The short answer
A rate review asks your current lender to reconsider your pricing. Refinancing replaces your loan with another loan, usually involving a new assessment. A review may lead to staying where you are; changing lenders is not the goal in itself.
Begin with the loan you already have
Check the current interest rate, remaining balance, remaining term, repayment type and features you use. Ask your lender whether it can offer a better rate. Keep any offer in writing and check whether it changes fees or product features. A lower advertised rate is not necessarily available for your circumstances.
Look at the full cost of moving
Compare application, valuation, discharge and other costs that apply, including any fixed-rate break costs and lenders mortgage insurance where relevant. Compare loans over a consistent term: extending the loan can lower monthly repayments while increasing total interest. A simple break-even estimate divides switching costs by expected monthly savings, but it relies on assumptions and does not capture every difference.
Think beyond the next repayment
Make a list of the features you actually need, such as access to an offset account or the ability to make extra repayments, and check their terms and fees. Consider upcoming changes: a move, parental leave, a new job or business plans. Lower repayments alone do not show that a loan is more suitable.
Understand what a new assessment involves
A new lender will assess the application under its requirements. The property valuation, income, expenses and existing commitments matter. Having maintained repayments does not guarantee that another lender will approve a refinance. Do not close or discharge the current loan before the new arrangements are confirmed through the agreed process.
Bring both options into one conversation
FRF can discuss your existing loan and the alternatives available through our panel, including whether a change is worthwhile. Bring your current details and any offer you have received. We will work through your objectives and the questions that need checking. If repayments are becoming difficult, contact your current lender promptly about support rather than relying on refinancing as the solution.
Independent information
ASIC Moneysmart: switching home loans. Requirements can change. Your circumstances need to be assessed before any recommendation or application.
