Refinance home loans

Refinancing your home loan is a smart way to pay less interest and save money on your mortgage. Through Finder you can switch to rates as low as 1.89%.

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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.

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

Nano Variable Home Loans P&IHome≥ 20% Equity

Nano Variable Home Loans
2.24%
2.24%
$57,410
Competitive rate with zero fees, fast approval and a 100% free offset account. Available for refinancers and existing buyers purchasing their next home. 20% deposit required.

Greater Bank Great Rate Discount Variable with Family Pledge Home Loan P&IHome≥ -10% Equity

Greater Bank Great Rate Discount Variable with Family Pledge Home Loan
2.19%
2.20%
$61,072
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.

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

loans.com.au Smart Booster Discount Variable Home Loan
2.10%
2.46%
$66,927
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

Ubank Neat Variable Home Loan P&IHome≥ 40% Equity

Ubank Neat Variable Home Loan
1.89%
1.90%
$82,417
Get flexibility and the option to make unlimited extra repayments with this variable rate loan.

Yard Variable Home Loan P&IHome≥ 20% Equity

Yard Variable Home Loan
1.99%
2.02%
$74,537
A competitive variable rate loan for home buyers with an optional offset account ($120 annual fee). 20% deposit required.

IMB Budget Home Loan P&IHome≥ 20% Equity

IMB Budget Home Loan
2.09%
2.10%
$67,749
A low-rate, no-frills home loan for borrowers with a good deposit and unrestricted repayments. $0 application fee for eligible borrowers with principal-and-interest repayments and deposits of at least 20%.

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

Macquarie Bank Basic Home Loan
2.39%
2.39%
$46,338
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.

HSBC Home Value Loan P&IHome≥ 30% Equity

HSBC Home Value Loan
2.27%
2.28%
$55,206
$3,288 refinance cashback offer
This competitive variable rate loan is available for borrowers with 30% deposits. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Athena Variable Home Loan P&IHome≥ 40% Equity

Athena Variable Home  Loan
2.14%
2.14%
$64,721
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

Speak to a broker about your options

Consultant

OneTwo Variable Rate Home Loan P&IHome≥ 20% Equity Refi Only

OneTwo Variable Rate Home Loan
2.09%
1.99%
$68,354
$5,000 refinance cashback.
A variable rate loan for owner-occupier refinancers living in NSW, VIC or SA metro and inner regional areas. Get an extra 0.15% off your rate as you repay the loan and get up to $2,500 in bonus payments. Terms and conditions apply.

G&C Mutual Bank Momentum Home Loan P&IHome≥ 40% Equity

G&C Mutual Bank Momentum Home Loan
2.24%
2.26%
$57,410
A variable rate loan for owner-occupiers looking to refinance. This loan has low fees and a 100% offset account.

Newcastle Permanent Building Society Real Deal Home Loan P&IHome≥ 20% Equity

Newcastle Permanent Building Society Real Deal Home Loan
2.37%
2.41%
$46,989
Get up to $3,000 refinance cashback when your LVR is 90% or lower ($2,000 cashback for loan amounts of $250K+ and above, $3,000 for $500K+). Other conditions apply. This variable rate loan requires a 20% deposit and has an offset account.

homeloans.com.au Low Rate Home Loan with Offset P&IHome≥ 40% Equity

homeloans.com.au Low Rate Home Loan with Offset
2.14%
2.14%
$64,721
A competitive rate with no application or ongoing fees. This loan is not available for construction.

ME Flexible Home Loan With Member Package P&IHome≥ 20% Equity $400k up to $699,999

ME Flexible Home Loan With Member Package
2.44%
2.90%
$41,941
$3,000 cashback when refinancing a loan of $250,000 or more. Other conditions apply.A competitive variable rate package home loan with a 100% offset account.

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

loans.com.au Smart Booster Discount Variable Home Loan
2.24%
2.72%
$56,695
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.

ME Flexible Home Loan With Member Package P&IHome≥ 50% Equity $400k up to $699,999

ME Flexible Home Loan With Member Package
2.29%
2.75%
$53,062
Flexible, competitive variable rate loan. You will need a 50% deposit or equity to get this loan. $3,000 cashback when refinancing a loan of $250,000 or more. Other conditions apply.

Ubank Own Home Loan Fixed P&IHome 1Y Fixed≥ 20% Equity

Ubank Own Home Loan Fixed
2.99%
2.50%
$148
Fix to this very competitive rate for one year. This loan 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
4.59%
3.59%
$-131,000
$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.

Yard Variable Home Loan P&IInvestment≥ 20% Equity

Yard Variable Home Loan
2.19%
2.22%
$60,003
A variable rate loan for investors with an optional offset account ($120 annual fee). 20% deposit required.

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

Macquarie Bank Basic Fixed Home Loan
4.79%
3.02%
$-147,537
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.
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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:

🔎 1. Check your current interest rate. Look at competitive mortgage rates and see if yours is too high.

📞 2. Speak to your lender and ask for a lower rate. If your lender agrees, you can save money straight away without refinancing.

📊 3. Compare home loan options. If you do decide to switch lenders, look for a suitable loan with a better rate and features you need.

🧮 4. 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 (there may be a discharge fee or break costs).

📝 5. Apply for the new home loan. Collect your mortgage documents, submit your application and then wait for approval from the new lender. This can take a few hours to compile, but it's a worthwhile investment of time considering the potential savings! See how Kate Browne saved $6,000 on her mortgage after getting a better deal.

🏃‍♀️ 6. Exit your current loan. When you refinance, your new bank will notify your current lender and discharge your mortgage.

Refinancing is quite a straightforward process, although it requires quite a bit 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: May 2022

Australians refinanced $16.362 billion in home loans in March, the latest month for which we have data from the Australian Bureau of Statistics (ABS). While not a record month, it's not far off and a big leap over the previous month.

We can expect more Australians to switch home loans soon, as interest rates have really started to rise. Fixed rates have been rising for a while now, and variable rates are set to lift off the back of May's RBA cash rate increase.

Updated on 04 May 2022 by Finder's home loans editor 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, and even a small decrease 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 $4,428 a year by switching to a lower rate loan.

Here's how we calculated that figure:

  • The average Australian borrower refinances a loan amount of $470,334.
  • The average variable interest rate loan on Finder is 3.32%. The lowest variable rate is 1.82%.
  • Assuming a 30-year loan term, if you switched to that lower rate your monthly repayments would drop from $2,065 to $1,696. That would save you $369 a month or $4,428 a year.
  • These rates and averages are current as of March 2022.

Of course, this is just an estimate and doesn't take into account your personal circumstances or factors like interest rate rises and fees.

You can try this for yourself with Finder's mortgage repayment calculator.

🔥 Hot tip: Save more by refinancing your home loan and keeping repayments the same

Refinancing to a loan with a lower interest 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 making extra repayments every month because you're paying off slightly more than you need to. While you're paying the same as before, more of your repayment is going towards your principal. Use our extra repayments calculator to see how much you can save.

If your new loan has an offset account, you could also save the extra money there. This functions just like an extra repayment, allowing you to pay less interest, but your money is accessible.

There are more benefits to refinancing than just saving money:

  • Get more mortgage features. Get 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 equity. If you've repaid a substantial amount of your mortgage or its value has increased, you have equity. You can borrow against this equity using a line of credit or by refinancing to borrow more money.
  • Consolidate debt.Refinance multiple debts into your mortgage and pay it off with a single repayment and lower interest rate.

Video: Why you should consider switching

How much does refinancing cost?

  • 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.
  • Government fees. Refinancers may have to pay 2 state government fees: a fee to deregister their old loan, and a fee to register the new one. These vary between states and territories.
  • Upfront fees. Some lenders charge application or settlement fees of between $250-$750.
  • Valuation fees. Your new lender will value your property during the application. They may charge a fee of $200–$250, although many lenders cover this fee for you.
  • Fixed rate break costs. You may have to pay an exit fee for breaking the loan when refinancing a fixed-rate loan. This can be thousands, so ask your current lender for a break fee before committing to a refinance.

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

Sometimes, refinancing your home loan may cost you more than the benefits you'll gain. Here are some common scenarios where this may be the case:

Your fixed rate break costs are too high

If the cost of breaking a fixed rate loan is too high, then refinancing may not be worth it. Check with your current lender for an 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 6 months, then the effort, hassle and cost involved in refinancing could also cancel out any financial rewards.

Sarah Megginson

Your home loan refinance questions answered

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65 Responses

  1. 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

  2. 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

  3. 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

  4. 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

  5. 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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