Refinancing is worth assessing when it may improve your loan's cost or suitability after switching costs and risks are considered. Repricing your existing loan may also be an option.
Put the existing loan on the table first
Record the current balance, rate, repayment type, remaining term, ongoing fees and useful features. Check whether your rate is fixed, variable or split. Where relevant, ask about break costs and the current payout amount.
Compare on the same basis
A proposed loan with a longer term can have a lower monthly repayment without being cheaper overall. Compare a like-for-like term as well as the offered repayment. Include fees and any cost of features that you may not use.
Work out the recovery period
A simple starting calculation divides one-off switching costs by the estimated monthly saving. For example, assumed switching costs of $1,200 divided by an assumed $100 monthly saving gives 12 months. This is arithmetic, not an offer: changing rates, fees and timing can alter the result.
Do not ignore the option of staying
Ask whether the current lender can improve its pricing or structure. A good review can end with staying, switching or deciding to revisit the question after a particular event. The point is a sound decision, not a transaction for its own sake.
Check what an application involves
Another lender may assess income, commitments, credit history and the security differently. Allow for valuation, verification and settlement requirements. Do not assume a refinance is automatic because repayments have been maintained.
Sources & further reading
Prepared 4 October 2026. General information; check current rules for your circumstances.