Should You Refinance Your Mortgage
in Australia?

When refinancing is smart

Refinancing is usually a good idea when your new loan offers a lower rate, better features, or lower overall costs. The most common triggers are:

• Your fixed rate has ended — you may have rolled onto a higher variable rate without reviewing alternatives
• Interest rates have changed — you can get a significantly lower rate than your current loan
• Your financial situation has improved — higher income, better credit, or increased equity means you now qualify for better terms
• You want better features — access to an offset account, unlimited redraw, or a split loan structure
• You need to consolidate debt — rolling credit card or personal loan balances into your home loan at a lower rate
• You have not reviewed in 2+ years — competitive rates may have moved significantly since you last checked

What refinancing really costs

Not all refinancing costs are obvious. The main expenses to consider are:

• discharge fee — the cost to release your current mortgage
• application or establishment fee — a fee the new lender charges to set up your loan
• valuation and legal costs — conveyancing, title searches and state registration fees
• break costs — only for fixed-rate loans when you exit early
• redraw, offset or other product fees — some lenders charge extra for loan features you may need

Fixed-rate break costs are often the biggest unknown. Always ask your lender for a break cost estimate before you make a decision.

How to calculate whether refinancing is worth it

The simplest test is whether your savings are larger than your costs, and whether you will keep the loan long enough to recover those costs.

Break-even calculation: total refinancing costs ÷ monthly savings = months to break even.

If the break-even point is under 12 months and you plan to stay in the loan for at least two years, refinancing is usually worth considering. If it is over 24 months, the benefits are less clear.

What to compare when you refinance

Don’t just compare headline rates. Look at the full package:

• interest rate type and structure
• ongoing fees and repayment flexibility
• offset account and redraw availability
• break costs and exit penalties on existing loans
• the lender’s service and turnaround time

Resources & guides

If you want a faster answer, start with these articles:

• Should I refinance my mortgage in 2026?
• How much can you save by refinancing?
• What does it cost to refinance?
• Fixed vs variable home loan in 2026
• Refinancing after your fixed rate ends
• Refinancing to consolidate debt
• Refinancing with low equity

Frequently asked questions