Question 1

Is it worth refinancing for a 0.5% rate drop?

Accepted Answer

In most cases, yes. On a $500,000 loan over 25 years, a 0.5% reduction could save you roughly $150 per month and over $40,000 in interest over the life of the loan. We can run the exact numbers for you to ensure the savings outweigh any switching costs.

Question 2

How much does it cost to refinance?

Accepted Answer

The costs are usually minimal compared to the savings. You may have a "Discharge Fee" from your current lender (typically around $350) and potentially an "Application Fee" for the new loan. However, many lenders waive application fees for refinancers, and some even offer "Cashback" incentives that more than cover these costs.

Question 3

Will I have to pay Lenders Mortgage Insurance (LMI) again?

Accepted Answer

Generally, you only pay LMI if your Loan-to-Value Ratio (LVR) is above 80%. If your property has increased in value or you’ve paid down enough debt so that you owe less than 80% of the property’s current value, you likely won't pay LMI. If you are still above 80%, LMI might apply, and we would need to calculate if the refinance is still cost-effective.

Question 4

Can I refinance if I'm on a fixed rate?

Accepted Answer

Yes, but you may need to pay "Break Costs" (or Early Repayment Fees) to leave your fixed rate early. These costs depend on how much time is left on your fixed term and current market rates. I can ask your current lender for a payout figure so we can see if the new rate savings are enough to cover the break cost.

Question 5

How long does the refinancing process take?

Accepted Answer

A typical refinance takes between 2 to 4 weeks from application to settlement. However, with the new "FastRefi" processes used by many lenders, some refinances can be settled in days once formally approved. I will manage this timeline to ensure your old loan is paid out smoothly.

Question 6

Can I consolidate my credit card debt when I refinance?

Accepted Answer

Yes, this is a very common strategy. By rolling high-interest debts (like credit cards at 20%+) into your home loan (at a much lower rate), you can significantly reduce your total monthly repayments. This frees up cash flow, which you can then use to pay off your home loan faster.

Question 7

Will refinancing hurt my credit score?

Accepted Answer

Making a refinance application does leave a "credit enquiry" on your file. One or two enquiries are normal and have a minor impact. However, applying to many banks at once can hurt your score. That’s why I investigate the policies first and only submit an application to the lender we are confident will approve you.

Question 8

Do I need a valuation to refinance?

Accepted Answer

Yes, the new lender will need to value your property to confirm its current market value and your LVR. In many cases, this is now done via an automated "Desktop Valuation" (AVM), which is instant and free. For unique properties, a valuer may need to visit, which the lender usually pays for.

Question 9

Can I pull out cash (equity) when I refinance?

Accepted Answer

Absolutely. This is called a "Cash Out" refinance. You can increase your loan limit to access equity for renovations, buying a car, or even a deposit for an investment property. The lender will simply want to know the "purpose" of the funds.

Question 10

What documents do I need to provide?

Accepted Answer

The documentation is similar to your original loan but often simpler. You’ll typically need your last 2 payslips, 3 months of bank statements (showing your salary and expenses), and 6 months of statements for your current home loan to show a perfect repayment history.

Question 11

Can I refinance if I have changed jobs recently?

Accepted Answer

Yes, but lender policies vary. Some require you to be in your new role for 3-6 months. Others are comfortable from Day 1 if you are in the same industry and have no probation period. I can direct you to the specific lenders who accept new employment income.

Question 12

Should I fix my rate when I refinance?

Accepted Answer

This depends entirely on your goals and risk tolerance. Fixed rates offer certainty for your budget, while variable rates offer flexibility (like offset accounts and no break fees). Many clients choose a "Split Loan," fixing a portion (e.g., 60%) and keeping the rest variable to get the benefits of both.

Question 13

Do I need a solicitor to refinance?

Accepted Answer

In most standard refinance cases, no. The new lender’s settlement team will handle the transfer of the mortgage title from your old bank. You simply sign the new loan documents. You generally only need a solicitor if you are changing the names on the title (e.g., adding a spouse).

Is Your Current Home Loan Still a Good Deal?

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THE LOAN INVESTIGATOR

Why Consider Refinancing?

Refinancing isn’t just about finding a lower rate. It’s about making your loan work better for you.

Lower Your Rate

Improve Cash Flow

Consolidate Debt

Access Your Equity

Get a Better Loan

End a Fixed Rate

Find Out How Much You Could Save

A no-obligation chat could be the most profitable couple of minutes you spend all year.
Let’s find out if you’re on the best deal.

Common Questions About Refinancing Your Home Loan