Switching Home Loan Lenders Australia

Switching lenders is a refinance. You apply for a new loan with the new lender, who assesses your income, expenses, credit history and property value. If approved, the new lender pays out your existing loan at settlement and your new loan goes live. The process typically takes four to six weeks from application to settlement.

Yes. The new lender assesses your application from scratch, regardless of your repayment history with your current lender. They run a credit check, verify your income and assess your expenses and existing debts. If your situation has changed since your original loan — such as lower income, higher expenses or additional liabilities — this will be factored into the new lender's decision.

Submitting an application triggers a credit enquiry, which is recorded on your file. A single well-targeted application has a minimal effect. Multiple applications submitted simultaneously can have a more noticeable impact. It is worth checking your credit report before applying and choosing your lender carefully before submitting.

There is no penalty as such, but there are costs involved. Discharge fees are charged by your outgoing lender to close the loan. Application and valuation fees may apply with the new lender. Government mortgage fees are payable in every state. If you are on a fixed rate, break costs may also apply. See our refinancing costs guide and fixed rate break costs guide for full breakdowns.

Most lender switches take four to six weeks from application to settlement. More complex scenarios — such as self-employed income, equity release or properties that need a full physical valuation — can take longer. A complete document set submitted on day one is the most effective way to reduce delays.

Yes, but you should check your break cost estimate first. If rates have risen since you fixed — as they have in 2026 — break costs may be minimal or zero. If rates have fallen, they can be significant. See our fixed rate break costs guide for how to get a quote and assess whether switching from inside the fixed term makes sense.

Yes. Most lenders will offer a better rate to retain your business if you ask. A simple call requesting a rate review, or mentioning that you have a competing offer, often results in a meaningful discount. If your current lender's best offer is still not competitive after negotiating, switching is more clearly justified.

You can switch to any lender on the Australian market, including banks, credit unions, building societies and non-bank lenders. Non-bank lenders often have more competitive rates or more flexible income assessment policies for certain borrower types. A specialist can help you compare bank and non-bank options based on your specific situation.