Potential reasons to refinance

Get peace of mind

To get peace of mind with a fixed rate, or to reduce your monthly payments.

Take advantage of different features

To select a home loan with more suitable features such as a redraw facility.

Consolidating other debts

To consolidate credit cards, personal loans or other debts to reduce your interest rate and monthly repayments.

Unlocking equity

To unlock the equity in your home to finance a renovation, or free up some capital for property investment.

What is refinancing?

Refinancing FAQs

What is refinancing?

Refinancing lets you change your home loan to suit your new circumstances. Mortgage Choice recommends an annual Home Loan Health Check by your local Mortgage Choice expert to assess whether the original home loan you chose is still the most suitable option for you.

How does refinancing work?

When you take out a new home loan, you use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender, but many people refinance with the lender they've been using for years. If you move to a new lender, that lender will take care of paying out your existing loan.

If you are unsure whether refinancing is right for your current situation, refer to our sections on Why Refinance?, Refinancing Costs, and Potential Savings.

What type of things do people refinance for?

Home loan refinancing may be used for different reasons including:

- Renovating your home or other home improvements such as a pool.

- Paying off your debts such as credit cards by rolling them into your home loan.

- Obtaining a cheaper rate, even if it means giving up a few loan features.

- To raise cash for a purchase such as a car.

- You want to switch from a variable rate to a fixed rate, perhaps because you can want to reduce the risk of higher repayments.

How will refinancing benefit me?

Refinancing can be a smart way to manage your money. Here are a few reasons why you may want to refinance:

- To get peace of mind with a fixed rate

- To access a lower interest rate and reduce your monthly payments

- To gain the flexibility to pay off your loan faster

- To consolidate credit cards, personal loans or other debts to reduce your interest rate and monthly repayments

- To unlock the equity in your current property to finance a renovation, purchase an investment property or free up some extra cash.

Your local Mortgage Choice broker can step you through the process and work out your equity to help you with making a decision.

Should I refinance with interest rate rises?

When the Reserve Bank raises interest rates, banks and other lenders usually follow suit by increasing your mortgage repayments. Refinancing your home loan from a variable to a fixed rate can provide certainty with your repayments.

Your local Mortgage Choice broker can perform a free Home Loan Health Check to see if your current home loan is still the most suitable option for you after an interest rate rise.

What do I need to consider when refinancing?

When done properly under the right circumstances, loan refinancing can be very beneficial. However, there are drawbacks involved - namely the cost. The reasons for refinancing should be legitimate and the long term savings should definitely outweigh the short-term costs. For more details, see our sections exploring Refinancing Costs and Potential Savings.

Don't want to switch lenders? See if we could negotiate a better deal for you on your current loan.

Contact us online

Why choose Mortgage Choice?

More choice

We can compare hundreds of highly competitive home loan options from a wide choice of lenders, including the big four banks.

No cost to you

Our home loan service is no cost to you because the lenders pay us, so why not put a broker to work for you?

Less stress

A Mortgage Choice broker can give you a free home loan health check in just one hour, and if you decide to switch, we do all the legwork.


Appointments to fit your busy lifestyle, at the time and place that suits you.

Get a free home loan health check

Home loan health check

Even if you’re not ready to refinance right now, it makes sense to give your loan an annual Home Loan Health Check to ensure it still meets your needs. This is an obligation-free service available from your local Mortgage Choice broker. Best of all, there's no charge to you for our home loan service because the lenders pay us.

Find out more

Could you save?

If you’re looking to reduce your monthly repayments, you’ll need to balance the costs of refinancing with the potential benefits. We explore the costs involved as well as the potential savings.

Refinancing Guide

Thinking of switching lenders? Our guide explains the reasons, costs and steps involved in refinancing your home loan.

Step-by-Step Buying Guides

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What our customers say

"I would like to thank Mortgage Choice. We still can’t believe how easy it was. We had thought about the switch for so long but with two young kids, it’s hard to find the time. Not only did our broker arrange an appointment suited around us but within a short time we felt completely comfortable and at ease with our refinance options. He gave us options which empowered us with choices that saved real time, lots of money and much anguish. We are so happy with our choice of lenders; we wonder why we didn’t visit Mortgage Choice earlier."

Nick and Angela Vlahadamis

See if you could save on your home loan. Talk to us today.

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