You can’t borrow more than 80% of the property value
Why we like it
This home loan offers a perk like no other. Not only does it consistently have great rates, but for every year that you have the loan, Unloan will knock 0.01% off your interest rate. This means your loan will get slightly cheaper every year (on top of being a consistently low rate compared to most home loans).
Unloan doesn't bump up the costs in other areas either, as this home loan has no fees. If you're not concerned about an offset account, it's hard to beat a loan this cheap.
This home loan has a Finder Score of 9.5.
What does it mean to refinance a home loan?
Refinancing means switching from your current home loan to a new one. You can refinance your home loan to:
Get a lower interest rate.
Borrow more money.
Switch to a loan that suits your current financial goals.
How to compare home loans when refinancing
To find a better loan:
Enter your current loan amount and interest rate in the fields above the table (or just estimates if you're not sure).
Compare loans by sorting from highest to lowest interest rate or by looking at the amount you can save with each loan (if the rate is lower than your current loan).
Click the green button on any loan in the table if you think it suits your needs and submit an enquiry. It only takes a minute.
More ways to find a better home loan
Comparing for yourself is easy. But if you want a shortcut, every month Finder picks our top home loans for the month by looking at loans with the lowest rate and fees.
And you can check out the full list of Finder's 2025 Home Loan Award winners if you want to find loans that had consistently low rates and fees all year.
How much does refinancing cost?
Factoring in fees and charges, you can expect to spend around $1,000 when refinancing your home loan. But this depends on your old loan's fees and the new one too.
In many cases, the amount of money you'll save when refinancing to a cheaper rate will more than outweigh the costs of refinancing.
Discharge fees. Lenders often charge a fee to end a home loan of around $125 to $250.
Government fees. Refinancers may have to pay state government fees to de-register their old loan and register the new one.
Here's a quick example of switching costs in a hypothetical refinance scenario (using government fees from Victoria):
Fee/cost
Amount
Discharge fee (old loan)
$250
Mortgage deregistration fee
$125.70
Mortgage registration fee
$125.70
Application fee (new loan)
$450
Title search fee
$30
Total refinancing costs:
$981.40
Fixed rate break costs
You may have to pay an exit fee for breaking the loan when refinancing a fixed rate loan. Ask your current lender for a break fee estimate before committing to refinancing.
Refinance cashbacks take all the costs away
Some lenders really want your business. To get you to switch, they offer home loan cashbacks to cover your refinancing costs.
This can net you several thousand dollars, which should more than offset most people's loan fees.
What are the benefits of refinancing?
You can get a lower interest rate. The most common reason to refinance is to get a better interest rate on your home loan than your current lender offers. Easy.
You could increase your loan amount. Maybe you want to use your equity to increase your loan amount but your existing lender has turned you down. Refinancing could allow you to borrow more.
You could access new features. If your existing loan doesn't offer things like an offset account or redraw, it's definitely reasonable to want to refinance so you can get them.
What are the disadvantages of refinancing your home loan?
Paying extra fees. Refinancing comes with fees, although the new loan should save you money in the long term.
Paying more overall. This is where the math gets complicated. Let's say you were 10 years into a 30 year loan term. Refinancing your remaining loan value to another 30 year loan could mean you end up paying more over the life of the loan. Confused? Take a look below at our more detailed explainer.
Losing equity. Refinancing to access more cash means you'll probably lose some of the equity you've built in your home.
Refinancing when you own less than 20% of your property is a bad idea
If you want to refinance and you're still fairly early into your loan, and you started with a small deposit, you could end up paying LMI again. You're better off waiting until you own 20% of the property.
How much can you save by refinancing in 2025?
We estimate that the average person could save up to $7,044 a year by switching to a lower rate:
The average Australian home loan is now $659,920 (according to the ABS) - a record high!
Assuming a 30-year loan term, if you switched to that lower rate your monthly repayments would drop from $4,268 to $3,681. That's a saving of $587 every month, or $7,044 a year.
Data is correct as of 1 July 2025. This savings example is a hypothetical estimate only. The lowest rate is for an owner-occupier loan with 80% LVR.
Market update by Rebecca Pike – Finder's senior home loans writer
How to find the best refinance rate
Look for a cheaper rate
The lower the interest rate the more money you save. This is true for every borrower and it's the first thing most refinancers look for.
Even just a small difference in rates can end up saving you hundreds of dollars a year in repayments.
Make sure the loan meets your needs
You also need to refinance to a home loan that suits your needs. If you need a loan with an offset account, you want to avoid a basic loan that doesn't have this feature.
A package loan might look attractive, but it might have high annual fees and products you don't need.
Avoid a loan with high fees
There are usually 1 or 2 fees with any new home loan. But the cost of fees can vary widely, from practically nothing to hundreds of dollars. It's worth keeping loan fees in mind when preparing to refinance a home loan.
Check your current interest rate. Look at competitive mortgage rates and see if yours is too high. You could ask your lender to lower your rate or start looking for a better deal.
Compare home loan refinancing options. If you do decide to switch lenders, look for a suitable loan with a better rate and features you need.
Crunch the numbers. Work out the costs of your new loan, including application and ongoing fees, and make sure the new loan really is a better deal. Check the exit costs from your current loan too.
Apply for the new home loan. Collect your mortgage documents, submit your application and then wait for approval from the new lender.
Exit your current loan. When you refinance, your new bank will notify your current lender and you can discharge your old loan.
Our expert says: I rarely refinance, but I call my lender every year
"My current home loan is one of the lowest rates on the market, so I rarely think about refinancing. But I watch my home loan rate like a hawk. Because every now and then my lender offers new customers a slightly better deal than what existing customers get. Sneaky. If I ignore this, my rate gets much worse over time. So I call my lender up and ask for the lower rate. And I get it every time."
The Finder Score is an easy, data-driven way to judge home loans at a glance. Here's how:
Every month, our insights team analyses more than 7,000 home loans across 120+ lenders.
We assess the most important features, rate them, and then combine them via a weighted methodology to create a simple score out of 10.
The Finder Score is designed by our insights and editorial team. We score home loans objectively, Finder's commercial partnerships don't affect the scores at all.
Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.
The nitty gritty: how Finder Score is calculated
The Finder Score examines the costs and features of each home loan. These are combined to create the final score.
Cost Components (85% of overall score)
Features Component (15% of overall score)
Interest costs
Full and Partials Offsets
Upfront Fees
Extra Repayments and Redraw
Monthly/ Annual Fees
Loyalty Discounts
Cashbacks
The cost of the home loan makes up 85% of the score. The other 15% is made up of features that come with the home loan.
Here's how we weigh each factor in the cost component.
Cost Components (85% of overall score)
Calculation Methodology
Interest
Calculated over a $500,000 loan amount and 30 year loan term. The cumulative interest paid is calculated over 5 years, 3 years and 1 year for variable rates, long term fixed rates and short term fixed rates respectively.
Application Fees
Added to the cost, if applicable
Settlement Fees
Added to the cost, if applicable
Ongoing Fees
Calculated over 5 years, 3 years and 1 year for variable rates, short term fixed rates and long term fixed rates respectively.
Legal Fees
Added to the cost, if applicable
Valuation Fees
Added to the cost, if applicable
Cashback
Added to the cost, if applicable
Frequent Flyer Points
Converted to a dollar value based on ticket prices/redeemable gift cards and deducted from the cost
Here's how we weigh each factor in the features component.
Features Components
Calculation Methodology
Offset Account (5% of final score)
Each variant is assigned 10 points if they have a full offset account and 5 points if they have a partial offset account. No points are awarded if the variant does not have this feature.
Extra Repayments and Redraw (5% of final score)
Each variant is assigned 10 points if they have this feature. No points are assigned if they do not have this feature.
Loyalty Discounts (5% of final score)
Each variant is assigned 10 points if they have this feature. No points are awarded if they do not have this feature.
Your home loan refinance questions answered
There are some rare situations where refinancing could cost you more than you could save by switching:
Your equity is below 20% of the property's value. If you own less than 20% of the property at its current value, then you will have to pay lenders mortgage insurance (LMI) when you refinance. Even if you paid it for your original loan.
Your loan amount is small or you're selling soon. If you don't have much left to repay on your home loan, then the savings from refinancing might not be worth the hassle. If you're planning on selling within the next 6 months, then the effort and cost involved in refinancing could also cancel out any financial rewards.
You can refinance a fixed rate home loan, but you have to pay a break fee for exiting the loan early during the fixed period. If you are close to the end of the fixed period on your loan, then this fee will be smaller, but if you have a few years left, it could cost thousands. Your current lender can provide you with a break cost estimate to help you decide if the cost is worth it.
Theoretically, you can refinance your loan no matter how much or how little equity you have. But if your equity is under 20% of your remaining loan amount, then refinancing, while possible, gets expensive. This is because your new lender will charge LMI if your equity is below 20%.
You can get a home loan with a deposit or equity below 20%. And that's true for refinancers too. But it's a really expensive idea. You'll have to pay LMI, even if you already paid it.
And if you're in negative equity or simply don't own much of your property, getting a new loan approved is very unlikely.
You're better off building equity by making repayments on your current loan.
Most refinancers switch from a 30-year home loan to another 30-year loan. Even if they're many years into their original loan. That's fine and will keep your monthly repayments low. But you could save more money in the long run by switching to a shorter loan term.
If you refinance 5 years into a 30-year loan term, you could switch to a 25-year loan. You'd pay more each month but end the loan at the same time as your original loan started.
It's really a question of what works better for you. Do you want lower monthly repayments but a longer loan term (and more interest overall)? Or do you want to get a lower rate and pay the loan off faster with a shorter term?
You can also stick to a new 30-year loan term but make extra repayments or build up offset savings. This has the same effect but gives you more options.
It can take 2–4 weeks to get your new loan application approved and the old loan discharged. But it varies widely and depends on your new lender and your old one.
Many online lenders (and even some of the banks) now offer fast digital applications. And it's usually easier for refinancers to get loans approved because they have built up equity and have a track record (hopefully!) of making regular loan repayments.
Every lender sets its own interest rates for home loans. There's no one refinance rate. In fact, most lenders don't even have specific loans with rates just for refinancers (most loans are available to both new borrowers and people refinancing existing loans).
Right now interest rates for owner-occupiers are as low as 4.95%.
When couples get divorced, there are hard decisions to make around property. You may decide to sell the home and share the profits or let one person keep it.
If one person decides to buy out the other person's half, you will need to refinance the mortgage when transferring the property title. Otherwise, the person selling would still be on the mortgage.
You can also decide to keep the home loan as it is and continue to make repayments.
It's always better if a divorcing couple can agree amicably on what to do with their property. But it's still a really good idea to get legal advice.
You can refinance as often as you like, but given the time involved and the cost of registering a mortgage, realistically it doesn't make sense to switch more than once every few years. You're better off finding a loan that will hopefully remain a good deal for a few years.
Yes, it's possible to refinance a home loan in order to pay off personal loan or credit card debts. You can essentially borrow a little more against your equity and use that to clear the debts.
This can save you money because interest rates on credit cards and most personal loans are higher than home loan rates.
But there is a risk that comes with using your home loan to cover smaller debts. A home loan can last 30 years, whereas most people pay off a credit card or personal loan in months or years. Even at a lower rate, a smaller debt costs you much more in interest if you take 30 years to pay it off.
Repaying your home loan faster can help you offset this in the long run.
Yes. You can switch to a better loan with your current lender. Or you may be converting a property from your residence into an investment property. In this case you'd need to refinance your home loan to an investment loan.
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Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been reviewed by James Millard, a member of Finder's Editorial Review Board.
Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio
Richard's expertise
Richard has written 640 Finder guides across topics including:
I am pensioner and the loan remaining about 160,000.
Am I still eligible for refinance? One of loan company said I am not eligible because over age and loan amount is too small. The current variable rate is now more than doubled for the original. I am wondering if I can get better rate than existing one.
Finder
RichardJuly 26, 2023Finder
Hi Yoko,
Unfortunately rates have increased for most borrowers now. But you might still be able to get a better deal. If lenders keep knocking you back I suggest talking to a mortgage broker. They can help you find a lender who might accept your application.
Another option is to ask your existing lender for a better rate. It never hurts to ask and you won’t need to refinance this way.
RohanJuly 19, 2021
Hi guys,
Basically, I’m trying to find the best way to borrow money from my considerable amount of equity for renovations, etc. but also increase my loan term period to help offset my ongoing repayment costs. It’s currently 2.97% fixed over 7 years. Can you help me?
Kind Regards
Rohan
Finder
SarahJuly 20, 2021Finder
Hi Rohan,
If your current loan is fixed for 7 years at 2.97%, then you will need to pay a break fee in order to end that loan and break that contract with your current lender. This amount changes daily, depending on how much loss the bank incurs by ending your loan. You can call your bank for an estimate.
Depending on what this break fee is, it may be worth ending your loan and refinancing. Alternatively, if you don’t want to end the current loan as the fee is too high, you could get a second mortgage against your equity.
However, the first step is to find out how much that break fee is going to be, so you can work out your next step. There are many competitive deals at the moment, so it may be worth ending your current loan even if you have to pay a fee, in order to take advantage of a better value offer.
Hope this helps!
Cheers,
Sarah
TimMay 16, 2019
Hi,
I’m after help to get a better interest rate on my home loan my current rate is 4.03%. I’m a bit indecisive in regards to how to go about it. I’m unsure of fees cost to change loan. I’m lost I have to say.
Regards,
Tim
Finder
JeniMay 18, 2019Finder
Hi Tim,
Thank you for getting in touch with Finder.
You may ask your lender if they can offer better deals than the one you have. Lenders will usually have a number of incentives to retain customers thinking of refinancing, including discounted interest rates and waived fees. If you’re still considering shopping around, you may start comparing refinance home loans. You may use the refinancing calculator to calculate the expected costs. I also suggest that you seek help from a mortgage broker since you’re looking for providers that offer the cheapest rate.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
MaryApril 4, 2019
How does being over 60 years and semi -retirement impact refinancing for an investment property where the rental income covers the mortgage repayments?
Finder
JeniApril 6, 2019Finder
Hi Mary,
Thank you for getting in touch with Finder.
As you know, there is technically no maximum age limit for when an Australian can apply for a home loan – residential or investment property. However, lenders have the responsibility to ensure that they only approve home loans to applicants who can afford the repayments without experiencing financial hardship, so older applicants will find it much more difficult to obtain home loan approval.
Since you mentioned that you’re over 60 and applying for a home loan, you’ll need to provide a greater amount of information regarding your current and future financial position including the rental income. I also suggest that you seek professional help from a mortgage broker to find out which lenders offer loans suitable for your needs.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
BekimApril 2, 2018
hi I was just wondering how long is the minimum waiting time before refinancing again?
ArnoldApril 3, 2018
Hi Bekim,
Thanks for your inquiry
There’s really no limit, at least under the law. Legally, you could close on one mortgage today, then go right out tomorrow and refinance it. Now, how long should you wait before refinancing again? And how soon will your lender allow you to get out of your current mortgage?
This will vary extensively between lenders. As a practical matter, few lenders are likely to approve you for a new mortgage if you’ve been in your current one for less than a year. Your current lender may also have restrictions on how soon you can get out of the mortgage, usually in the form of prepayment penalties. It would be best to speak with your lender for clarification about this.
Knowing just how much equity you have in your home before you start looking to refinance a home loan is crucial. If you don't have enough equity you might have to pay for LMI again or get stuck with a higher rate.
When you have bad credit it can be harder when refinancing. Home loans are available even with bad credit though – find out how you can refinance today.
Keen to switch home loan to a better deal? Refinancing could save you thousands, but make sure you know all the fees and charges before you switch.
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I am pensioner and the loan remaining about 160,000.
Am I still eligible for refinance? One of loan company said I am not eligible because over age and loan amount is too small. The current variable rate is now more than doubled for the original. I am wondering if I can get better rate than existing one.
Hi Yoko,
Unfortunately rates have increased for most borrowers now. But you might still be able to get a better deal. If lenders keep knocking you back I suggest talking to a mortgage broker. They can help you find a lender who might accept your application.
Another option is to ask your existing lender for a better rate. It never hurts to ask and you won’t need to refinance this way.
Hi guys,
Basically, I’m trying to find the best way to borrow money from my considerable amount of equity for renovations, etc. but also increase my loan term period to help offset my ongoing repayment costs. It’s currently 2.97% fixed over 7 years. Can you help me?
Kind Regards
Rohan
Hi Rohan,
If your current loan is fixed for 7 years at 2.97%, then you will need to pay a break fee in order to end that loan and break that contract with your current lender. This amount changes daily, depending on how much loss the bank incurs by ending your loan. You can call your bank for an estimate.
Depending on what this break fee is, it may be worth ending your loan and refinancing. Alternatively, if you don’t want to end the current loan as the fee is too high, you could get a second mortgage against your equity.
We have guides to help you learn more about break fees and second mortgages:
https://www.finder.com.au/home-loans/fixed-rate-home-loans/fixed-rate-home-loan-break-costs
https://www.finder.com.au/home-loans/second-mortgages
However, the first step is to find out how much that break fee is going to be, so you can work out your next step. There are many competitive deals at the moment, so it may be worth ending your current loan even if you have to pay a fee, in order to take advantage of a better value offer.
Hope this helps!
Cheers,
Sarah
Hi,
I’m after help to get a better interest rate on my home loan my current rate is 4.03%. I’m a bit indecisive in regards to how to go about it. I’m unsure of fees cost to change loan. I’m lost I have to say.
Regards,
Tim
Hi Tim,
Thank you for getting in touch with Finder.
You may ask your lender if they can offer better deals than the one you have. Lenders will usually have a number of incentives to retain customers thinking of refinancing, including discounted interest rates and waived fees. If you’re still considering shopping around, you may start comparing refinance home loans. You may use the refinancing calculator to calculate the expected costs. I also suggest that you seek help from a mortgage broker since you’re looking for providers that offer the cheapest rate.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
How does being over 60 years and semi -retirement impact refinancing for an investment property where the rental income covers the mortgage repayments?
Hi Mary,
Thank you for getting in touch with Finder.
As you know, there is technically no maximum age limit for when an Australian can apply for a home loan – residential or investment property. However, lenders have the responsibility to ensure that they only approve home loans to applicants who can afford the repayments without experiencing financial hardship, so older applicants will find it much more difficult to obtain home loan approval.
Since you mentioned that you’re over 60 and applying for a home loan, you’ll need to provide a greater amount of information regarding your current and future financial position including the rental income. I also suggest that you seek professional help from a mortgage broker to find out which lenders offer loans suitable for your needs.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
hi I was just wondering how long is the minimum waiting time before refinancing again?
Hi Bekim,
Thanks for your inquiry
There’s really no limit, at least under the law. Legally, you could close on one mortgage today, then go right out tomorrow and refinance it. Now, how long should you wait before refinancing again? And how soon will your lender allow you to get out of your current mortgage?
This will vary extensively between lenders. As a practical matter, few lenders are likely to approve you for a new mortgage if you’ve been in your current one for less than a year. Your current lender may also have restrictions on how soon you can get out of the mortgage, usually in the form of prepayment penalties. It would be best to speak with your lender for clarification about this.
Hope this information helps
Cheers,
Arnold