Reduce the ongoing cost
A lower rate may reduce repayments and interest, but only after discharge fees, application or settlement costs, package fees and any fixed-rate break costs are considered.
REFINANCING
A refinance should have a reason.
A different lender is not automatically a better outcome. Start with the purpose, calculate the changeover cost and consider the full loan structure over time.
LOOK BEYOND THE RATE
A lower repayment can still cost more over time.
If a borrower has 22 years remaining and refinances into a new 30-year term, the monthly repayment may fall partly because the debt is being repaid over eight additional years—not only because the rate is lower.
Without a deliberate repayment strategy, resetting the term can increase total interest and keep the borrower in debt longer. A sound comparison should show the proposed repayment, total interest over an equivalent period, switching costs, useful features and the estimated time required to recover those costs.
THE REAL CHANGEOVER COST
Refinancing is not free.
01Existing-lender costsDischarge fees and possible fixed-rate break costs.
02New-lender costsApplication, valuation, settlement, package or annual fees where applicable.
03Government and third-party costsMortgage registration, title or legal costs may apply depending on the transaction.
04Structural costA longer term, extra borrowing or inappropriate features may outweigh an apparent rate saving.
SOLID REASONS TO REVIEW
Define the outcome before choosing the lender.
The proposed refinance should respond to your stated needs and objectives, with material costs, limitations and trade-offs explained before you decide.
Improve the loan structure
Offset access, redraw, repayment frequency, fixed or variable splits and the number of loan accounts can matter as much as the advertised rate.
Access equity for a defined use
Equity may support renovations, investment or another acceptable purpose. The amount, purpose, benefit and resulting repayments need to be understood before borrowing more.
Consolidate debt carefully
Moving shorter-term debt into a home loan can reduce the monthly repayment, but stretching that debt over many years may increase total interest unless the term and repayment strategy are controlled.
A MEANINGFUL COMPARISON
What I examine with you.
- Your purpose and prioritiesWhy you are considering the change and what a suitable outcome needs to achieve.
- Current versus proposed positionRates, balances, remaining terms, repayments, fees and relevant loan features.
- Net benefit and break-even periodWhether expected benefits reasonably outweigh the cost and effort of switching.
- Structure over timeLoan term, offset use, repayment strategy, splits, flexibility and potential future needs.
- Risks and limitationsVariable-rate changes, valuation outcomes, lender criteria and the effect of additional borrowing.
WHERE I COME IN
A considered review—not a rate-chasing exercise.
I start with your reason for refinancing and your current position. I then compare potentially suitable options against your needs and objectives, including relevant costs, features and the possible longer-term impact.
If changing lenders does not appear to provide a meaningful benefit, that should form part of the conversation too. The objective is a supportable decision—not refinancing for its own sake.
Request a refinance review ↗This page provides general information only and does not take into account your objectives, financial situation or needs. It is not a recommendation to refinance and does not guarantee savings, eligibility or credit approval. Costs, rates, valuations, lender requirements and available products vary. Extending a loan term or consolidating debt may increase total interest. Obtain appropriate legal, tax and financial advice where relevant before entering a new credit arrangement.