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Home Loan Refinancing Interest Rates Guide

Seek help when comparing one of the most important home loan features.

While some Australians refinance to seek better features or customer service, many borrowers switch to seek a competitive rate in an effort to lower their mortgage repayments.

The interest rate attached to your refinanced mortgage can determine the amount you can save from switching and help you decide whether the savings outweigh the costs of refinancing.

When comparing the interest rate of a new mortgage, it's a good idea to speak with an experienced mortgage broker to help you make an informed choice and to ensure that you're getting the best deal possible.

Learn more about the costs of refinancing to decide whether it makes financial sense for you.

Refinance home loan rate comparison

Rates last updated June 24th, 2018
$
Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.69%
3.69%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more (new or refinance). Terms and conditions apply.
3.64%
3.66%
$0
$0 p.a.
80%
Pay no ongoing fees and enjoy a flexible repayment schedule, including the ability to make unlimited additional repayments without penalty.
3.69%
3.69%
$0
$0 p.a.
70%
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.69%
4.11%
$0
$395 p.a.
80%
Save on interest with a 100% offset account and save on other ME products with this package loan.
3.49%
4.49%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.
3.52%
3.53%
$0
$0 p.a.
80%
Go from application to approval in as little as 20 minutes with a variable rate loan from this innovative online lender. Add a 100% offset account for $10 a month.
3.89%
4.88%
$0
$395 p.a.
95%
Low deposit package loan with a range of discounts. Earn up to 500,000 Velocity Points to spend on flights, hotels and more.
3.73%
3.76%
$0
$0 p.a.
80%
This basic loan offers discounts for higher borrowing amounts and carries no ongoing fees.
3.64%
3.67%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.69%
3.94%
$0
$248 p.a.
70%
Get a sharp rate and a 100% offset account. Borrowers must have a 30% deposit.
3.64%
3.67%
$0
$0 p.a.
80%
A mortgage with a competitive variable rate, limited fees and plenty of flexibility.
3.54%
3.58%
$0
$0 p.a.
80%
Eligible borrowers can get $900 cashback on this loan with a 100% offset account and a redraw facility.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.64%
3.69%
$600
$0 p.a.
80%
A competitive variable rate for borrowers with a 20% deposit or more. Guarantor option available.
3.65%
3.66%
$0
$0 p.a.
80%
This special rate mortgage has no ongoing fees and offers flexible repayments. Save $595 in establishment fees before 30 June.
3.68%
3.83%
$0
$10 monthly ($120 p.a.)
80%
Get a 100% offset account to save on interest charges, and pay no application fee.
3.99%
4.85%
$0
$395 p.a.
95%
Competitive fixed rate package loan. For a limited time you can earn Velocity Points to spend on hotels and flights.
3.69%
3.74%
$600
$0 p.a.
80%
A great interest rate home loan offer with unlimited redraw and unlimited extra payments.
3.68%
4.00%
$0
$299 p.a.
80%
Get a 100% offset account and rate discounts for higher borrowing amounts.
3.79%
3.79%
$0
$0 p.a.
80%
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.62%
3.62%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more. Terms and conditions apply.
3.64%
3.64%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.64%
4.03%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.70%
4.13%
$0
$395 p.a.
90%
Package your loan with an eligible credit card for discounts on rates and fees, and get a 100% offset account.
3.77%
3.81%
$200
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility.
3.79%
3.83%
$600
$0 p.a.
80%
A low interest rate loan with limited fees and a redraw facility. Principal and interest repayments only.
3.68%
3.69%
$0
$0 p.a.
95%
This variable rate loan offers flexible repayments and a redraw facility. Available with a 5% deposit.
4.19%
3.78%
$0
$0 p.a.
80%
Fast, 100% online application process. Very limited fees. Optional offset account (with fee).
3.73%
3.76%
$0
$0 p.a.
80%
This basic loan offers discounts for higher borrowing amounts and carries no ongoing fees.
4.09%
4.12%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
3.99%
3.74%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
3.79%
3.79%
$0
$0 p.a.
80%
Get a 100% offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.68%
4.00%
$0
$299 p.a.
80%
Get a 100% offset account and rate discounts for higher borrowing amounts.
3.79%
3.84%
$600
$0 p.a.
90%
Buy your home with just a 10% deposit, few fees and a reasonable interest rate.
3.89%
3.92%
$0
$0 p.a.
80%
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.94%
3.71%
$0
$0 p.a.
80%
Apply online for this fixed rate, low-fee loan with redraw facilities and an optional offset account.
3.83%
4.49%
$0
$299 p.a.
95%
Owner-occupiers can enjoy a discounted fixed rate, a rate lock feature and the ability to make additional repayments.
3.69%
4.47%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150k receive a discounted rate. NSW, QLD and ACT residents only.
3.74%
3.74%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule.
3.78%
3.78%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.85%
4.05%
$0
$350 p.a.
95%
This high LVR fixed rate loan allows you to borrow up to 95% of the value of the property you're buying.
4.09%
4.11%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Points on your mortgage (for a limited time, subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
4.09%
4.12%
$0
$0 p.a.
95%
Buy a home with just a 5% deposit and get flexible repayment options and a redraw facility.
4.14%
4.81%
$0
$0 p.a.
80%
Pay no application fees and access a fee-free redraw facility with this fixed rate loan.
3.99%
4.03%
$0
$0 p.a.
95%
Buy a home with just a 5% deposit and pay no application or ongoing fees.
3.59%
4.42%
$600
$0 p.a.
95%
Get a 1% discount for the first two years of your loan and pay no application or ongoing fees.
3.68%
3.69%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Lock in a fixed interest rate term for repayment certainty.
3.89%
4.97%
$0
$395 p.a.
95%
Get discounts on a range of Commonwealth Bank products and enjoy the option of fee-free extra repayments during the fixed term.
3.89%
4.96%
$0
$395 p.a.
95%
Switch to this loan and can get $1,500 cashback. Conditions apply. Package your home loan with a Qantas rewards earning Amplify credit card.

Compare up to 4 providers

What is a home loan refinancing interest rate?

This is the interest rate of the new home loan that you switch to. It is usually either fixed or variable and it is not to be confused with the comparison rate.

The interest rate indicates what your mortgage repayments will be and the comparison rate takes into account the fees and charges of the loan, as well as your repayments.

As a result, the comparison rate can be useful when comparing different home loans as it reflects the true cost of the loan.

What are the types of interest rates you can refinance to?

Home loan rates that you can refinance vary according to the type of mortgage you are applying for, but the most common reason a home buyer refinances is to take advantage of a lower interest rate and this can be obtained by:

  • Replacing a fixed rate loan with a variable rate loan in times of falling interest rates.
  • Refinancing to a shorter loan term e.g 25 years vs 30 years.
  • Changing from a variable rate loan to a fixed rate loan if rates are rising.
  • To reduce general debt repayment costs by using the equity amount in the property to pay out all existing debt and paying off the new mortgage with a lower interest rate than before.
  • To free up cash or equity to pay off other debts such as credit cards, personal loans and car loans.

How does refinancing work?

refinance interest rateRefinancing involves replacing an existing mortgage with another either with your existing lender or with a new lender. When refinancing, many borrowers simply negotiate a better rate with their existing lender while some will approach a new lender.

Borrowers are often motivated to refinance in order to obtain a lower rate or fees in order to minimise their periodic repayments or account-keeping fees. The new interest rate that you receive with the home loan that you switched to is the refinance rate which is an indicator of your home loan repayments.

Does a lower rate make a difference?

Opting for an interest rate that's even just 0.5% lower than your existing rate could lead to significant cost savings over your mortgage term.

For instance, if you took out an average mortgage of $471,000 at an average standard variable rate of 5.35%, and negotiated for a lower rate of 4.85%, you could save approximately $144 each month or $1,700 each year.

This would amount to a staggering saving of $52,000 over the life of your loan.

If you put the $144 savings back into your new mortgage in additional repayments, you would save almost $56,000 in interest and you would pay off your loan 3 years and 5 months sooner.

Use our calculator below to determine what a different interest rate will do to your repayments.

Pros and cons of refinancing to a better interest rate

Pros

  • Lower repayments. As illustrated above, a lower rate (even 0.5% lower than your current rate) can result in significant cost savings via lower monthly repayments.
  • Shorter loan term. Refinancing to a mortgage with a lower interest rate can also enable you to pay off your home loan sooner if you use the savings to make additional repayments.

Cons

  • Fees. Refinancing can be a costly process as you'll need to pay discharge or transfer fees to exit your current home loan as well as upfront application fees charged by the new lender. This is why it's important to consult a licensed mortgage broker to help you crunch the numbers so you can ensure that refinancing will benefit you financially. You can use our switching cost calculator to estimate your refinancing costs.

Things to avoid when it comes to refinancing a home loan

  • Ignoring personal situation. Be clear about what your plans are for the near future. For example, if you plan to move in two years it might not be a good choice to fix a competitive loan for three years. Leaving this type of loan early will come with expensive break fees.
  • Not crunching the numbers. Refinancing to a new lender will usually come with a discharge fee from your current lender and a range of upfront fees from your new lender, so be sure that the savings from the lower interest rate will outweigh these switching costs. Alternatively, wait until there's a home loan with a cashback promotion that you can use to reduce the upfront costs of switching.
  • Not seeking advice. If you're thinking of refinancing, it's a good idea to speak with an accountant and a mortgage broker to help you through the process. You need to make sure that refinancing to a new mortgage will lead to significant cost savings and that the new mortgage type will suit your future lifestyle.
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Refinancing to a new home loan with a competitive rate is a sound way to lower your repayments and pay off your mortgage sooner, just make sure you carefully consider the costs involved by speaking with the experts.

Marc Terrano

Marc Terrano is a content marketer manager at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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Important Information*
loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64%p.a.
comp rate of 3.66%p.a.

UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupied Variable P&I Rate — borrowing $700,000 or more

Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.

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