Refinance home loans guide February 2020

Switching to a better mortgage could save you thousands. Find out how.

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Refinancing Home Loan Offer

UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

2.84 % p.a.

variable rate

2.84 % p.a.

comparison rate

Refinancing Home Loan Offer

Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.

  • Interest rate of 2.84% p.a.
  • Comparison rate of 2.84% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $200,000
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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

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Rates last updated February 27th, 2020
$
% p.a.
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Maximum Insured LVR Amount Saved Short Description
Athena Variable Home Loan - Owner Occupier, P&I
2.84%
2.80%
$0
$0 p.a.
80%
Owner occupiers can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$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.
Bank of Melbourne Basic Home Loan - Special Offer (Owner Occupiers, P&I) LVR above 60% up to 80%
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
BankSA Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
90%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
loans.com.au Smart Home Loan - LVR <=75% (Owner Occupier, P&I)
2.78%
2.80%
$0
$0 p.a.
75%
A competitive interest rate for borrowers with 25% deposits saved. Unlimited redraw and extra repayments, plus no ongoing fees.
Bankwest Complete Home Loan Package Variable - $200k+ LVR <=80% (Owner Occupier, P&I)
3.05%
3.50%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
loans.com.au Smart Home Loan - (Owner Occupier, P&I)
2.88%
2.90%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
St.George Fixed Rate Advantage Package - 2 Year Fixed Rate LVR 60% to 80% (Owner Occupier, P&I)
2.89%
3.77%
$0
$395 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Well Home Loans Balanced Variable - Special (Owner occupier, P&I)
2.72%
2.75%
$250
$0 p.a.
80%
A very low interest rate for home buyers with 20% deposits saved. Add an offset account for a small fee.
Bank of Melbourne Advantage Package Fixed Home Loan - 2 Year Fixed (Owner Occupier, P&I) LVR above 60% up to 80% New customers
2.89%
3.77%
$0
$395 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Macquarie Bank Basic Home Loan - LVR up to 70% (Owner Occupier, P&I)
3.09%
3.09%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
Virgin Reward Me Variable Home Loan - LVR <= 60% ($750k+ Owner Occupier, P&I)
2.99%
3.16%
$300
$10 monthly ($120 p.a.)
60%
A variable rate home loan with no application fees.
BankSA Advantage Package Fixed Home Loan - 2 Year Fixed (Owner Occupier, P&I)
2.89%
3.81%
$0
$395 p.a.
80%
Refinancers borrowing $250,000 or more can get a $4,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
3.33%
3.34%
$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.
Homestar Star Essentials Home Loan - $150K to $850K LVR up to 80% (Owner Occupier, P&I)
2.74%
2.77%
$0
$0 p.a.
80%
A low rate variable mortgage with minimal fees and redraw facility. Requires a 20% deposit. For every complete application Homestar will donate $250 to select charities to help bushfire victims.
Greater Bank Great Rate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)
2.79%
3.82%
$0
$0 p.a.
90%
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
State Custodians Low Rate Home Loan with Offset - LVR up to 70% (Owner Occupier, P&I)
2.83%
2.85%
$0
$0 p.a.
70%
A competitive rate with no application or ongoing fee. This loan is not available for construction.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
2.74%
3.38%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Well Home Loans Balanced Variable - (Owner occupier, P&I)
2.92%
2.96%
$250
$0 p.a.
90%
A very low variable interest rate for borrowers with a 10% deposit. Add a 100% offset account for $10 a month.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Owner Occupier, P&I)
3.01%
3.04%
$0
$0 p.a.
80%
A competitive, flexible variable rate mortgage for home buyers borrowing above $500,000. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs.
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.25%
$300
$10 monthly ($120 p.a.)
80%
Buy your home and lock in a low rate for the first two years.
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Owner Occupier, P&I)
2.90%
2.92%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Owner Occupier, P&I)
3.19%
3.19%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
State Custodians Low Rate Home Loan with Offset - LVR up to 70% (Investor, P&I)
3.08%
3.10%
$0
$0 p.a.
70%
A competitive rate with no application or ongoing fee. This loan is not available for construction.
Macquarie Bank Offset Home Loan Package - LVR ≤ 80% (Owner Occupier, P&I)
3.19%
3.45%
$0
$248 p.a.
80%
Has a 100% offset account which helps you save on the amount of interest you pay on your mortgage.
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)
2.79%
4.04%
$0
$395 p.a.
90%
Get one of the lowest fixed mortgage rates on the market plus a 100% offset account. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
State Custodians Low Rate LOC - LVR up to 70% (Owner Occupier, IO)
3.08%
3.10%
$0
$0 p.a.
70%
Withdraw up to 70% of your home equity with this competitive line of credit loan. This loan is not available for construction.
loans.com.au Essentials - Variable (Owner Occupier, P&I)
3.04%
3.06%
$0
$0 p.a.
90%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
Greater Bank Great Rate Home Loan - Discounted 2 Year Fixed LVR ≤90% ($150K+ Owner Occupier)
2.89%
3.74%
$0
$0 p.a.
90%
A discounted 2 years fixed rate for home buyers. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
Athena Variable Home Loan - Investor, P&I
3.24%
3.20%
$0
$0 p.a.
80%
Athena offers one of the lowest rates in the market for investors. No ongoing fees and no application fee. Principal and interest repayments.
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, P&I)
2.69%
3.19%
$395
$0 p.a.
80%
A competitive fixed interest rate loan with no ongoing fees. Requires a 20% deposit.
loans.com.au Smart Home Loan - (Investor, P&I)
3.19%
3.21%
$0
$0 p.a.
80%
A competitive variable investor rate for borrowers with 20% deposits. Low fees, redraw facilities and repayment flexibility.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Investor, P&I)
3.29%
3.32%
$0
$0 p.a.
80%
Investors with 20% deposits can get this flexible variable mortgage with low fees and a reasonable rate.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Owner Occupier, P&I)
3.12%
3.28%
$300
$10 monthly ($120 p.a.)
80%
This flexible, competitive variable rate mortgage comes with a 100% offset account and redraw facility.
UBank UHomeLoan - 1 Year Fixed Rate (Investor, IO)
3.04%
3.86%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.

Compare up to 4 providers

Refinance your home loan

  • loans.com.au Essentials - Variable (Owner Occupier, P&I): comparison rate 3.06% p.a. An online loan with a low interest rate.
  • Tic:Toc Live in Loan Variable Rate - Principal & Interest: 2.93% p.a. Fast online application and a very competitive rate.
  • Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier): 4.04% p.a. A low-rate fixed mortgage with a 10% minimum deposit.
  • IMB Budget Home Loan - Special LVR

Why should I refinance?

Refinancing can save you money, but there are far more benefits than simple savings. You should look switching mortgages to:

  • Get a lower interest rate. The lower your rate, the lower your repayments. And rates in Australia are very competitive right now. If you haven't looked at your home loan in a few years you might be surprised to learn how much you're paying. Compare rates in the table above and see just how much you could be saving.
  • Unlock more features. Features like additional repayments, a redraw facility, portability and offset accounts can help you save on interest repayments. They give you more flexibility and let you get more out of your mortgage.
  • Unlock equity. If you've been paying off your loan for a while this money is called equity. And you can access it through a line of credit home loan in order to purchase another property, renovate your home or buy a car. Refinancing in this way can save you money on other purchases (a mortgage typically has a lower rate than a car loan, for example) but adding to your home loan means you're paying it off longer.
  • Consolidate your debts. Juggling a few debts can be hard. Debt consolidation lets you roll your existing debts into a single manageable loan. If done correctly, you can save on fees and reduce the amount of interest payable by combining your debt into a single repayment with a competitive rate. It's important to work closely with your lender during this period to ensure that you actually save money in the process.
  • Take advantage of a special offer. Many home loans will offer refinancing cash incentives or sign-up bonuses all year round. These offers are especially prevalent during the spring "mortgage season". Cashback incentives are usually around the $1,000 mark, but can be as high as $2,000. These offers can be a great way to minimise the costs of refinancing, but be sure that the loan you’re applying for still has a competitive rate, fees and features so that once the cash is gone you’re not left with an uncompetitive loan.

Examples: the benefits of switching to a better loan

Bryan switches to a lower rate

Close-up photo of a thoughtful young man.Bryan is four years into a 30-year mortgage. It's an owner-occupier, principal and interest loan that started out with a low 3-year fixed rate. But the fixed rate period has finished and the current rate is much higher, at 4.34%. Bryan initially borrowed $700,000 and has repaid $120,000 so far.

  • Current monthly repayment: $3,104 per month.

Bryan jumps onto finder.com.au and starts comparing loans. He doesn't care about premium features like offset accounts, but wants a loan that is flexible and offers a low rate. Bryan finds a good, basic mortgage product with a variable rate of 3.62%. The loan does come with a $500 application fee. His old loan has a $200 discharge fee.

  • Switching costs: $700.
  • New monthly repayment: $2,871 per month.

Even with the cost of switching factored in Bryan is still coming out ahead. By refinancing he'll save $233 a month in repayments. That's $2,796 a year.

Leah wants more features

A woman smiling at the camera.After making six years of repayments on a $800,000 mortgage Leah decides she wants more out of her loan. She has a package loan with her bank and has bundled together her mortgage with a credit card and a savings account. But the rate is high (4.12%) and the package doesn't suit her needs anymore. She hardly uses the credit card.

Leah compares her options and finds a variable loan with a 3.75% interest rate and a 100% offset account. She wants to take some of her savings and offset them against her loan to lower her interest and pay off the loan faster.

  • Savings: Leah's new rate is saving her over $100 a month.
  • Offset benefits: By putting $30,000 of savings into her offset account Leah can shave a year off her home loan.

Arabella taps into her home equity

Woman with shoulder-length hair smiling.Arabella wants to invest in property. She has almost paid off her home and has $750,000 in equity. Because she doesn't have much debt to repay on her loan she can easily refinance to a line of credit loan. She can then access cash to use as a deposit on a small investment property. This can be a risky investment strategy if she borrows too much money.

But because Arabella doesn't have much debt and her income is steady her risks are much lower. She's also planning to use her investment property as a source of income, further minimising her risks.

  • Benefits: Arabella can purchase an investment property faster and generate rental income.

But how do I refinance my home loan?

A man at a desk doing paperwork.The whole refinance process can be a little complicated but think about the savings! Investing a few hours of your time could save you tens of thousands of dollars over the life of your loan.
Here's the step-by-step refinancing process:

  1. Examine your current loan. Check your rate, repayment costs and fees. If your rate's above 4% you should look at refinancing.
  2. Speak to your current lender and ask for a lower rate. Sometimes your lender will offer you a discount on your rate. That could be all you need to do, but you could still find better elsewhere.
  3. Get a quote for your exit costs. If you decide to switch lenders you might have to pay a fee, but it could be worth it if the savings are big enough.
  4. Compare home loan options. Look for a loan with a better rate and features you need. It's that simple.
  5. Crunch the numbers. Examine the costs of your new loan, including application and ongoing fees and make sure the new loan really is a better deal.
  6. Apply for the new home loan. Wait for approval from the new lender.
  7. Exit your current loan. Notify your current lender and discharge your mortgage. Your new and current lender will take care of the rest.
  8. You've refinanced. Be sure to monitor your new loan's repayments and refinance again in a few years if you find a better option.

What documents do I need when switching lenders?

Generally you’ll need to provide proof of your salary and other income, government payments, home loan statements and a copy of your council rates notice, statements for any liabilities and either your drivers licence or passport. Once your information has been reviewed, your lender can normally give you a response fairly quickly. The verification, valuation and assessments, approval and settlement can take up to a month or more to complete depending on your financial situation.

How much will switching cost me?

Refinancing can come with upfront costs for starting a new loan and exiting your old loan. Fees are usually the biggest expense. You should always factor these costs into your decision, but don't let a single upfront cost deter you from making a major saving in the long-term.

Fees related to switching loans include:

  • Early terminations fees (for your old loan)
  • Discharge fees (for your old loan)
  • Application fees (for your new loan)
  • Ongoing fees (for your new loan)

Are there situations when I shouldn't refinance?

For most borrowers refinancing is a good idea. But it's possible that switching loans just isn't worth it. Here are a few cases where you're probably better off sticking with your current loan:

  • You have a fixed rate home loan with a very high exit cost and the cost of fees could outweigh the benefits of refinancing until the fixed rate period is over.
  • You think you’ll probably sell your property in the near future and you won't keep the loan long enough to make any decent savings.
  • Your loan amount is small. In this case the savings you’ll get by refinancing might not be worth the interest you’ll pay.
  • You've been with a lender for quite some time, enjoy the service you receive and have other products with them (you might be better off asking your lender for a discount).
  • Your property value has fallen or your LVR is still over 80%. This could see you pay lenders mortgage insurance again.
  • You need to refinance to a longer term. This could result in more interest paid over time.

Read our guide to see if it makes sense to refinance

Wait, are there any tax issues when refinancing?

There might be tax implications for you depending on your situation and whether the property is an investment or not. It’s always wise to speak to an accountant first.

Would you like to receive a call from the Property Tax Specialists to help assist in minimising tax? (Fees apply)
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