The types of refinance and which one you need

The simplest refinance. The new loan pays out the old for roughly the same balance, at a lower rate or with better features. Lenders assess it on standard policy, LVR to 80 per cent without LMI and higher with it, and treat it as low risk because nothing is being added. Most refinances are this, and it is the one your current lender can often match by repricing.

The loan increases and the difference is released. Lenders ask the purpose, cap it by LVR and sometimes by amount, and want evidence for larger sums. Investment purposes are assessed with the new asset's income; business purposes shift the assessment; personal purposes are capped. Set up as a separate split for the released amount.

The loan increases and the lender pays out listed debts at settlement. Assessed with the debts in the file, with limits on number and amount at some lenders and specialist lenders for debts in arrears. Serviceability usually improves because the paid-out repayments disappear. Structured as a short split to avoid stretching the debt.

Changing fixed to variable, variable to fixed, interest only to principal and interest or the reverse, splitting a single loan into deductible and non-deductible portions, or merging splits. Often done with the current lender as a variation without a full refinance, sometimes requiring a new lender when the current one will not offer the structure. Interest only extensions are assessed on serviceability.

Leaving a specialist, near-prime, low doc, bridging or private loan once the reason for it has passed: a default paid and aged, returns lodged, a property sold, a build completed. Assessed by the new lender on the current position, with the history explained. This is the refinance where a specialist adds most value, because the new lender has to be comfortable with why the old loan existed.