you should consider before switching such as the interest rate, mortgage features and customer service offered by the refinance lender.

Here's some advice about how to make an informed decision when refinancing, and how to get a good deal that satisfies your lifestyle and financial needs.


What's the ‘best’ refinance deal*?

The best refinance deal is one that suits your home loan needs while not raising your expenses. Ideally, a good refinance deal will lower your ongoing expenses and periodic repayments by offering a lower interest rate and more suitable features, such as an offset account and a redraw.

As a result, the best refinance deal depends on your unique situation and needs, so it's best to speak to a mortgage broker to help you find a suitable mortgage.

Before doing your research, you should ask yourself the following:

  • What type of loan do I want? You might want to switch from a variable rate to a fixed rate or vice versa, or you might want to refinance to a home loan which allows you to make unlimited additional repayments on your home loan when you have extra cash. During this stage, you should think about your lifestyle and how this may influence the type of loan that you need. For instance, if you're thinking of starting a family in the near future, you may want to consider a fixed-rate or split-rate loan to provide you with greater certainty of what your repayments will be. Ideally, you should have a list of features and specifications you want in your home loan before starting a comparison.
  • What are the savings? Savings are one of the most important considerations when refinancing. While it’s good to opt for lower interest rates, make sure that the cost savings outweigh the costs of refinancing or switching lenders. Ask your existing lender for details about any discharge fees or government charges that may apply when you exit your current home loan and consider any upfront costs charged by the new lender. Use our refinancing cost calculator to estimate your switching costs.
  • What is the loan term? The length of the loan term can determine the cost savings that result from the refinance. For instance, if you have your mortgage refinanced after paying it off for 15 years and have the balance spread out over another 30 year period, you may actually pay more over the total 45-year duration despite the lower interest rate.

How to compare the best refinance deals*

refinance home loan

  • Interest rates. The interest rate provided by different lenders will be high in your list of considerations when looking for the best refinance deal. Decide on whether you want a fixed, variable or split rate and if you're selecting a fixed rate, decide how long you want to fix for. Always consider the comparison rate and its impact on your repayments, as this will factor in important fees you'll have to pay.
  • Fees. Compare the fees that apply to different lenders. Some of the common home loan fees include application or establishment fees, valuation fees, ongoing fees, monthly and annual fees and others upfront and ongoing costs. Take your time and compare the fees that apply to your new loan and their long-term impact on your mortgage costs.
  • Features. Consider the features that you'd like from your new home loan and how these will match the purpose of your refinance. For instance, if you're looking to minimise your account-keeping costs you may want to compare home loans with no ongoing fees or if you've received a pay rise you may want to think about opting for a mortgage that allows you make unlimited extra repayments without penalty.
  • Customer service. Another important feature to consider when refinancing is the service that you'll receive from the new lender. Are you satisfied with the product information that they've offered you? Have they clearly discussed the product fees? Is there a direct debit or BPAY option to help you manage your repayments? Are there any package discounts available?

Refinancing home loans comparison

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% p.a.
Offset account
Split account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Rates (p.a) Application Fee Ongoing Fees Maximum Insured LVR Amount Saved
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate, P&I)
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.74% 4.85% Interest rate:
3.74%


Comp rate:
4.85%
$0 $0 p.a. 95% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A basic home loan with a competitive rate and low fees.
3.64% 3.66% Interest rate:
3.64%


Comp rate:
3.66%
$0 $0 p.a. 80% Go to site More info
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.85% 3.86% Interest rate:
3.85%


Comp rate:
3.86%
$0 $0 p.a. 90% Go to site More info
Tic:Toc Live in Loan Variable Rate
A competitive variable rate product with low fees offered by a 100% online lender.
3.68% 3.69% Interest rate:
3.68%


Comp rate:
3.69%
$0 $0 p.a. 80% Go to site More info
Reduce Home Loans Rate Buster 100% Offset Variable Home Loan - Up to $750k (LVR <=80%)
Borrow up to 80% LVR with no ongoing fees and a 100% offset account.
3.54% 3.54% Interest rate:
3.54%


Comp rate:
3.54%
$440 $0 p.a. 80% Enquire now More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
Take advantage of a 100% offset account along with no annual or application fees.
3.72% 3.74% Interest rate:
3.72%


Comp rate:
3.74%
$0 $0 p.a. 80% Go to site More info
IMB Budget Home Loan - Special LVR <=80% (Owner Occupier and Principal & Interest only)
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.79% 3.84% Interest rate:
3.79%


Comp rate:
3.84%
$445 $0 p.a. 80% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
Pay no ongoing fees on a competitive variable rate home loan.
3.86% 3.87% Interest rate:
3.86%


Comp rate:
3.87%
$0 $0 p.a. 80% Go to site More info
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)
Combine a low variable interest rate and free redraw with no application or ongoing fees.
3.74% 3.74% Interest rate:
3.74%


Comp rate:
3.74%
$0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.69% 4.86% Interest rate:
3.69%


Comp rate:
4.86%
$0 $395 p.a. 90% Go to site More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
3.80% 3.81% Interest rate:
3.80%


Comp rate:
3.81%
$0 $0 p.a. 95% Enquire now More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
Get a competitive rate without features you may not use.
3.97% 4.02% Interest rate:
3.97%


Comp rate:
4.02%
$445 $0 p.a. 90% Go to site More info
Bank Australia Basic Home Loan - Special LVR <70% (Owner Occupier)
A special variable rate home loan with no application or ongoing fees.
3.74% 3.75% Interest rate:
3.74%


Comp rate:
3.75%
$0 $0 p.a. 70% Go to site More info
3.79% 4.07% Interest rate:
3.79%


Comp rate:
4.07%
$500 $0 p.a. 95% Go to site More info
Heritage Bank Discount Variable Home Loan - Special Rate Offer (Owner Occupier) New Customers Only
A great interest rate home loan offer with unlimited redraw and unlimited extra payments.
3.99% 4.04% Interest rate:
3.99%


Comp rate:
4.04%
$600 $0 p.a. 90% Go to site More info
3.78% 3.79% Interest rate:
3.78%


Comp rate:
3.79%
$600 $0 p.a. 90% Enquire now More info
Macquarie Bank Basic Home Loan - LVR ≤ 80% ($750,000+ Owner Occupier, P&I)
Minimum loan amount for this basic home loan is $750001.
3.79% 3.79% Interest rate:
3.79%


Comp rate:
3.79%
$0 $0 p.a. 80% Enquire now More info
Westpac Flexi First Option Home Loan - 2 Years Introductory Special Offer (New Owner Occupier, P&I)
This competitive introductory rate is a limited time offer for new owner-occupiers
3.91% 4.42% Interest rate:
3.91%


Comp rate:
4.42%
$0 $0 p.a. 95% Enquire now More info
ME Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier, P&I)
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.74% 4.81% Interest rate:
3.74%


Comp rate:
4.81%
$0 $0 p.a. 95% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.88% 4.89% Interest rate:
3.88%


Comp rate:
4.89%
$0 $395 p.a. 95% Go to site More info
Community First Fixed Home Loan - 3 Years Fixed Owner Occupier special offer (New Loans only)
A limited time fixed rate special with no monthly or annual fees plus a 100% offset account.
3.89% 4.97% Interest rate:
3.89%


Comp rate:
4.97%
$600 $0 p.a. 95% Go to site More info
Bankwest Equaliser Home Loan - LVR ≤80% (Owner Occupier, P&I & $200k+) new customers only
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.72% 4.19% Interest rate:
3.72%


Comp rate:
4.19%
$0 $0 p.a. 80% Go to site More info
Finsure Home Loan Deal
Enjoy a low variable rate with no application fee.
3.69% 4.03% Interest rate:
3.69%


Comp rate:
4.03%
$0 $299 p.a. 80% Enquire now More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74% 4.12% Interest rate:
3.74%


Comp rate:
4.12%
$0 $395 p.a. 80% Go to site More info
P&N Bank & Home Loan & Bag
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.99% 4.02% Interest rate:
3.99%


Comp rate:
4.02%
$395 $0 p.a. 80% Go to site More info
Select Encompass Credit Union Special Offer 2 Year Fixed Rate Home Loan
A fixed rate loan with limited fees and a competitive interest rate.
3.74% 4.15% Interest rate:
3.74%


Comp rate:
4.15%
$0 $0 p.a. 95% Go to site More info
Connective Smart Options Basic Home Loan - LVR ≤ 70% (Owner Occupier, P&I)
A variable home loan with $0 annual or monthly fees.
3.74% 3.74% Interest rate:
3.74%


Comp rate:
3.74%
$363 $0 p.a. 70% Enquire now More info
Beyond Bank Low Rate Special Home Loan - LVR <70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.83% 3.83% Interest rate:
3.83%


Comp rate:
3.83%
$0 $0 p.a. 70% Go to site More info
QT Mutual Bank Mortgage Saver Home Loan
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.95% 3.95% Interest rate:
3.95%


Comp rate:
3.95%
$0 $0 p.a. 95% Go to site More info
loans.com.au Essentials - Smart Loan Package P&I
Package your owner-occupied loan with your investment loan and enjoy low rates for both.
3.89% 3.91% Interest rate:
3.89%


Comp rate:
3.91%
$0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate, P&I)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.79% 4.75% Interest rate:
3.79%


Comp rate:
4.75%
$0 $0 p.a. 95% Go to site More info
ME Basic Home Loan - LVR <=80% (Owner Occupier, P&I)
A low variable rate loan with no application or ongoing fees.
4.09% 4.11% Interest rate:
4.09%


Comp rate:
4.11%
$0 $0 p.a. 80% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.17% 4.21% Interest rate:
4.17%


Comp rate:
4.21%
$600 $0 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
100% offset account, unrestricted additional repayments and no monthly account keeping fees
4.19% 4.19% Interest rate:
4.19%


Comp rate:
4.19%
$0 $0 p.a. 90% Go to site More info
ME Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier, P&I)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.99% 4.77% Interest rate:
3.99%


Comp rate:
4.77%
$0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate, P&I)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
3.94% 4.88% Interest rate:
3.94%


Comp rate:
4.88%
$0 $0 p.a. 95% Go to site More info
ANZ Simplicity PLUS Home Loan - Special Offer (Owner Occupier, P&I)
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
4.03% 4.07% Interest rate:
4.03%


Comp rate:
4.07%
$0 $0 p.a. 95% Enquire now More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Standard Rate, P&I)
Investors can take advantage of a short term fixed rate with no application or ongoing fees.
3.94% 4.98% Interest rate:
3.94%


Comp rate:
4.98%
$0 $0 p.a. 95% Go to site More info
Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier, P&I)
Lock in a fixed interest rate term for repayment certainty.
4.39% 5.42% Interest rate:
4.39%


Comp rate:
5.42%
$300 $10 monthly ($120 p.a.) 95% Enquire now More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 4.99% Interest rate:
3.99%


Comp rate:
4.99%
$0 $395 p.a. 95% Enquire now More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99% 4.98% Interest rate:
3.99%


Comp rate:
4.98%
$0 $395 p.a. 95% Enquire now More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
Lock in a discounted fixed rate with a low service fee.
3.99% 4.90% Interest rate:
3.99%


Comp rate:
4.90%
$0 $395 p.a. 95% Enquire now More info
Virgin Reward Me Variable Home Loan - LVR <= 80% ($750k+ Owner Occupier, P&I)
Earn Velocity points on a competitive variable rate home loan with flexible features.
3.79% 3.92% Interest rate:
3.79%


Comp rate:
3.92%
$0 $10 monthly ($120 p.a.) 80% Enquire now More info

How to get a good refinance deal

Title
  • Speak to your current lender: Ask your lender if this is the best deal you can get. Lenders will usually have a number of incentives to retain customers thinking of refinancing, including discounted interest rates and waived fees.
  • Shop around: If your current lender isn't willing to negotiate or you'd simply like to refinance with a new lender, then you need to shop around. There can be a big difference in the rates, terms and features offered on different loans, which makes it important for you to compare different products before making a decision. Rates may vary by a very small percentage but even a 0.5% rate difference could translate into thousands of dollars saved over the loan term.
  • Check eligibility: When comparing different home loans, check out the eligibility requirements the lender has set before you can apply. The eligibility requirements are usually similar to those that you went through when you first applied for your mortgage. Lenders will consider the value of your property, your income, assets, loan amount and much more. Your loan-to-value ratio (LVR ratio) needs to be within their guidelines.
  • Get professional advice: You might need to speak to a mortgage broker to get personalized advice on what your best options are. This is especially important if your do not have the time to conduct proper comparisons yourself. A broker will compare loans from a panel of lenders to find the right one for you and they can even negotiate for a better rate or terms on your behalf.
  • Calculate the costs: You will need to calculate the expected costs with a refinancing calculator. This will help you identify the gains that you will make over the term of the loan. Remember to factor in discharge fees charged by your current lender as well as upfront fees applicable with your new mortgage.
  • Check your credit history: Review your credit file to ensure that it’s in good standing as it will help support your refinance negotiations. Also, keep in mind that applying for several refinance loans at one time can put enquiries against your credit file so it's best to do your research and only apply with lenders that you think are suitable. This will ensure that your credit history remains in tact.

Next steps

Switching home loans could help you save a lot on your mortgage repayments over the life of your loan. If you decide to move to a new lender, make sure that you make the best choice by conducting sound comparisons of the costs involved.

Have clear goals from the outset so you know exactly why you're refinancing. Whether you're looking to improve your home, free up some funds or save on your repayments, it helps to seek advice from an experienced mortgage broker so that you fully understand your options.

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Compare refinancing home loans today

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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IMB Budget Home Loan - LVR <=90% (Owner Occupier)

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2 Responses

  1. Default Gravatar
    PaulineFebruary 8, 2015

    I am wanting to refinance my loan I am owing $135000
    I want the best interest rate at the moment mine is 5.20%
    Want less
    Regards
    pauline

    • Staff
      ShirleyFebruary 9, 2015Staff

      Hi Pauline,

      Thanks for your question.

      There are a number of loans in our comparison that meet this requirement. Please refer to our blue comparison table above this page, if you click on ‘interest rate (p.a.)’ it will automatically sort the rates in ascending order.

      Cheers,
      Shirley

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