A calm refinancing checklist

How to decide whether switching loans is worth it, step by step.

Know what you have now

Find your current rate, loan type, remaining term, offset or redraw features, and whether any part is fixed. Fixed loans can carry break costs if you leave early, so ask your lender for an estimate in writing.

Count the costs of switching

Discharge fees, government registration fees, new application or valuation fees, and possibly lenders mortgage insurance if your equity is below the lender's threshold. Compare the total cost with the expected savings over a realistic period.

Check your current lender first

Many borrowers ask their existing lender for a rate review before moving. A broker can help you frame that request with a comparison in hand.

Watch the term

Refinancing onto a new 30-year term can lower repayments while increasing the total interest paid. If you can, keep repayments at or near your current level to stay on track.

Timeline

A straightforward refinance often takes a few weeks from application to settlement. Keep paying your current loan until the new lender confirms the discharge has settled.