Home Loan Refinancing
Reduce Repayments, Access Equity & Make Your Loan Work Harder
Your home loan is likely one of your largest financial commitments.
As rates, products and your circumstances change, the loan that originally suited you may no longer be competitive.
Refinancing replaces your existing home loan with a new loan, either with your current lender or another lender.
It may help you reduce interest costs, lower repayments, access equity or improve your loan structure.
At My Finance Consultants, we review your existing loan before comparing suitable alternatives across our panel of more than 40 lenders.
The objective is not simply to find a lower rate. We consider the total cost, loan features and longer-term financial impact.
Why Consider Refinancing?
Reduce Your Interest Rate & Repayments
A more competitive interest rate may reduce your repayments and the interest charged over time.
Even relatively small rate differences can become significant across a large home loan.
However, refinancing costs and the remaining loan term also matter.
We compare the interest rate, comparison rate, fees and expected savings before recommending a refinance.
Use our Mortgage Quote Calculator for an initial estimate of potential home loan savings.
Improve Your Loan Structure
Your current home loan may no longer provide the features or flexibility you need.
Refinancing can provide an opportunity to reconsider your loan term, repayment type and account structure.
This may include adding an offset account, changing loan splits or improving additional repayment flexibility.
The value of a feature should outweigh any additional rate or fees attached to it.
Pay Your Home Loan Off Sooner
Refinancing does not automatically shorten your mortgage.
However, combining a competitive rate with an appropriate loan term and additional repayments may reduce your repayment period.
Extending the loan back over a longer term can lower required repayments but increase total interest costs.
We compare both the immediate repayment and the longer-term cost of the loan.
Accessing Your Home Equity
Equity is the difference between your property's lender-assessed value and the debt secured against it.
If you have sufficient equity and borrowing capacity, refinancing may allow you to release additional funds.
Renovations & Property Improvements
Available equity may help fund renovations, extensions or other property improvements.
The lender will consider the requested amount, property value and your ability to service the increased debt.
Investment Property
Equity may also contribute towards the deposit and purchasing costs for an investment property.
The equity release remains additional debt and increases your overall repayments.
Where appropriate, separate loan splits can help keep different borrowing purposes identifiable.
Other Purposes
Selected lenders may allow equity to be released for other approved purposes.
This can include business funding or significant personal expenses, depending on lender policy.
We assess the purpose, repayment impact and available alternatives before recommending additional borrowing.
Use our Buying Power Calculator for an initial estimate of your purchasing position.
Refinancing & Debt Consolidation
Refinancing may allow eligible debts such as credit cards, personal loans or car finance to be consolidated into your home loan.
This can reduce the number of repayments you manage and may replace higher-rate debts with lower-rate secured borrowing.
However, a lower interest rate does not automatically mean the debt will cost less overall.
Extending short-term debt across a much longer home loan term can increase the total interest paid.
Debt consolidation also converts some unsecured debt into debt secured against your property.
If the home loan cannot be repaid, the property used as security may be at risk.
Where debt consolidation is appropriate, we compare the new repayments, loan term, fees and total estimated cost.
Maintaining higher repayments may help clear the consolidated portion sooner rather than extending it across the full mortgage term.
Offset Accounts, Redraw & Loan Features
Offset Accounts
An offset account is a transaction account linked to an eligible home loan.
Funds held in the account reduce the loan balance used to calculate interest.
For example, a $500,000 loan with $20,000 in a full offset would generally have interest calculated on $480,000.
An offset can be valuable when you maintain regular savings.
However, some offset-enabled loans have higher rates or additional fees, so the benefit should be compared with the cost.
Redraw & Additional Repayments
A redraw facility may allow you to access eligible additional repayments made directly into your home loan.
Access conditions, limits and fees vary between lenders.
Making additional repayments can reduce your loan balance and total interest costs where the product permits them.
We compare the features you are likely to use rather than recommending a more expensive loan simply because it includes additional features.
Understand the Cost of Refinancing
Refinancing can involve upfront and ongoing costs.
These may include lender discharge fees, application costs, valuation charges or other loan establishment expenses.
Fixed-rate loans may also involve break costs when repaid before the fixed period ends.
A lower interest rate may not justify refinancing if the expected savings are too small relative to the switching costs.
We calculate the estimated cost of changing lenders and compare it with the potential savings.
We also consider how long you expect to keep the new loan.
The aim is to determine whether refinancing leaves you in a better overall financial position, rather than simply obtaining a lower advertised rate.
Our Home Loan Refinancing Process
Home Loan Review
We review your current balance, interest rate, repayments, fees and loan features.
We also discuss what you want the refinance to achieve.
Property Equity & Borrowing Assessment
Where required, we estimate your property equity and borrowing capacity.
A lender valuation may be arranged to confirm the property value accepted for lending purposes.
Compare Suitable Lenders
We compare suitable options across our panel of more than 40 lenders.
The comparison considers rates, comparison rates, fees, loan features and lender policy.
We also compare the estimated savings against the cost of refinancing.
Application & Settlement
If you decide to proceed, we prepare the application and coordinate the supporting documentation.
We manage lender questions, valuation and approval requirements.
Once approved, the new lender generally arranges repayment of your existing home loan as part of settlement.
We remain available after settlement and can periodically review whether your loan remains competitive.
Frequently Asked Questions
How Much Can I Borrow When Refinancing?
Your borrowing capacity depends on your income, expenses, debts, dependants and overall financial position.
Accessing additional equity also depends on the lender's property valuation and maximum acceptable LVR.
Our Borrowing Power Calculator can provide an initial estimate.
What Is Home Equity?
Home equity is the difference between your property's value and the debt secured against it.
Not all equity is automatically available to borrow.
The lender must also be satisfied that you can afford any additional debt.
What Costs Are Involved in Refinancing?
Costs can include discharge fees, application or establishment costs and valuation fees.
Fixed-rate break costs may also apply.
We compare these costs against the expected savings before recommending a refinance.
How Much Can I Save by Refinancing?
The potential saving depends on your current and proposed rates, loan balance, fees and remaining loan term.
We assess both your repayment savings and the longer-term cost of switching.
Can I Access Equity When Refinancing?
Potentially. The amount available depends on the lender's valuation, your existing debt, borrowing capacity and proposed use of the funds.
Can I Consolidate Other Debts Into My Home Loan?
Potentially. However, consolidating shorter-term debts into a mortgage can increase total interest if they are repaid over a longer period.
We compare the repayment structure and overall cost before recommending consolidation.
Can I Refinance a Fixed-Rate Home Loan?
Yes, but break costs may apply if you refinance before the fixed period ends.
The cost should be confirmed before deciding whether refinancing is worthwhile.
Can I Refinance With Credit Issues?
Potentially. Available options depend on the nature, severity and timing of the credit issue and your current financial position.
Some mainstream or specialist lenders may consider applications that do not meet another lender's standard credit policy.