Guide to Refinancing Your Home Loan

So, you’ve bought your first property, and your mortgage broker assures you that you’ve got the cheapest deal available. As time passes and interest rates are cut, a few of your friends mention the loans they have through their banks. You want to be able to reduce your repayments and pay off your property sooner, but how? Refinancing your home loan is surprisingly straightforward – here is our guide to switching home loans and getting the best out of your bank or lender.

The benefits of paying off your home loan may seem obvious – you get to reduce your mortgage repayments! However, you may wish to refinance your home loan to a lower rate but continue to pay the same repayments, which will allow you to pay off your mortgage faster. Refinancing can allow you to access better features such as an offset account; this is a transaction account linked to your mortgage, which allows you to minimise the amount of interest payable on your home loan. When interest is calculated on your home loan, your lender will subtract the balance of your offset account, which can save you thousands over the coming years.

When refinancing, the first step is to determine what you want to do! You could be wanting to pay off your home more quickly, access equity, or consolidate a debt. The second step is to crunch the numbers and review your current financial position – this may involve checking your credit score and your Loan to Value Ratio (LVR). If your credit score is good with an LVR below 80%, you will be in a strong position to refinance. Finally, the third step is to shop around and consider a variety of lenders. A rate reduction of just 0.5% will help you save thousands over the life of your loans!

Before diving in, it is important to be aware that there will be some costs associated with refinancing. These can include break costs, application fees, establishment fees, valuation fees, and lender legal fees. It is important to consider these costs when considering your financial position. Overall, refinancing can be incredibly positive and allow you to achieve your financial goals more quickly.

You can reach our Customer Success team via phone at 1300 403 204 or message the team at We look forward to helping you achieve your Smart Home Deposit goals!