How to refinance your home loan, step by step.

Written by George KarpathakisCo-Founder & Director, LendQuest

Thinking about switching? See how our free refinance review works.

Step 1: Check what you have now

Find your latest home loan statement and note the balance, interest rate, repayment amount, remaining term and any fees. If any part is fixed, ask your lender for the break cost. Check whether you have an offset account or redraw balance you use.

Step 2: Decide what you want the new loan to do

Most people refinance for a lower rate, but it's also a chance to change structure. You might want to consolidate debts, release equity for a renovation, add an offset account, split between fixed and variable, or shorten the term. Being clear on the goal narrows the options.

Step 3: Ask your current lender

A retention offer from your current lender can sometimes get you most of the saving without switching. It helps to have real offers from other lenders when you ask. If they match, you avoid the paperwork. See refinancing your home loan.

Step 4: Compare lenders on total cost

Compare the rate, the comparison rate, annual and package fees, offset and redraw features, and any cashback. Then subtract the cost of switching: discharge fee, government registration fees, any break cost and any new application or valuation fee. See cashback offers, judged properly.

Step 5: Apply

You'll need photo ID, recent payslips or tax returns, your current loan statements, statements for other debts and a summary of living expenses. The new lender assesses you as a new borrower, so your income and debts need to support the loan at their assessment rate. See what documents you need.

Step 6: Valuation and approval

The new lender values the property. If the valuation is lower than expected, your loan-to-value ratio rises, which can affect pricing or LMI. Once the valuation and credit assessment are done, the lender issues formal approval and loan documents for you to sign.

Step 7: Discharge and settlement

You sign a discharge authority for your current lender. This is often the slowest step, so it's worth lodging early. On settlement day the new lender pays out the old loan and the new loan starts. See how long refinancing really takes.

After settlement

Set up your new repayments and move any offset savings. If your old loan had direct debits or a redraw balance, update or move them. If you can, keep paying the same amount as before so the lower rate shortens your loan.

Let us handle the switch

We compare 40+ lenders, include the switching costs and manage every step through to settlement. If staying put is better, we'll tell you.

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George Karpathakis, Co-Founder & DirectorYour enquiry comes straight to our team. We usually reply within one business day.

Frequently asked questions

How long does refinancing take?

Usually two to four weeks for a straightforward refinance. Discharge from your old lender and valuations are the most common delays.

Do I have to pay anything to refinance?

Usually a discharge fee to your current lender and government registration fees. Break costs apply if you leave a fixed rate early.

Can I refinance with the same lender?

Yes. Asking for a better rate or switching products with your current lender is often called a repricing or internal refinance.

This guide is general information only and does not take your personal circumstances into account. It is not financial, credit, tax or legal advice. Examples are illustrative only. Government schemes, lender policies and rates change over time and eligibility criteria apply. Speak with us for advice tailored to your situation. LendQuest Pty Ltd is a credit representative (555514) of BLSSA Pty Ltd, Australian Credit Licence 391237.