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Refinancing in plain English

Refinancing, properly run

A plain-English read on refinancing your home, car, or business loan in Australia. How it works, when it pays, what it costs, and how to compare without the broker pitch.

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Typical refinance savings
$600k home loan
7.0% to 6.0%
$400
saved per month
$45k car loan
9.5% to 6.5%
$70
saved per month
$200k business loan
8.0% to 6.5%
$170
saved per month

Indicative savings only. Actual savings depend on your loan and lender.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.

Refinancing Guides

Refinancing by loan type

The mechanics of refinancing differ by product. Read the guide that matches your loan.

Most read

Home loan refinancing

How a home loan refinance works, what it typically saves, and when cashback offers are worth chasing. Includes the trade-offs most articles skip.

  • Rate comparison explained
  • Cashback offers, when they're worth it
  • Debt consolidation trade-offs
Learn More

Car loan refinancing

When refinancing a car loan actually saves money, and when it doesn't. How exit fees, term resets, and balloon payments interact.

  • When it makes sense (and when it doesn't)
  • Exit fees and break costs
  • Same-day pre-approval typical
Learn More

Business & asset refinancing

Refinancing commercial property, equipment, or business loans, what changes when the security or borrower structure is different from a home loan.

  • Equipment & asset refinancing
  • Commercial property loans
  • Cash-flow restructuring
Learn More
Why Refinance

Four common reasons

The right reason depends on your goals. The guides explain the trade-offs in each case.

Lower interest rate

Save on interest a year if your current rate is above the market.

Cashback offers

Many lenders offer $2,000–$4,000 cashback for refinancing in.

Consolidate debt

Roll high-interest debts into your home loan at a much lower rate.

Access equity

Unlock equity in your home for renovations, investment, or other goals.

How to Approach It

A four-step framework

The same approach works whether you DIY, stay with your bank, or use a broker.

1

Run the numbers

Use the refinance calculator to estimate your potential savings. If the savings don't cover the costs of switching, refinancing isn't worth it.

2

Read the trade-offs

Cashback offers can mask higher rates. Resetting your term resets your interest cost. Our guide explains what to actually look for.

3

Decide your approach

Go direct to a lender, stay with your existing bank and renegotiate, or hand the comparison to a broker. None is automatically right.

4

Optional broker match

If you'd rather have a licensed broker compare lenders for you, opt in below. The broker is paid by the lender, no cost to you.

Run the Numbers First

Refinancing FAQs

How much can refinancing save me?
Savings depend on your current rate, loan size, and term. As a guide, switching from 7.0% to 6.0% on a $600,000, 30-year home loan saves around $400 per month, or roughly $144,000 over the life of the loan. Use our refinance calculator for a personalised estimate based on your specific numbers.
What are the costs of refinancing?
Typical refinancing costs include a discharge fee from your old lender ($100–$400), settlement fees ($300–$600), and a new mortgage registration fee (varies by state). Many lenders waive their establishment fees and offer cashback to offset these, but cashback often comes with a higher rate, so always quantify the net position over 3–5 years.
Will refinancing hurt my credit score?
A formal refinance application is recorded as a credit enquiry, which typically has a minor and short-term impact on your score, especially when offset by improved repayment history on the new loan. Multiple applications in a short window are more likely to drag your score down, so it pays to compare before applying.
How long does refinancing take?
For a straightforward home loan refinance, the full process takes about 3–6 weeks from application to settlement. Car loan refinances are usually faster, often 1–2 weeks. Complex situations (low-doc, multiple properties, restructure) take longer.
Can I refinance with bad credit?
Yes. Specialist non-bank lenders refinance loans for borrowers with defaults, missed payments, or limited credit history. Rates are higher than prime lending, but refinancing from a very high-rate existing loan can still meaningfully reduce monthly repayments. Read our bad-credit guides for the trade-offs.
Do I need a broker to refinance?
No. Many people refinance direct with a lender or by renegotiating with their existing bank. A broker can be useful for complex situations (multiple properties, low-doc, recent ABN), or if you'd simply rather hand the comparison work over. If you'd like to be matched with a licensed broker, the form is one click away.
Free · No obligation · One match

Calculate your savings first

Run the numbers on the refinance calculator before you do anything else. If the savings don't cover the costs, the answer is to stay put.

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