Refinancing a home loan means replacing it with a new one that fits your situation better. Most people do it for one of five reasons. They want a lower repayment, a switch between fixed and variable, access to their equity, debt consolidation, or a shorter term. Whether it is worth it comes down to break-even thinking: the switching costs weighed against the interest you save.
There is no magic loan balance where a refinance suddenly pays off. It is a sum you do either way. You compare what the switch costs you now against what you save in interest over the years you have left to run. Features matter as much as the rate. An offset account, a redraw facility, or splitting part of the loan to fixed can be worth more to you than a slightly lower number on the front page.
Here are some of the most common reasons homeowners choose to refinance:
Use our refinancing calculator to see how much you could save.
At Fox Home Loans, we’ll help you compare options, simplify the process, and ensure refinancing works in your favour.
The clearest sign is a gap between your rate and the rate a new customer would be offered today for the same loan. Lenders rarely tell you when that gap opens. A fixed term ending is another trigger, because the loan usually reverts to a higher variable rate. If you have not reviewed your loan in a couple of years, you are probably paying more than you need to.
Timing matters most around the end of a fixed term. An existing pre-approval granted before a rate change is honoured by the lender, so a deal you lock in early can hold. Some lenders will also lock or hold a rate at submission for a fee, which protects you if rates move while your application is processed. Once that hold expires, the application is assessed at the new rate. We watch those dates so a good offer does not slip.
A quick way to check where you stand is our home loan health check.
Searching for the right home loan takes time and expertise. At Fox Home Loans, our brokers access exclusive rates and negotiate directly with our panel of 50-plus lenders to secure the best deals for you.
Repricing is asking your current lender to drop your rate so you stay. Refinancing is moving the loan to a different lender. Repricing is quicker when it works, but there is no guarantee your lender will agree. Many will not seriously look at it until you lodge a discharge authority. That form signals you are ready to leave, which feels backward after years of loyalty.
Lenders often keep their sharpest pricing for new customers, the front book, while existing borrowers on the back book drift onto higher rates. That is the loyalty tax, and it is real. The lever that moves your lender is credible competition, which is exactly what a genuine refinance offer puts on the table.
Part of what we do is make that case for you. We contact your current lender on your behalf to negotiate a reprice. In some cases we tell them a better deal has been found and you are ready to move. According to the Mortgage and Finance Association of Australia, 96% of brokers secured a discount from a borrower's existing lender within six months. The pressure to review your loan comes either way: the same body reports that refinancing blocked by serviceability rose from 24.4% to 49.2% in six months.
When you refinance, a lender weighs four things. First, how much you want to borrow against the property's value. Second, whether you can comfortably service the new loan. Third is what the switch costs, and fourth is how your current loan is structured. Matching your situation to a lender whose policy already fits is where most of the value sits.
Your bank's retention team has one job, which is to keep you on one of its own products. An online rate table shows you numbers with none of the context that decides whether you actually qualify. Neither can do what a broker does. We look at your full situation and match it to the right lender out of more than 50, including the ones that handle the awkward cases.
One customer had income split between an overseas job and an Australian one, and two brokers had already declined them before they reached us. We placed them with a lender that lends to 90% LVR and accepts foreign income. That cut their monthly outgoings by almost $4,000. The deal existed the whole time. It took knowing which lender would say yes.
The rest is the part most people dread, and it is the part we take off your plate. Give us a call and we'll handle the heavy lifting. We manage the paperwork, communicate directly with the lender, and keep you informed at every step. You do not need every document in perfect order before you talk to us.
A customer came to us to refinance their home, and the first valuation came back lower than we expected. Coming in short like that can push you over the LMI line and add thousands to the cost, so we did not accept it at face value. We went back to the valuer with five comparable sales they had missed. That lifted the valuation by $25,000, which was enough to take the customer out of LMI territory. It saved them $15,000 in lenders mortgage insurance and let us refinance them to a rate one percent lower than they were paying. Same property, same owner, a different result because someone pushed on the valuation.
Every refinance is assessed on its own merits, and valuations depend on the property and the method used. The point of this one is that a number you are handed is not always the final number.
For 20 years, since 2006, we have helped Australians get into property and stay in control of the loans that got them there. We are a mortgage broker, not a lender, so we work for you and compare more than 50 lenders to find the loan that fits. That independence is the whole point of using us.
Refinancing is one of several ways we help. See our home loan options: Pre-Approval, First Home Buyer, Refinance, Investor and Renovation.
Home loan pre-approval is a process by which a lender reviews your financial and credit history to determine how much money they would be willing to lend you for a home purchase. Pre-approval is not a guarantee that you will receive a loan, but it does provide an indication of how much you can borrow and the terms of the loan.
To obtain pre-approval, you typically need to provide the lender with information about your income, assets, and debts, as well as your credit score. The lender will use this information to assess your creditworthiness and calculate how much they are willing to lend you.
The pre-approval process typically takes a few days to a week, depending on the lender and the complexity of your financial situation. Once you receive pre-approval, you can start shopping for homes with the confidence of knowing how much you can afford to borrow.
Enquire for Pre ApprovalA first home buyer loan is a type of home loan specifically designed for individuals who are purchasing their first home. These loans typically have features that are intended to help first-time buyers enter the property market, such as lower deposit requirements, reduced or waived fees, and government incentives.
It’s important to do your research and compare the features and costs of different loans to find the one that best suits your individual needs and financial situation. Or leave it to the experts at Fox Home Loans. We’re here to help first home buyers navigate the complex road to owning their first home.
Enquire for your First Home LoanHome loan refinance is the process of replacing an existing home loan with a new loan from a different lender or with a different loan product from the same lender. The primary purpose of refinancing a home loan is usually to obtain a better interest rate or to access different loan features or benefits.
When you refinance a home loan, you essentially pay off the existing loan with a new loan, and the terms and conditions of the new loan may differ from those of the old loan. For example, you may be able to obtain a lower interest rate, switch from a variable rate to a fixed rate or vice versa, or access features such as offset accounts or redraw facilities.
Refinance your Home LoanBefore you start the process of switching home loans, it’s important to consider why you want to make the switch. Do you want to lower your interest rate, access different loan features, or consolidate debt? Understanding your reasons for switching can help you choose the right loan product and lender.
It’s important to note that switching home loans can be a complex process, and it may be helpful to seek advice from a mortgage broker like Fox Home Loans to ensure that you are making the right decision for your individual circumstances.
Switch Home LoansAn investment property loan is a type of home loan designed specifically for individuals who are looking to purchase a property for investment purposes rather than to live in themselves. These loans are typically used to purchase a property that will be rented out, with the rental income used to help repay the loan.
It’s important to carefully consider the costs and risks associated with investing in property and to do your research to find the right investment property loan for your needs. A financial advisor or mortgage broker may be able to provide guidance and advice to help you make informed decisions about your investment strategy.
Enquire for an Investment Property LoanA renovation home loan, also known as a home renovation loan or a home improvement loan, is a type of home loan that is specifically designed for borrowers who want to renovate or improve their existing home. These loans can provide funding to cover the cost of renovations or improvements, which can be a more affordable way to upgrade a home than selling and buying a new property.
If you are considering a renovation home loan, it’s important to have a clear understanding of your renovation plans and budget, and to work with a reputable lender or mortgage broker who can help you find the right loan product for your needs.
Enquire for a Renovation Loan
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Enter some basic details in our simple online form.
Discuss your refinance loan preferences and application information.
Discuss the features and benefits of your proposed refinance options.
With our technology, you can simply sign your loan documents electronically.
Your refinance transition will occur when settlement is finalised. It's that simple!
Enter some basic details in our simple online form.
Discuss your refinance loan preferences and application information.
Discuss the features and benefits of your proposed refinance options.
With our technology, you can simply sign your loan documents electronically.
Your refinance transition will occur when settlement is finalised. It's that simple!
Enter some basic details in our simple online form.
Discuss your refinance loan preferences and application information.
Discuss the features and benefits of your proposed refinance options.
With our technology, you can simply sign your loan documents electronically.
Your refinance transition will occur when settlement is finalised. It's that simple!
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The amount you can save by refinancing your home loan depends on your current interest rate, loan balance, remaining term, and the new loan’s rate and fees. Savings can come from lower interest rates, reduced fees, or cash-back offers.
At Fox Home Loans, we can review your situation and help you explore options across our panel of 50-plus lenders.
You can also use our Home Loan Refinance Calculator to see an estimate of your potential savings quickly and easily.
Refinance products are available to all clients. Sometimes commercial products can attract high fees to exit the commitment before the loan term matures. It’s worthwhile speaking to our Home Lending Specialist to weigh up your options, and what is going to be most viable.
Refinancing is available for most property loans, subject to terms and conditions. Reviewing your loan each year can show where you could save, whether through a lower interest rate, cashback offers, or a product with reduced fees.
Working closely with your mortgage broker and staying open to all options is key during the investment property refinancing process. By tailoring solutions to your profile, we ensure you have access to the most competitive products available when your loan is reviewed.
A mortgage broker like Fox Home Loans helps by acting as your advocate, comparing options from our 50-plus lenders to find the best deal for your unique situation. We will review your financial details, explain current market conditions, and manage the entire application process, saving you time and effort.
Debt consolidation is the process of rolling high-interest debts, like credit cards or personal loans, into your new home loan when you refinance. This combines multiple payments into a single, lower monthly repayment, potentially saving you money on interest and simplifying your finances.
