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Refinance home loans
With interest rates as low as 2.14% it's a good time to refinance your home loan. And don't worry, we'll show you how to switch.
Refinance Guides
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Refinancing simply means switching from one home loan to another. You can switch loans with your current lender or get a new product with a new lender.
Go to site
Compare and switch to a new mortgage in the table below or read our detailed tips on how to refinance.
St. George Home Loan Offer
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.54 %
p.a.
variable rate
2.56 %
p.a.
comparison rate
St. George Home Loan Offer
Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get $4,000 cashback (Other terms, conditions and exclusions apply).
- Interest rate of 2.54% p.a.
- Comparison rate of 2.56% p.a.
- Application fee of $0
- Maximum LVR: 80%
- Minimum borrowing: $150,000
A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get up $4,000 cashback for their first application (Other terms, conditions and exclusions apply)."]
Compare your mortgage to the offers below
Enter your home loan amount, current interest rate and loan term below to see how much you could save by refinancing. Click on the green button to find out more about a loan on the lender's website.
After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.
- A comparison of home loans from multiple lenders.
- Expert guidance through the entire application process.
- Free suburb and property reports.
The Adviser’s number 1 placed mortgage broker 8 years running (2013-2020)
How much can I save by refinancing my home loan?
Refinancing to a lower interest rate will lower your monthly mortgage repayments. And even a small decrease in monthly repayments can add up to thousands of dollars over the length of a home loan.
Using ABS and Finder data, we estimate that the average refinancer could save up to $75,551 over 25 years by switching to a lower rate loan. This is just an estimate of course, and not a true indication of any one borrower's potential savings.
Here's how we calculated that figure.
How a home loan refinance can save the average borrower $75,551
According to figures from the Australian Bureau of Statistics, 31,045 Australians refinanced their home loans in July 2020. The average loan size refinanced was $424,980.
According to Finder app data the average user inputs a current interest rate of 3.30%. But there are much lower rates available on Finder.
Let's assume a borrower is 5 years into a 30-year mortgage with the information above and decides to refinance. They find a fixed rate loan through Finder with a rate of just 2.14% and minimal fees.
| Loan details | |
|---|---|
| Loan amount | $424,980 |
| Loan term | 25 years |
| Current interest rate | 3.30% |
| New interest rate | 2.14% |
| Current monthly repayment | $2,082 |
| New monthly repayment | $1,830 |
| Savings (monthly) | $252 |
| Savings (yearly) | $3,024 |
| Savings (25 years) | $75,551 |
These are significant savings: over $75,000 in 25 years. Now of course this is just an estimate and doesn't take into account your personal circumstances or factors like interest rate rises (you won't be on the same rate for 25 years) and fees. Your own savings could be less than this, or more, depending on the numbers.
🔥 Hot tip: Save more by refinancing your home loan and keeping repayments the same
Refinancing to a loan with a lower rate saves you money every month because your repayments reduce. But you can save yourself even more money in the long run by switching to a lower rate and keeping your repayments the same as they were before.
This way, you're basically making extra repayments every month because you're paying off slightly more than you need to. You're paying the same as before but it's paying off your principal faster. Use our extra repayments calculator to see how much you can save.
If your new loan has an offset account you can simply save the extra money there. In this way it functions just like an extra repayment.
Other reasons to refinance your home loan
There are more benefits to refinancing than just saving money.
- Get more mortgage features. Borrowers may switch to a mortgage because it has features like additional repayments, a redraw facility, portability or offset accounts. These features can help you save on interest repayments or give you more flexibility.
- Unlock your equity. If you've repaid a substantial amount of your mortgage then this is equity. You can borrow this equity using a line of credit or by refinancing and borrowing more money.
- Consolidate debt. You can refinance multiple debts into your mortgage and pay it off with a single interest rate. This can help because a home loan rate is lower than a car or personal loan rate. However, paying off a smaller debt over decades by adding it to your mortgage can end up costing you more in interest over time.
How do I refinance my home loan?
Switching is easier than you think. You just need to compare, find a better home loan and then apply for it like any other mortgage. Here are the steps involved in refinancing your home loan:
🔎 Check your interest rate. Look at competitive mortgage rates and see if yours is too high.
📞 Speak to your current lender and ask for a lower rate. It never hurts to ask for a lower rate and if your lender agrees then you can save yourself the hassle of refinancing.
📊 Compare home loan options. If you do decide to switch lenders, look for a loan with a better rate and features you need. Make sure it's a loan type that matches your situation.
🧮 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. Check your exit costs from your current loan too (there may be a discharge fee or break costs).
📝 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. Notify your current lender and discharge your mortgage. Your new and current lender will take care of the rest.
And that's the basic refinancing process. To give you more help, this page contains a list of all the documents you'll need to submit a home loan application. And if you want expert refinancing guidance, you can also speak to a mortgage broker.
Read our detailed, step-by-step refinance guide
How much does refinancing cost?
There are costs involved with refinancing your loan, including lender fees and government charges.
- Upfront fees for your new loan. Some lenders charge application or settlement fees while others don't.
- Valuation fees. Your new lender will value your property during the application and may charge a fee for it.
- Discharge fees. Lenders often charge a fee to end a home loan, whether by refinancing or paying the loan off.
- Fixed rate break costs. If your current home loan has a fixed interest rate then you can face higher costs for breaking the loan. Read our guide on fixed loan break costs for more information. If this cost is too high you should wait until the fixed period ends before refinancing.
- Government fees. Refinancers may have to pay two state government fees, one to discharge their old loan and one to register the new one.
Here's a quick example of switching costs in a hypothetical scenario (using government fees from Victoria):
| Fee/cost | Amount |
|---|---|
| Discharge fee (old loan) | $250 |
| Mortgage deregistration fee | $110.80 |
| Mortgage registration fee | $110.80 |
| Application fee (new loan) | $450 |
| Settlement fee | $75 |
| Valuation fee (new loan) | $220 |
| Title search fee | $30 |
| Total refinancing costs: | $1,246.60 |
Learn more about calculating your refinancing costs
Are there situations where I shouldn't refinance my home loan?
There definitely are cases where refinancing will cost you more. Here are some common ones:
Your fixed rate break costs are too high
If the cost of breaking a fixed rate loan is too high then refinancing isn't worth it. Check with your current lender for a better idea of your break costs (it's hard to calculate on your own).
Your equity is below 20% of the property's value
If you don't own much of the property then you'll have a harder time refinancing. If you need to borrow more than 80% of the property's value you will have to pay lenders mortgage insurance (even if you paid it on the first home loan). This can be a big cost and makes refinancing pointless.
Your property has lost value
Your equity is also determined by your property's value. It's hard to refinance if you own 20% of a property you paid $700,000 for if that property is now only worth $650,000.
While this is a relatively rare scenario, properties can lose value. This sometimes happens because the property is damaged or the local property market is in a decline. In this situation you'l need to get professional valuation and make sure you have enough equity to refinance.
Your loan amount is small or you're selling soon
If your loan amount is relatively minimal then the savings from refinancing aren't worth the hassle. And if you're selling soon you won't benefit from the savings much either.
Read more on this topic
-
Refinancing when unemployed
Refinancing your mortgage while unemployed is challenging, but it may be possible if you have an alternative means to repay the loan.
-
What you need to consider if you refinance to a line of credit loan
A line of credit loan allows borrowers to access funds from the equity in their property. Learn about what you need to think about when refinancing to one.
-
Refinancing an SMSF home loan
Refinancing an SMSF home loan is the same as refinancing any other home loan, although it requires some extra thought and consideration.
-
How to refinance after bankruptcy
Bankruptcy doesn’t have to stop you from refinancing your home loan. Here’s how to get a new loan that fits your needs even with an imperfect credit file.
-
Refinancing after retirement
No matter what stage of life you’re in, it pays to review your home loan and consider whether it still meets your needs. Compare refinancing deals today.
-
Refinancing a home loan in arrears
Get a better deal on your home loan even if you're in arrears.
-
Refinancing your home loan: Tax deductions
Learn more about tax deductions when it comes to refinancing an investment property with some words from property tax expert Shukri Barbara.
-
Interest-only home loan refinancing
Refinancing to an interest-only loan can give you lower mortgage repayments and tax benefits for some investors.
-
How much equity do I need to refinance?
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.
-
The complete guide to refinancing your home loan
Finder.com.au's comprehensive guide to refinancing your home loan. Learn the ins and outs of refinancing and get a better home loan.
Ask an Expert
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 to shop around, kindly check out this page to start comparing your options. You may use the refinancing calculator on this page 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
Hello there!
I will be 57 years of age in May, am single, working full time, and this would be my first home. My total assets are worth around $75k. I have $25k-$30K deposit total.
If you could just advise me please of how much property price could I afford? The total apartment price that it.
Much appreciated
J
Hi Jacqui,
Thanks for your inquiry.
The amount you can borrow (relative to the price of the property) for a home loan is basically up to the lender based on their assessment of your overall financial situation. Usually, they would consider some factors like your income, employment, assets, other liabilities and even credit history. Nevertheless, if you like to calculate an estimate, you may use the calculator we have on this page. Alternatively, you can reach out to a mortgage broker who can offer a range of home loan options.
Hope this helps.
Cheers,
May
Hi just wondering what the process is for changing name on the title from sole proprietor to joint proprietors when there is a mortgage on title?
Hi Christine,
Thanks for your inquiry.
Whilst your property is on mortgage, it is still possible to change the ownership of the property. There’s a guide on this page – https://www.finder.com.au/guide-to-changing-property-ownership that outlines how you can go through the process. But first, you’d need to speak to your lender about your plan in changing the type of ownership of your property.
Hope this information helped.
Cheers,
Arnold
If I have two St George loans with a mate of mine…(both our names on both…he pays one and I pay the other) what is the best way of getting out of having two loans and having only one with my name and one with his name on it?
Phil.
Hi Phil,
Thanks for your question.
It is possible to refinance a joint home loan to an individual loan and get a better rate through any of the options above. Please note that you should meet certain eligibility criteria to get approved. Please click the name of the loan product on our page so you’ll see the details how to qualify. The ‘go to site’ button is for submitting your application.
You may want to consider getting in touch with a mortgage broker if you need assistance in finding a suitable home refinancing loan.
Cheers,
Anndy
How to refinance the exsiting mortgage for low interesr rate
Hi Senita,
Thanks for your question.
If you are looking to refinance your existing mortgage, the step-by-step refinancing process is explained in the above infographic.
Should you need assistance in finding a suitable home loan, a mortgage broker can help.
Cheers,
Anndy
I have a rented unit in Sydney that I would like to refinance to buy land in NZ where I now live. I have contacted a broker who came back with 75% LVR (thats OK), but with a whopping 7.35% interest.
What other options are open to me?
Hi Richard,
thanks for the question.
You’ve come through to finder.com.au, a comparison service. Unfortunately by law we’re unable to suggest specific home loan rates and fees which you could apply for. It might be a good idea to contact a number of lenders that you’re interested in or alternatively speak to another broker to get another recommendation.
Cheers,
Marc.
Do you know if any of the lenders will re-finance pensioners? Both aged 60, and still have 15 years left on current mortgage
Hi Ros,
thanks for the question.
While I can’t by law suggest specific lenders to try to refinance to, a good mortgage broker will be able to give you a personalised suggestion of which lenders to speak to.
I hope this helps,
Marc.
Hi Ros,
Thanks for reaching out.
It may be difficult to qualify for a refinance if you are pensioners as most lenders will review you as high-risk borrowers. However, your best course of action would be to speak to a licensed mortgage broker to discuss your refinance options. A broker can help you understand your borrowing capacity and they can draw upon a panel of lenders, including specialist or non-bank lenders, that may have more lenient eligibility criteria.
Ultimately, a broker will determine your propensity to repay the refinanced loan by taking into account your income sources, assets, credit history and any existing debts that you have. This type of application will be treated on a case-by-case basis.
We have a page about refinancing after retirement which you might find useful.
All the best,
Belinda
I have A mortgage in New Zealand and I wondered if I could refinance that mortgage in Australia. I live and work in Australia now and it costs money to transfer to and from New Zealand. Or is there a way I could get part of a loan, say 100000 to pay part of that mortgage off and pay it in Australia? Thanks
Hi Terry,
Thanks for reaching out.
Most Australian lenders prefer that the security for the home loan is based in Australia, so it may be difficult for you to refinance the mortgage in this case. However, your best course of action would be to speak to a licensed mortgage broker as they’ll be able to help you understand your refinancing and borrowing options.
To minimise the cost of transferring funds to and from New Zealand, you can compare a range of global money transfer providers to find one with competitive terms.
All the best,
Belinda