Refinance home loans

Refinancing your home loan is a smart way to get a better deal, pay less interest and get more out of your mortgage. Through Finder you can switch to rates as low as 1.79%.

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Refinancing means switching your current home loan to a new one. You can refinance to get a lower rate and save thousands in interest payments. But you can also refinance your home loan to borrow more money, switch to a more suitable loan type or to access features like an offset account.

You can enter some basic loan details in the fields above to get customised loan results for your situation. Or you can simply compare rates and find a better deal in the table below.

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Amount Saved

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Equity

UBank UHomeLoan Fixed
1.79%
2.18%
$63,833
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

Nano Variable Home Loans P&IHome≥ 25% Equity Refi Only

Nano Variable Home Loans
1.99%
1.99%
$58,480
Switch to this competitive variable rate with zero fees. Requires a 25% deposit.

HSBC Fixed Rate Home Loan Package P&IHome 2Y Fixed≥ 20% Equity

HSBC Fixed Rate Home Loan Package
1.88%
2.87%
$61,045
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Suncorp Home Package Plus Fixed P&IHome 2Y Fixed≥ 20% Equity

Suncorp Home Package Plus Fixed
1.89%
2.85%
$61,168
$3,000 refinance cash bonus
Lock in a low fixed rate for 2 years. Available with a 20% deposit. Eligible new borrowers can get the annual package fee reimbursed for the life of the loan. $3,000 refinance cash bonus for eligible borrowers. Other terms, conditions and eligibility criteria apply.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Equity

loans.com.au Smart Booster Discount Variable Home Loan
1.85%
2.21%
$61,558
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

IMB Fixed Rate Home Loan P&IHome 2Y Fixed≥ 5% Equity

IMB Fixed Rate Home Loan
2.07%
2.90%
$55,241
NSW and ACT customers only. Lock in a low fixed rate for two years. Available with a 5% deposit.

Athena Variable Home Loan P&IHome≥ 40% Equity

Athena Variable Home  Loan
1.99%
1.99%
$58,480
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

Well Home Loans Equity Plus P&IHome≥ 40% Equity

Well Home Loans Equity Plus
1.87%
1.90%
$61,179
Borrowers with 40% deposits or equity can get this low variable rate loan. 100% offset account included.

Community First Accelerator Package Fixed Home Loan P&IHome 3Y Fixed≥ 20% Equity

Community First Accelerator Package Fixed Home Loan
1.79%
3.12%
$63,438
Lock in this low fixed rate for 3 years and get a 100% offset account. Requires a 20% deposit.

ME Flexible Home Loan Fixed with Members Package P&IHome 2Y Fixed≥ 20% Equity

ME Flexible Home Loan Fixed with Members Package
1.89%
3.17%
$60,510
$3,000 cashback when refinancing a loan of $250,000 or more. Other conditions apply. Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.

Australian Unity Health, Wealth and Happiness Package Fixed Home Loan P&IHome≥ 30% Equity

Australian Unity Health, Wealth and Happiness Package Fixed Home Loan
1.89%
2.66%
$60,769
Lock in a competitive rate for 2 years and get package discounts. Requires a 30% deposit.

Bank of Melbourne Fixed Rate Home Loan with Advantage Package P&IHome 2Y Fixed≥ 20% Equity

Bank of Melbourne Fixed Rate Home Loan with Advantage Package
1.84%
3.38%
$61,978
$3,000 refinance cashback
Get a competitive home loan rate for two years. Requires at least a 20% deposit. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 November 2021. Terms and conditions apply). Refinancers Only.

Macquarie Bank Basic Fixed Home Loan P&IHome 3Y Fixed≥ 30% Equity

Macquarie Bank Basic Fixed Home Loan
2.09%
2.17%
$55,771
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.

Newcastle Permanent Building Society Premium Plus Package Fixed Rate P&IHome 3Y Fixed≥ 20% Equity

Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.09%
3.58%
$55,376
$2,000 cashback for eligible refinancers borrowing $250,000 or more.

Well Home Loans Balanced Fixed Home Loan P&IHome 1Y Fixed≥ 10% Equity

Well Home Loans Balanced Fixed Home Loan
1.84%
2.01%
$61,676
Owner occupiers can get a sharp fixed rate for the first year, plus an offset account. Available with a 10% deposit.

UBank UHomeLoan Fixed P&IHome 3Y Fixed≥ 20% Equity

UBank UHomeLoan Fixed
1.85%
2.13%
$62,236
A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.

IMB Fixed Rate Home Loan P&IHome 3Y Fixed≥ 5% Equity

IMB Fixed Rate Home Loan
2.17%
2.86%
$52,500
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online. Available with a 10% deposit.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Equity

loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.47%
$57,789
Home buyers can get a very low discounted variable rate for the first year. Requires a 20% deposit. Add an offset sub-account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days.

Australian Unity Wealth Builder Investor Package Variable Home Loan P&IInvestment≥ 30% Equity

Australian Unity Wealth Builder Investor Package Variable Home Loan
2.49%
2.92%
$43,825
Investors can get a competitive variable rate on this package loan. 100% offset account included. Requires a 30% deposit.

Macquarie Bank Basic Home Loan P&IHome≥ 40% Equity

Macquarie Bank Basic Home Loan
2.14%
2.14%
$54,409
Apply for the Macquarie Bank Basic Home Loan - LVR ≤ 60% (Owner Occupier, P&I) and get a low variable interest rate, plus no application and ongoing fees. Requires a 40% deposit.
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Find refinance home loan offers with the Finder App

How to refinance a 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. Ask for a lower rate; if your lender agrees, you can start saving money immediately without 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.

Refinancing is quite a straightforward process, although it requires quite a lot of paperwork to submit a loan application. If your situation is complicated or unusual, you may want expert refinancing guidance, so you could reach out to a mortgage broker.

Read our detailed, step-by-step refinance guide

Refinance market update: September 2021

Australians continue to refinance their home loans in huge numbers. According to the latest ABS lending data, Australians refinanced $17.2B worth of home loans in July, a market record.

It's not hard to understand why, as home loan rates remain very low across the board. It's possible to switch to an owner-occupier interest rate well below 2.00% right now. Even investment loans and interest-only loans are extremely competitive.

There really has never been a better time to refinance your home loan.

Updated on 06 September 2021 by Finder's senior home loans writer Richard Whitten.

How much money can you save by refinancing your home loan?

Refinancing to a lower interest rate will lower your monthly mortgage repayments. 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 $3,288 a year by switching to a lower rate loan. This is just an estimate, 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 $3,288 a year

According to figures from the Australian Bureau of Statistics, 38,026 Australians refinanced their home loans in June 2021. The average loan size refinanced was $457,995.

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 4 years into a 30-year mortgage with the details above and decides to refinance. Let's assume their original loan amount was $500,000. The loan principal has shrunk to $457,995 after 4 years. They find a new loan through Finder with a rate of just 2.14% and minimal fees.

Being 4 years into the loan, the borrower refinances to a 26-year term. This way they will repay the loan in the same amount of time (they could refinance to a 30-year term and get even lower monthly repayments, but extending the loan would mean paying interest over a longer time).

Loan details
Original loan amount$500,000
New loan amount$457,995
Original loan term30 years
New loan term26 years
Original interest rate3.30%
New interest rate2.14%
Original monthly repayment$2,189
New monthly repayment$1,915
Savings (monthly)$274
Savings (yearly)$3,288

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 your original loan amount, loan term, your current interest rate and the amount of your home loan that remains unpaid when you refinance.

🔥 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 are lower. 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.

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.

Video: Why you should consider switching

How much does refinancing cost?

There are costs involved with refinancing your loan, including lender fees and government charges. They can include:

  • 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. They may charge a fee of around $200-$250, although many cover this fee for you.
  • Discharge fees. Lenders often charge a fee to end a home loan, whether you are refinancing or paying the loan off because the property is sold.
  • Fixed rate break costs. If your current home loan has a fixed interest rate, you may have to pay an exit fee for breaking the loan. This can be thousands (or even $10,000-plus) so be sure to ask your current lender for a break fee before committing to a refinance.
  • 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 refinance scenario (using government fees from Victoria):

Fee/costAmount
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

When you should not refinance

There are situation where refinancing your home loan may cost you more than the benefits you'll get from refinancing to a cheaper rate loan. 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 may not worth it. Check with your current lender for a better idea of your break costs (it's hard to calculate on your own) and compare this fee against the savings you'll make with the new, cheaper loan.

Your equity is below 20% of the property's value

If you own less than 20% of the property, meaning your equity is less than 20% of the home's total value and your mortgage is worth more than 80% of its value, then you will have to pay lenders mortgage insurance when you refinance. This is payable even if you already paid it on the first home loan. This can be a big cost and sometimes, it can cancel out the financial benefits of refinancing to a cheaper loan.

Your property has lost value

Your equity is determined by your property's value. If you own 20% of a property that you paid $700,000 for, and that property is now only worth $650,000, it's going to be even harder to access equity and refinance. While this is a relatively rare scenario, properties can decline in value. In this situation, you may need to get professional valuation to make sure you have enough equity to refinance.

Your loan amount is small or you're selling soon

If your loan amount is relatively small, then the savings from refinancing might not be worth the hassle. If you're planning on selling within the next six months, then the effort, hassle and cost involved in refinancing could also cancel out any financial rewards.

Your home loan refinance questions answered

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65 Responses

    Default Gravatar
    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

      Avatarfinder Customer Care
      SarahJuly 20, 2021Staff

      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/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

    Default Gravatar
    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

      Avatarfinder Customer Care
      JeniMay 18, 2019Staff

      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

    Default Gravatar
    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?

      Avatarfinder Customer Care
      JeniApril 6, 2019Staff

      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

    Default Gravatar
    BekimApril 2, 2018

    hi I was just wondering how long is the minimum waiting time before refinancing again?

      Default Gravatar
      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.

      Hope this information helps

      Cheers,
      Arnold

    Default Gravatar
    JacquiMarch 11, 2018

    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

      Avatarfinder Customer Care
      MayMarch 21, 2018Staff

      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 our calculator for home loan eligibility. Alternatively, you can reach out to a mortgage broker who can offer a range of home loan options.

      Hope this helps.

      Cheers,
      May

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