Refinance Your Home Loan. Keep More of What You Earn.

The average Australian who refinances their home loan saves between $200 and $400 per month on repayments. The exact savings depend on your current rate, loan balance, and the rate you can access through refinancing. Even a 0.25% reduction on a $500,000 loan saves approximately $75 per month.

Consider refinancing your home loan when your fixed rate period ends, when you have built significant equity, when your financial situation has improved, or when you find rates significantly lower than your current rate. As a rule of thumb, if you can save 0.5% or more, refinancing is usually worthwhile.

Break costs are fees charged by your lender if you exit a fixed-rate home loan before the fixed period ends. They can range from a few hundred dollars to tens of thousands, depending on the remaining term and the difference between your fixed rate and current market rates. Variable rate home loans typically do not have break costs.

Refinancing a home loan typically takes 2 to 6 weeks from application to settlement. The process involves a new credit assessment, property valuation, and settlement between the old and new lender. A broker can help streamline the process and manage communication between all parties.

Comparing refinance home loan rates through OptiCheck does not affect your credit score. A formal credit check occurs when you submit a full application, which may temporarily lower your score by a few points. However, the long-term savings from a better rate typically far outweigh any minor credit score impact.

Yes, you can refinance your home loan with your current lender, which is sometimes called a rate renegotiation or internal refinance. However, switching to a new lender often delivers better rates because lenders compete more aggressively for new customers. A broker can help you compare both options.

Some lenders offer cashback incentives of $2,000 to $4,000 when you refinance your home loan to them. These offers can help offset switching costs. However, a lower interest rate over the life of the loan is usually more valuable than a one-off cashback. A broker can help you calculate which option saves more.

Yes, many borrowers consolidate credit card debt, personal loans, and car loans into their refinanced home loan. Because mortgage rates are typically much lower than other debt types, this can significantly reduce your total monthly repayments. However, you should be aware that you are extending the repayment period of those debts.

You do not need a cash deposit to refinance your home loan, but you do need sufficient equity in your property. Most lenders require at least 20% equity (80% LVR) to avoid Lenders Mortgage Insurance. If your property has increased in value since purchase, you may have more equity than you think.

Even a small rate difference can add up to significant savings over time. A 0.25% reduction on a $500,000 home loan saves approximately $900 per year. If the switching costs are low (or covered by a cashback offer), refinancing for even a modest rate improvement can be worthwhile.