Refinancing your home loan can save you thousands of dollars, access better features, or consolidate debt. In 2026, with stabilising interest rates, it's an ideal time to review your current loan.
Signs It's Time to Refinance
- Your fixed rate is ending soon
- Your current rate is higher than market rates
- You want to access equity for renovations or investments
- Your circumstances have changed (income, family, property value)
- You want better loan features (offset, redraw, flexibility)
Potential Savings from Refinancing
Even a 0.5% rate reduction on a $500,000 loan saves approximately $2,500 per year in interest. Over the loan term, this adds up to tens of thousands in savings.
Refinancing Costs to Consider
| Cost Type | Typical Amount |
|---|---|
| Discharge fee (old lender) | $150 - $400 |
| Settlement/legal fees | $200 - $500 |
| Valuation fee | $0 - $600 |
| Application fee (new lender) | $0 - $600 |
| Break costs (if on fixed) | Varies significantly |
The Refinancing Process
- Review your current loan and calculate potential savings
- Compare options with a mortgage broker
- Submit application with new lender
- Property valuation (if required)
- Approval and settlement
- Old loan discharged, new loan begins