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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
5.94% p.a.
5.95% p.a.
$2,383
Principal & Interest
Variable
$0
$0
90%
No hidden feesFree redraw facility
5.99% p.a.
6.51% p.a.
$2,589
Principal & Interest
Variable
$0
$530
90%
6.04% p.a.
6.07% p.a.
$2,408
Principal & Interest
Variable
$0
$799
70%
  • Up to $4,000 when you refinance with an IMB home loan.
6.08% p.a.
6.14% p.a.
$2,419
Principal & Interest
Variable
$0
$840
90%
6.08% p.a.
6.12% p.a.
$2,419
Principal & Interest
Variable
$0
$495
90%
6.09% p.a.
6.11% p.a.
$2,421
Principal & Interest
Variable
$0
$195
70%
6.14% p.a.
6.39% p.a.
$2,434
Principal & Interest
Variable
$248
$350
70%
Flexible Home Loan Options
  • $0 application fee & fast turnaround times
  • Estimate your borrowing power in as little as 1 minute
6.19% p.a.
6.21% p.a.
$2,447
Principal & Interest
Variable
$0
$350
80%
  • Estimate your borrowing power in as little as 1 minute
  • Complete your application in as little as 15 minutes
6.19% p.a.
6.21% p.a.
$2,447
Principal & Interest
Variable
$0
$250
80%
  • Home loan specialists available today
6.19% p.a.
6.20% p.a.
$2,447
Principal & Interest
Variable
$0
$180
80%
6.24% p.a.
6.29% p.a.
$2,460
Principal & Interest
Variable
$0
$600
90%
6.24% p.a.
6.30% p.a.
$2,460
Principal & Interest
Variable
$0
$1,100
80%
6.24% p.a.
6.58% p.a.
$2,460
Principal & Interest
Variable
$395
$0
80%
6.44% p.a.
6.76% p.a.
$2,618
Principal & Interest
Variable
$0
$0
70%
6.69% p.a.
7.06% p.a.
$2,578
Principal & Interest
Variable
$395
$200
80%
6.84% p.a.
6.88% p.a.
$2,618
Principal & Interest
Variable
$0
$0
95%
7.24% p.a.
7.24% p.a.
$2,726
Principal & Interest
Variable
$0
$160
80%
More home loans
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

The ins and outs of refinancing home loans

Feel like you're getting a raw deal on your home loan? Don't despair. You have the power to do something about it: Refinance.

To refinance means to change your home loan, either moving it to a different mortgage product or a different lender (or both).

By refinancing your home loan to a new loan with a lower interest rate or better features, you could save yourself thousands of dollars over the course of your loan period.

What is refinancing?

Decades ago, switching home loans was a bona fide nightmare. Fortunately, those days are largely behind us now. The advent of technology and automation not only means remortgaging from one home loan to another is often faster than ever before, but that many of the associated costs can generally be minimised. 

There are hundreds of reasons a borrower might want to refinance their home loan including:

What is a refinancing home loan?

When it comes to the semantics of the banking sphere, many tend to get caught up on the term 'refinancing home loan'. In actuality, there isn’t such a thing. Rather, there are just regular owner-occupier or investment home loans that you can refinance to.

Further, you don't have to swap banks or lenders in order to refinance – you can remortgage your home loan to a different loan product with your existing lender too. So, if you were to switch from a variable rate home loan to a fixed rate home loan, you might find yourself better off sticking with your current lender than finding a new one.  

To bust another common myth: You don’t have to take on any extra debt in order to refinance, you can simply remortgage the amount left to repay (the ‘principal balance’). For example, let’s say you’re five years into a $500,000 home loan, and have repaid $100,000 so far. If you wanted to refinance to a more suitable loan that had, say, a 15-year loan term, an offset account and a lower mortgage rate, then you could simply shift your $400,000 of outstanding debt.

Though, some Australians do take on extra debt when refinancing. That's because refinancing allows them to borrow more money against their property, commonly called accessing equity. They might wish to use that equity to pay for renovations or put down a deposit on a second house, for example. Refinancing could allow them to do so.

Which is the best bank for refinancing a home loan in Australia?

Choosing the best bank for refinancing a home loan really comes down to your personal needs and circumstances. What's perfect for one person might not be the same for another.

Generally speaking, it's probably worth looking for a bank that offers competitive interest rates, low fees, and flexible terms. It might also be wise to consider their customer service, the ease of their application process, and any fees they charge to set up a new home loan.

In addition to rates, fees, and terms, however, it's likely one borrower will value specific features more than another. Some banks might throw in, say, a fee-free credit card with every home loan they sign, while another could allow for limitless additional repayments – while the former bank might tempt one borrower, the latter could catch the eye of another. That is to say, what's best for your friend, neighbour, or colleague likely won't be what's best for you. Consider your individual needs carefully before you go hunting for a home loan to refinance to.

And remember: A little bit of shopping around and comparing deals can go a long way.

When is the best time to refinance?

Wondering when the best time of refinance your home loan is? Well, that's a lot like pondering the length of a piece of string. The question of when to refinance is one only you can answer, as your financial situation is likely as unique as you are. That said, there are indicators that can signal a good time to refinance, and they're worth keeping an eye out for.

For starters, refinancing may be a good idea if you feel you're paying too much in interest on your home loan. It's generally recommended that borrowers keep an eye on the mortgage market so they know if their home loan deal has turned sour. Offered interest rates can vary greatly between banks and lenders, and it's not uncommon for a homeowner to wake up one day and find the once-competitive rate they secured years ago is no longer competitive at all. 

The current interest rate environment has pushed many home loan borrowers into 'mortgage stress' territory. InfoChoice's Real Hardship Survey in 2023 revealed 50% of mortgagors are spending more than 30% of their household income on mortgage repayments. But you don’t need to be in mortgage stress to be unhappy with your home loan. Keep in mind that even a slight reduction in interest rates, fees, and features can make a noticeable difference to your budget.

Another signal that your home loan simply isn't serving you anymore might come from outside your mortgage entirely. If your financial situation has changed since you took out your home loan, it might be worth considering your refinancing options. For instance, if you purchased your first home with a 5% deposit and you have since repaid a hefty chunk of your mortgage, you're likely now eligible for many deals you once weren't – those deals could be worth considering.

Or maybe you've built a notable stack of cash in your savings account and you now wish to use it to reduce the interest payable on your home loan – you might want an offset account to do that. If your current home loan doesn't allow for an offset account, now could be a good time to think about refinancing to a product that does.

However, it might not be worth refinancing if you:

  • Have only just taken out the loan and your situation hasn't changed much
  • Have a loan that comes with high refinancing costs, or your ideal loan comes with high establishment fees
  • Don’t have much time remaining on your loan term
  • Your remaining principal is small

Essentially, if the costs of refinancing outweigh the potential savings or other benefits, it’s probably not worth it.

How much can you save by refinancing to a better rate?

If you have a $500,000, 30-year home loan with an interest rate of 7% p.a., here's how much you could save by securing a lower rate:

Rate (p.a.) Monthly repayment Monthly savings Total cost over life of loan Total savings
7% $3,327 $1,197,544
6.75% $3,243 $84 $1,167,477 $30,067
6.5% $3,160 $167 $1,137,722 $59,822
6.25% $3,079 $248 $1,108,291 $89,253
6% $2,998 $329 $1,079,191 $118,353

5.75% 

$2,918 $409 $1,050,431 $147,113

Calculated using Savings.com.au's Refinance Home Loan Calculator

As the table above shows, by refinancing from a relatively high interest rate to a lower one, a borrower could potentially save hundreds of dollars a month, or tens of thousands over the life of their loan.  

How do I refinance my home loan?

Unhappy with your home loan? Many Aussie homeowners likely find themselves scratching their heads, wondering how to refinance a home loan. 

Fortunately, Savings.com.au has laid out the process in a handy step-by-step guide.

After reaching out to your lender to see if they can offer you a better deal and crunching the numbers to factor in the cost of refinancing, the next step is to compare other mortgages on the market with your own, and we've laid out some of the best home loans for refinancers in the table above.

If you’ve compared your home loan against others available, crunched the numbers, and believe you'd be better off making the switch, the next step is to gather your resources in order to apply for a new loan. Be prepared to dust off your documents as your broker or preferred lender will likely wish to validate your identification, view your pay slips and loan statements, and check out any other documents that detail your financial situation.

Once you have everything in hand, it's time to get in touch with your broker or chosen lender. They'll likely guide you through the application process. This usually involves a detailed review of your finances and potentially a property valuation – both of which can, in many cases, be completed entirely online.

Remember, good preparation and clear communication can make the process smoother.

After your application is submitted, there may be a waiting period while everything is finalised with both your new and current lender. Stay patient, and soon you could be enjoying the benefits of your new home loan deal.

If a few years down the track you think you can get an even better deal, you might consider refinancing again! After all, when it comes to home loans, lenders need to earn your loyalty. 

Frequently Asked Questions

You might consider refinancing your mortgage for various reasons. Perhaps you're eyeing a lower interest rate on your home loan, or maybe you're not quite clicking with your current lender. Other times, it could be about bringing your debts together under one roof, accessing the equity within your bricks and mortar to fund a renovation, or even financing a major purchase, like a new car, at a more friendly interest rate. Refinancing can be a path to making these goals more attainable.

Many home loan lenders set a borrowing cap at 95% of a property's value, which essentially means you need to have at least 5% equity in your home to refinance. When thinking about refinancing, a handy tip is to aim for a loan to value ratio (LVR) of at least 20%. This can help you sidestep the extra cost of Lenders Mortgage Insurance (LMI), making your journey to a more suitable mortgage a bit smoother.

To get a handle on your potential monthly repayments and figure out how much you could save by refinancing, you can use Savings.com.au's Mortgage Switching Calculator. It crunches the numbers for you, giving a clearer picture of the financial benefits of making the switch.

Many loans have a maximum LVR of 95%, which means you can't borrow any more than 95% of the value of your home. If you want to refinance, this means you must have at least 5% equity in your property. When it comes to refinancing, a general rule of thumb is to have 20% equity in the property to avoid having to pay for LMI.

In short, refinancing a home loan could impact your credit score. That's because the process of refinancing a mortgage is effectively the same as shutting down one lending facility and opening another – an action that will be reflected on your credit report. Further, a credit inquiry – which a lender will likely conduct prior to approving a borrower's application – also leaves a mark, albeit temporary, on a person's credit score. However, the potentially negative impact of refinancing on a person's credit score is typically negligible compared to the positive impact of refinancing on their financial position. Make sure to consider your own personal circumstances carefully to decide whether refinancing is the right course of action for you.

Refinancing a mortgage can be costly, incorporating discharge fees, set up fees, valuation fees, and potentially break fees, just to name a few. However, these costs might be recouped over time if you're refinancing to a loan with a lower interest rate or fewer fees. Its important to calculate whether the savings realised from refinancing outweigh the costs of doing so.

In most cases, you don't need a new deposit to refinance your home loan. Refinancing is more about reshuffling the existing loan based on your home's current value and the amount you still owe. The equity you've built up in your home typically takes the place of a deposit in this scenario. However, specific requirements can vary depending on your lender and your financial situation, so it's always a good idea to check with them directly for the nitty-gritty details. Additionally, if your equity is less than 20% of the value of your property, you might need to pay Lenders Mortgage Insurance (LMI) in order to refinance.