Should You Refinance?
Home loan repayments are typically a household's largest regular expense. Many borrowers stay with the same product for years out of inertia — often paying significantly more than necessary. Reviewing your home loan every 2–3 years is a healthy financial habit.
- ✓ Get a meaningfully lower interest rate
- ✓ Access equity for investment or renovation
- ✓ Consolidate higher-rate debts
- ✓ Adjust loan features (offset, redraw, split)
- ✓ Fixed term expiring — explore your options
- ✗ High break fees on your fixed loan
- ✗ Credit history has recently deteriorated
- ✗ LVR above 80% — LMI may apply at new lender
- ✗ Uncertain income right now
- ✗ Planning to sell within 12 months
Costs of switching
Before refinancing, understand what it costs to exit your current loan. Typical costs include: discharge fee ($150–$400), loan establishment fee at the new lender ($600–$900), mortgage registration fee (typically $100–$200), and potential break costs if you are on a fixed rate. Total switching costs for a variable rate loan are usually under $1,500. Your Nuafi broker will calculate whether the savings outweigh the cost — and how long before you break even.
Switching lenders could save you hundreds of dollars per month on a large loan. A rate reduction of 0.5% on a $700,000 loan saves approximately $16,000 in interest over 5 years. Even after switching costs, the case to refinance is often compelling.
Refinancing Step by Step
Tell us what you want from the refinance — lower rate, equity release, better features. We review your current loan and run a health check.
We access 40+ lenders and 2,500+ products to shortlist the three best options for your needs, with a clear cost-benefit comparison.
Provide payslips, bank statements, current loan details and property information. We manage the application end to end.
The new lender values your property and issues a formal letter of offer. You read, sign and return.
Your new lender pays out your existing loan. A Discharge of Mortgage is lodged and your new loan starts.
Set a calendar reminder 90 days before your fixed rate term expires. Lenders often automatically roll borrowers onto an uncompetitive revert rate. With 90 days' notice you have time to compare alternatives and move without pressure.
Refinancing Checklist
- Last 2 payslips (or 2 years' tax returns if self-employed)
- 3 months of bank statements
- Most recent rates notice and loan statements for the existing property
- Current home loan account details
- Details of any other debts (car loans, credit cards, personal loans)
- Personal identification (passport or driver's licence)
- Council rates notice (for property valuation purposes)