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With interest rates increasing again, Australians are refinancing their home loan in record numbers. Money.com.au’s Debbie Hays, a Senior Mortgage Broker with over 25 years’ experience, says the current surge in refinancing is being driven by two key trends:
Interest rates from
5.54%
p.a.
Comp. rates from^
5.58%
p.a.
Variable Bare Home Loan 90% LVR
Borrow up to $2m with competitive variable rates from 5.54% p.a. (comparison rate^ 5.58% p.a.). Enjoy flexible payment options, zero monthly or ongoing fees, unlimited free redraws and up to 30 year terms. 90% Max LVR applies. Visit site for T&Cs and to check eligibility.
Loan amount
| Product | Interest rate | Comparison rate | Monthly repayment | Key features | Compare Now |
|---|---|---|---|---|---|
 Loans.com.au Variable Bare Home Loan 90% LVR | 5.54% p.a. variable | 5.58% p.a. | $2,852 Principal & Interest | Max LVR 90% Redraw | |
 in1bank in1home | 5.08% p.a. variable | 5.13% p.a. | $2,709 Principal & Interest | Max LVR 50% Redraw | |
in1bank in1offsethome | 5.18% p.a. variable | 5.62% p.a. | $2,739 Principal & Interest | Max LVR 50% Offset Redraw | |
 Laboratories Credit Union Simple Home Loan Owner Occupied | 5.19% p.a. variable | 5.21% p.a. | $2,742 Principal & Interest | Max LVR 95% App Fee $200 | |
 Pacific Mortgage Group Owner Occupied Variable Home Loan | 5.34% p.a. variable | 5.34% p.a. | $2,789 Principal & Interest | Max LVR 80% Redraw | |
 Gateway Bank Green Plus Home Loan | 5.35% p.a. variable | 5.64% p.a. | $2,792 Principal & Interest | Max LVR 80% Offset Redraw | |
 Move Bank Everyday Variable Home Loan | 5.39% p.a. variable | 5.29% p.a. | $2,805 Principal & Interest | Max LVR 80% Redraw App Fee $600 | |
 RACQ Bank Fair Dinkum Home Loan | 5.39% p.a. variable | 5.40% p.a. | $2,805 Principal & Interest | Max LVR 60% Split Loan | |
Gateway Bank Low Rate Essentials | 5.39% p.a. variable | 5.41% p.a. | $2,805 Principal & Interest | Max LVR 50% Redraw | |
 Police Credit Union Low Rate Home Loan Special Offer | 5.39% p.a. variable | 5.42% p.a. | $2,805 Principal & Interest | Max LVR 80% Offset Redraw | |
 Australian Mutual Bank GumLeaf Basic Variable Rate Owner Occupied | 5.39% p.a. variable | 5.46% p.a. | $2,805 Principal & Interest | Max LVR 60% Redraw App Fee $250 | |
 Horizon Bank Home Sweet Home Loan | 5.39% p.a. variable | 6.09% p.a. | $2,805 Principal & Interest | Max LVR 70% Offset Redraw | |
 The Mac Credit Union Discounted Basic Variable Home Loan | 5.42% p.a. variable | 7.08% p.a. | $2,814 Principal & Interest or Interest only | Max LVR 80% Redraw App Fee $400 | |
 Bank of China Discount Home Loan - Australian Income | 5.43% p.a. variable | 5.64% p.a. | $2,817 Principal & Interest | Max LVR 80% Redraw | |
Bank of China Discount Plus Home Loan - Australian Income | 5.43% p.a. variable | 5.82% p.a. | $2,817 Principal & Interest | Max LVR 80% Offset Redraw | |
 Unloan Refinance | 5.44% p.a. variable | 5.35% p.a. | $2,820 Principal & Interest | Max LVR 80% Redraw | |
 Greater Bank Great Rate Home Loan | 5.44% p.a. variable | 5.45% p.a. | $2,820 Principal & Interest | Max LVR 80% Cashback Redraw | |
 HSBC Home Value Loan | 5.44% p.a. variable | 5.45% p.a. | $2,820 Principal & Interest | Max LVR 50% Redraw App Fee $600 | |
Australian Mutual Bank GumLeaf Basic Variable Rate Owner Occupied | 5.44% p.a. variable | 5.51% p.a. | $2,820 Principal & Interest | Max LVR 70% Redraw App Fee $250 | |
 Up Home Up Home Variable Rate Loan | 5.45% p.a. variable | 5.45% p.a. | $2,823 Principal & Interest | Max LVR 80% Offset Redraw | |
 Woolworths Team Bank Fixed Interest Rates | 5.46% p.a. fixed 2 years | 6.67% p.a. | $2,826 Principal & Interest | Max LVR 80% Redraw App Fee $500 |
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Run through some quick questions to help us narrow down your options.
Step 3
Our home loan experts will help you choose the right loan and make switching a breeze.
Nathan from Queensland
"We bought our first house about 12 months ago, but I was talking to the boys at work and everyone seemed to be on a better interest rate than I was. So I figured I’d check it out online and do a comparison and came across Money.com.au. I entered a few details to see if I could get a cheaper rate and ended up talking to Nick, who was awesome. He did exactly what he said he was going to do, made it easy and got everything sorted for me. We ended up saving half a percent on our loan, so as much as the last two RBA rate cuts and all up we’re saving around $300 a month."
Nathan from Queensland
The refinancing process is very similar to what happens when you get a home loan initially to buy a property. But there are some additional steps that refinancers should keep in mind. Here's what to do:
Most lenders set the interest rates on their loans based on your loan-to-value ratio (LVR). Knowing your LVR gives you an idea of where to focus your search (and what rate you may qualify for). You’re likely to get a better interest rate when your LVR is 60% or less. That means maximising your property's valuation could mean you get a better refinance rate.
Some refinancers just want a better version of the same kind of loan. But you can also refinance to a different loan structure or type. Generally, you want a loan that’s going to save you interest and/or improve your financial situation.
Do a thorough home loan rates comparison. Getting a lower interest rate on your home loan by refinancing will save you money. Sometimes a lot of money.
Just bear in mind that the lowest rate home loans tend to be available on more basic home loans that are light on features. Talk to your mortgage broker about what, if any, features you want on your loan.
This is the form you need to submit to instruct your current lender that you’re leaving. But there is a very specific reason for requesting it at this stage.
After you request a discharge form, you will get a call from your lender's retention team. If you have a competitive rate from another lender ready to quote to them, more often than not, they will match it to keep your business.
Research from Money.com.au reveals nearly half of mortgage holders (49%) u-turned on their plans to switch lenders after being offered a lower interest rate by their bank’s retention team.
If your current lender won't play ball, it's time to switch.
Once you’ve chosen a new loan, you usually get the ball rolling by submitting an enquiry with the lender. If you're working with a broker they'll explain what you’ll need to submit as part of your application.
This usually incudes an application form, plus income documentation (e.g. payslips), bank statements showing the last three months of activity (for all accounts including credit cards), statements for the home loan being refinanced and proof that your property is insured.
The lender will go through your application in detail and check your bank account statements line by line. You may be asked to clarify specific points or provide extra detail.
The lender will also do a credit check and order a valuation of your property. Be sure to highlight any recent improvements to your property that might bump up the valuer’s appraisal. If the valuation is high enough that your LVR meets the loan eligibility criteria, your loan will be fully approved.
You’ll need to sign the loan discharge form and submit it to your old lender. In a lot of cases, the new lender or your mortgage broker will take care of this. All you need to do is sign the form.
Once the old loan is discharged, the new one is settled. Basically that means your new lender pays off your old loan. The old loan is then closed, and your new lender opens a loan account for you. Set a reminder to review your loan in 12 months’ time to make sure it’s still competitive.
The average borrower who refinances their home loan through Money.com.au has an LVR of just under 50% and over $570,000 of equity in their property. These borrowers are in a great position to access a wide range of the best refinance rates available.
Based on Money.com.au’s analysis, an average homeowner could save nearly $1,824 a year by refinancing to a lower rate. That's enough to cover a flight from Sydney or Melbourne to Bali for two people, or it could pay for a couple of months of groceries for an average family.
That saving is based on the average external home loan refinance amount of roughly $600,000, being switched from the average variable interest rate for existing loans (5.51% p.a. per the RBA) to one of the lowest ongoing refinance variable rate on Money.com.au’s database is (5.08% p.a), with 25 years remaining on the loan.
The table below shows the regular and total potential savings based on refinancing at different home loan rates.
| Interest rate | 5.75% p.a. | 5.50% p.a. | 5.25% p.a. | 5.08% p.a. |
|---|---|---|---|---|
Monthly repayments | $3,775 | $3,685 | $3,595 | $3,536 |
Monthly savings | ❌ | $90 | $180 | $239 |
Yearly savings | ❌ | $1,080 | $2,160 | $2,868 |
Total interest paid over the loan term | $532,392 | $505,357 | $478,646 | $460,669 |
Total savings over the loan term | ❌ | $27,968 | $55,630 | $94,916 |
Despite the potential savings on offer, Money.com.au research shows that nearly 30% of Australians have never refinanced their home loan.
The research shows that a third of borrowers would only consider refinancing if their new rate is at least 1% lower than their current one (e.g. from 6.00% to 5.00%), while 23% would act on a 0.50% reduction, and 22% would move for a 0.75% drop.
Refinancing means switching your current mortgage to a different lender (external financing) — usually to get a lower home loan rate — or a different loan product or higher loan amount with your current lender (internal financing)
When you refinance to a home loan offering better terms (interest rate, fees, features), your repayments could be lower with the new loan. You can also refinance your home loan to get a better repayment structure or to access certain features your current mortgage doesn’t have, like an offset account or redraw facility.
This is a straight swap, meaning your current home loan is closed, and your remaining balance is transferred to the new loan. In this instance, you’re not taking on extra debt and your repayments will be lower if you switch to a lower rate with the same loan term. If you opt for a shorter term, your repayments could be higher but you’ll save even more interest as the loan balance will fall faster.
You can also refinance your mortgage to access some of your home equity. This is done by increasing your existing home loan balance, known as a top-up or with a cash-out refinance (where your equity is paid as a lump sum). A home loan top-up can also include consolidating high-interest debts, such as credit cards and personal loans, into your mortgage, which typically has a lower interest rate. In either case, you’re increasing your debt, so your repayments will be higher after the refinance.
See your estimated refinance home loan repayments per week, fortnight or month.
Find out the impact of interest rate changes on your repayments.
According to Mansour, the most common reason borrowers refinance their mortgage is to get a lower interest rate. As an established borrower, lenders are eager for your business and may offer you lower interest rates and fees, with better loan features.
Right now, a competitive home loan rate typically starts with a low ‘5’ — but that could shift over the year ahead. The big four banks have released their forecasts for 2026, and most don’t expect further rate hikes in 2026, with only NAB forecasting another increase on May.
If you’ve built up equity in your property, refinancing could allow you to borrow more against that equity for purposes like renovating, buying an investment property (i.e. using your equity as a deposit) or investing in shares. You can do this by increasing your existing home loan with a top-up or with a cash-out refinance.
Refinancing to a shorter loan term will mean big interest savings if you can afford higher repayments. For example, refinancing a $600,000 home loan at 6.00% p.a. from a 25-year term to a 24-year term would increase your monthly repayments by $70, but would save you $26,213 in interest over the life of the loan.
You can refinance your mortgage to switch to a fixed rate or change from a fixed to a variable rate. Or, from principal and interest repayments (P&I) to interest-only (or vice versa). Switching to a different loan product allows you to remain with your current lender if you’re satisfied with them (although it doesn't hurt to negotiate a lower interest rate while you’re at it).
Refinancing your home loan could allow you to consolidate debts into your mortgage (i.e. increase your home loan size). This would mean a potentially lower rate on those debts, but likely over a longer loan term (meaning you could end up paying more interest over time).
If your fixed rate is coming to an end and you don’t want to be automatically rolled onto your lender’s standard variable rate, you’ll need to refinance. You have the option to switch to another fixed-rate home loan or opt for a variable rate (or a split between the two). It's important to note that refinancing before the end of your fixed period can result in break costs, so timing is crucial.
If you’ve separated from a partner with whom you co-borrowed, you’ll generally need to refinance to buy out the other person’s share in the home. Most lenders won’t allow you to remove a joint applicant from the loan.
Some people simply refinance because they have had a poor experience with their current lender and want to vote with their feet. You’ll need to evaluate whether the benefits of switching outweigh the refinancing costs before deciding to refinance.
Debbie Hays, Senior Mortgage Broker
"There are high levels of uncertainty among homeowners at the moment. People are actually willing to lock in a slightly higher fixed interest rate now, because their perception is that variable rates are going to increase well and truly beyond these rates in the next 12 months. But many of these borrowers are splitting their loan to keep a small variable portion in line with their current offset account balance plus a small buffer on top."
Debbie Hays, Senior Mortgage Broker
Our home loan experts have helped thousands of Australians to refinance their home loan. Here are their top tips for getting the best deal you can.
The average mortgage rate in Australia is higher for existing customers than those taking out a new loan, but there's no harm in asking your current lender if they can give you a discount.
Particularly if it's a high loan amount, lenders want to hold that loan on their books. So, they'll typically come back with a better rate, or they might try to make the difference between their rate and the competitor’s so small that you decide refinancing isn’t worth it.
But you need to do your research first. There’s no point calling up your lender and asking for a discount if you haven't first found a better rate from one of their competitors to quote to them.
When you’re refinancing your property, the mantra ‘location, location, location’ changes to ‘valuation, valuation, valuation’.
A lender will have your property valued as part of the refinancing process. Our brokers compare multiple lenders for our customers clients to ensure we get the highest valuation possible. This process is known as ‘shopping the val’.
A higher valuation can mean you’re eligible to refinance at a lower interest rate, or being able to borrow more against your equity. The lender offering the lowest rates can often be more conservative when valuing properties. Hence the need to shop around.
Refinancing to a loan with better features can reduce your rate payable and shave years off your mortgage.
If there are application fees for refinancing to a new lender, ask if these can be waived. In a lot of cases, they can be if the lender is keen to get the deal across the line or your broker has a strong relationship with the lender. The home loan fees charged by your existing lender when you leave (discharge fees) are naturally harder to negotiate away.
When you refinance, many lenders will default you back onto a 30-year loan term. This can cancel out any savings you might gain from a lower rate, as the longer loan term increases the total interest paid over time.
If you refinance to a lower rate, but keep your regular repayment at the same level as your old loan, your loan term should be shorter under the new loan and you'll save a huge amount of interest.
Akos from Woodford, NSW
“We wanted to refinance to a lower rate and unlock equity in our home for a variety of needs and opportunities. Refinancing can be daunting – especially if you run your own business and have a complex financial situation like we do – but the team at Money.com.au were exceptionally helpful. They were excellent communicators, told us exactly what information we needed to provide, and then handled the rest. I can’t recommend them highly enough. They found a bank willing to work with our complex financial situation, which allowed us to unlock equity in our home.”
Akos from Woodford, NSW
Just because you were initially eligible for a home loan, it doesn’t mean you will automatically be approved to refinance. A new lender will still assess your home loan application just as thoroughly as your current lender did.
If your circumstances have changed (your income, other debts, credit score etc.), that will be taken into account. If interest rates and other economic conditions have changed since you took out your loan, that could also impact your ability to refinance.
According to Debbie Hays, some borrowers who took out a loan when interest rates were at record lows are finding it difficult to refinance in the current environment. That’s because lenders must assess borrowers as if their rate is 3% higher than it actually is (to account for possible interest rate increases), and some borrowers are now struggling to pass the assessment under these higher rates.
The rising cost of living also isn’t helping, as it means many households have less capacity to direct funds towards their home loan, once other essential expenses (like groceries and insurance) are covered.
Pros
Cons
You can usually apply for a refinance home loan online in a matter of minutes, but realistically it can take 4-6 weeks for the entire process from start to finish (depending on the lender and complexity of your loan).
This could be as simple as asking to be moved to a different product if the lender has a better deal available. However, if you’re changing the structure or type of loan, you will typically still need to complete an application that will be subject to approval.
Examples could include:
There's no strict upper limit on how often you can refinance, but it's important to consider the associated costs. Generally, you need to stay on a particular loan long enough for the savings to outweigh the refinancing costs.
Remember too that refinancing involves a new application and credit enquiry that goes on your credit report. Refinancing very frequently could become a red flag for future lenders. Plus, what lender is going to want to sign up a borrower who is very unlikely to hang around for long?
According to Money.com.au's analysis of various lenders, refinancing costs can range from $500 to $2,000. These costs typically include:
A lot of the time, it’s possible to negotiate with your new lender to reduce or remove the upfront costs of the new loan. Or if the lender is offering cashback for people who refinance with them, this will likely outweigh any cost.
Yes, it’s possible to refinance even if you’re on a fixed-rate loan. However, there is usually a fee for breaking the fixed term. This can be several hundred dollars depending on the loan, so it’s worth thinking carefully whether refinancing will be worth it.
If you’re on a very uncompetitive fixed-rate loan with a decent chunk of time left on it, paying the break fee may ultimately be a smart move.
You can generally fix your home loan for a period of one to five years. This means your interest rate stays the same during that period, giving you certainty over your repayments.
You can refinance anytime, but it’s typically best to wait at least two years after your original loan settles. Frequent switching usually triggers fees and may raise concerns from lenders.
Most borrowers refinance to get a lower interest rate, access equity, switch to a shorter loan term, or change loan types. Other common reasons include consolidating debt, coming off a fixed rate, restructuring finances after a separation, or simply being dissatisfied with their current lender.
Refinancing may not be worth it if your loan-to-value ratio (LVR) is above 80%, as it could mean paying lender’s mortgage insurance (LMI). It’s also best to avoid refinancing if there are high exit or upfront fees, you’re close to paying off your loan, or your financial situation has worsened.
Refinancing through a mortgage broker can save time and give you access to a wide range of lenders and deals, usually at no cost. Brokers take care of the paperwork and negotiations, but typically won’t work with every lender. Going directly to a lender may suit you if you’re confident comparing loans and handling the process on your own.
A cash-out refinance is when you replace your current home loan with a new, larger one and take the difference in cash. It lets you access the equity you’ve built up in your property and use the funds for things like renovations, paying off debts, or major expenses. Just keep in mind: you’ll be increasing your loan balance and repayments.
Most lenders prefer you to have at least 20% equity in your home when refinancing. This means your loan-to-value ratio (LVR) should be 80% or less. If you have less equity, you may still be able to refinance, but you could face higher interest rates or need to pay Lender’s Mortgage Insurance (LMI).
Refinancing doesn’t reset your home loan entirely, but it can extend or shorten your loan term depending on what you choose. For example, if you refinance to a new 30-year loan, your repayments may be lower, but you’ll pay more interest over time. You can also refinance into a shorter term to pay off your loan faster.
When you refinance, your new lender pays out your old home loan in full, and that loan is closed. You then start making repayments on the new loan under the new terms – such as a different interest rate, loan amount, or loan length. Your old lender may charge discharge or exit fees as part of the process.
A refinance cashback offer is a promotion where your new lender gives you a lump sum of money as a reward for refinancing your home loan with them. It can help cover some of the upfront costs like application fees or valuation fees, making refinancing more affordable. Cashback amounts and terms vary between lenders.
There’s no one-size-fits-all answer to the best bank for refinancing – it depends on your personal situation, loan amount and goals. Top lenders often include the big four banks, plus competitive smaller banks and online lenders. Comparing interest rates, fees, features and customer service is key to finding the best fit for you.
If your old loan has a discharge fee, it typically ranges between $350 and $500. However, it may not always be called a discharge fee – lenders sometimes use terms like exit fee, loan closure fee, or early termination fee instead.
Compare multiple lenders, easily.
Loan Amount
Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Debbie Hays is a Senior Mortgage Broker at Money.com.au, with over 25 years of experience in the finance industry. She has a Diploma of Finance and Mortgage Broking and is a current member of the MFAA. Working closely with clients every day, Debbie understands the challenges borrowers face and takes pride in delivering personalised solutions that make the lending process smoother, clearer and more rewarding.
Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.
General information only
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.
What products, features and information are shown
While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.
Our product comparisons may not compare all home loan features and attributes relevant to you.
Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.
How home loans are sorted and filtered by default
When results load initially in the main comparison table on this page, we show relevant loans from our sponsored partners first, then all loans on our database starting with the lowest relevant rate available from each of Australia's top 10 largest lenders first (top 10 is according to APRA, based on total value of loans per lender). We know these are the rates our customers are most interested in seeing. After these initial results, we show all products on our database, sorted as follows:
Some home loan products listed in our tables are available through a mortgage broker. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.
Mortgage brokers are not authorised by Money Pty Ltd's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.
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