Refinancing Australia

Refinancing replaces your existing loan with a new one. For most Australians, this means replacing an existing home loan with a new mortgage to secure a lower interest rate, reduce repayments, access equity, consolidate debts, change loan features or switch lenders. The new lender reassesses income, expenses, credit conduct, property value, equity and loan purpose before approval.

Home loan refinancing means replacing your current residential mortgage with a new home loan, either with your existing lender or a different lender. It is commonly used to switch to a sharper rate, change from fixed to variable, access equity, consolidate debt, move investment loans or improve loan features such as offset and redraw.

Refinancing is worth it when the expected savings and improved loan structure outweigh the switching costs over the period you plan to keep the loan. Costs may include discharge fees, registration fees, application fees, valuation fees, fixed rate break costs and possible lenders mortgage insurance if the new LVR is too high. See refinancing costs and fees before switching.

Common refinance triggers include a higher-than-market interest rate, fixed rate expiry, wanting lower repayments, needing equity access, consolidating debt, moving from interest only to principal and interest, switching investment loans, separating from a partner or being declined by the current lender for a restructure.

Refinancing starts with reviewing your current loan, property value, loan balance, equity, rate, repayment type and goal. You then compare suitable lenders, submit documents, complete valuation and credit assessment, sign new loan documents and settle. At settlement, the new lender pays out the old lender and the old mortgage is discharged.

Common refinance options include rate and term refinancing, cash-out refinancing, debt consolidation refinancing, fixed rate expiry refinancing, investment property refinancing, commercial property refinancing, construction loan refinancing, SMSF loan refinancing, bad credit refinancing and refinancing after separation or divorce.

Refinance rates in 2026 change frequently by lender, LVR, borrower type, credit profile, repayment type and loan purpose. A lower advertised rate is not automatically the best refinance option. Compare the comparison rate, fees, features, cashback terms, offset access and whether you can pass lender assessment before applying.

Refinance costs may include discharge fees from the current lender, government registration fees, application or settlement fees, valuation fees, package fees and fixed rate break costs. Lenders mortgage insurance may also apply again if the new loan is above the lender's LMI threshold. These costs should be compared against the expected savings before switching.

Yes. Cash-out refinancing can allow a borrower to access usable equity for approved purposes such as renovations, investment, deposits, business needs or debt consolidation. The lender assesses the property value, loan-to-value ratio, income, expenses, credit conduct and the purpose of the additional funds.

Yes. Debt consolidation refinancing may combine credit cards, personal loans, car loans or other debts into a home loan. This can reduce monthly repayments, but it can also increase total interest if short-term debt is stretched over a 25 or 30 year mortgage term. The structure needs to genuinely improve the borrower’s position.

The APRA serviceability buffer requires banks to assess many home loan applicants at an interest rate above the offered rate. In 2026, the mortgage serviceability buffer remains 3 percentage points. This can stop some borrowers from refinancing even when they are managing their current repayments.

Possibly. Some borrowers cannot pass a new lender’s serviceability test even though they are making current repayments. Options may include negotiating a retention rate with the current lender, seeking a like-for-like refinance pathway, using a non-bank lender or restructuring the loan purpose and term. Eligibility depends on LVR, conduct, income and lender policy.

Yes. Investment property loans can be refinanced to review rates, reset interest-only terms, access equity, improve cash flow, consolidate debt or switch lenders. Lenders assess rental income, personal income, expenses, total debt, property value, LVR and portfolio exposure.

Yes. Commercial property refinancing may be used to switch lenders, improve terms, release equity, refinance private debt, extend a facility, restructure business property debt or move after a bank decline. Commercial refinance is assessed differently from a standard home loan and may rely on lease income, business cash flow, asset type and borrower structure.

Common issues include insufficient equity, a low valuation, failing serviceability, poor repayment conduct, credit issues, high unsecured debt, unstable income, unacceptable cash-out purpose, fixed rate break costs, LMI applying again or the lender not accepting the property or borrower structure.

Yes. It is usually worth asking the current lender for a retention rate before switching. If the lender offers a materially better rate, you may avoid discharge fees, new application work, valuation risk and LMI reassessment. However, the offer should still be compared against the wider market.

No. Property Finance Help is not a lender, broker, credit provider or financial adviser. We provide general information and referral support for property finance enquiries and may connect you with a suitable finance contact where appropriate. We do not make credit decisions or provide personal financial advice.