Refinance your home loan & compare interest rates in July 2023

How to compare the home loans above

The table above contains a selection of home loans suitable for different borrowers, whether you're refinancing an owner-occupier loan or an investment loan.

If you enter your current loan amount and interest rate in the fields above the table you can see how much you could save with a new loan. Then you can sort all the loans in the table by rate, fees or the amount saved.

The benefits of refinancing

• Get a lower interest rate. Refinancing to a lower interest rate will lower your monthly mortgage repayments. Even a slightly lower rate can save you hundreds or even thousands of dollars a year.
• Get more mortgage features. Get features like additional repayments, a redraw facility, portability or a 100% offset account.
• Unlock equity. If you've built up equity in your home you can refinance and increase your loan size to borrow a bit more.
• Consolidate debt. Refinance multiple debts into your mortgage and pay it off with a single repayment and a lower interest rate.

How to refinance a home loan in 5 steps

Refinancing means switching your current home loan to a new one.

And switching is easier than you think:

1. Check your current interest rate. Look at competitive mortgage rates and see if yours is too high. You could ask your lender to lower your rate or you could start looking for a better deal.
2. Compare home loan options. If you do decide to switch lenders, look for a suitable loan with a better rate and features you need.
3. Crunch the numbers. Work out the costs of your new loan, including application and ongoing fees, and make sure the new loan really is a better deal. Check the exit costs from your current loan too (there may be a discharge fee or break costs).
4. Apply for the new home loan. Collect your mortgage documents, submit your application and then wait for approval from the new lender. This can take a few hours to compile, but it's a worthwhile investment considering the potential savings.
5. Exit your current loan. When you refinance, your new bank will notify your current lender and you can discharge your mortgage.

Refinancing is quite a straightforward process, although it requires quite a bit of paperwork to submit a loan application. If your situation is complicated or unusual, you may want expert refinancing guidance, so you could reach out to a mortgage broker.

Read our detailed, step-by-step refinance guide

How to find the best refinance rate

To get the best refinance rate, take the following steps:

Look for a cheaper rate

The lower the interest rate the more money you save. This is true for every borrower and it's the first thing most refinancers look for.

Even just a small difference in rates can end up saving you hundreds of dollars a year in repayments.

Make sure the loan meets your needs

You also need to refinance to a home loan that suits your needs. If you need a loan with an offset account, you want to avoid a basic loan that doesn't have this feature.

A package loan might look attractive, but it might have high annual fees and products you don't need.

Avoid a loan with high fees

There are usually 1 or 2 fees with any new home loan. But the cost of fees can vary widely, from practically nothing to hundreds of dollars. It's worth keeping loan fees in mind when preparing to refinance your home loan.

My top refinance tip is to not be lured into a substandard loan. Weigh carefully whether 'honeymoon' discounts and cashbacks are worth it. The way you'll save the most money is with the lowest rate over the long term. The comparison rate, which takes into account fees and charges, will help you understand this.

Nicole Pedersen-McKinnon
Freelance finance journalist

How much does refinancing cost?

• Discharge fees. Lenders often charge a fee to end a home loan.
• Government fees. Refinancers may have to pay state government fees to de-register their old loan and register the new one.
• Loan fees. Some lenders charge application or settlement fees ranging from $250-$600 or charge ongoing fees.
• Fixed rate break costs. You may have to pay an exit fee for breaking the loan when refinancing a fixed rate loan. Ask your current lender for a break fee estimate before committing to refinancing.

Here's a quick example of switching costs in a hypothetical refinance scenario (using government fees from Victoria):

Learn more about calculating your refinancing costs

Why you can trust Finder's home loan experts

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We're here to helpSince 2014, we've helped 150,000+ people find a home loan by explaining the nitty gritty details simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

Your home loan refinance questions answered

• When you should not refinance?

  There are some rare situations where refinancing could cost you more than you could save by switching:

  • Your fixed rate break costs are too high. If the cost of breaking a fixed rate loan is too high, then refinancing may not be worth it.
  • Your equity is below 20% of the property's value. If you own less than 20% of the property at its current value, then you will have to pay lenders mortgage insurance when you refinance. Even if you paid it for your original loan.
  • Your loan amount is small or you're selling soon. If you don't have much left to repay on your home loan, then the savings from refinancing might not be worth the hassle. If you're planning on selling within the next 6 months, then the effort and cost involved in refinancing could also cancel out any financial rewards.

• Can I refinance a fixed rate loan?

  You can refinance a fixed rate home loan, but you have to pay a break fee for exiting the loan early during the fixed period. If you are close to the end of the fixed period on your loan, then this fee will be smaller, but if you have a few years left, it could cost thousands. Your current lender can provide you with a break cost estimate to help you decide if the cost is worth it.

• Is it still worth it to refinance now?

  There's never really a bad time to refinance as long as you can find a loan with a lower interest rate that's more suited to your current needs.

  When interest rates are falling, switching can unlock big discounts. When rates are rising, you can still get a better deal if you find a lender with a more competitive offer.

  The lending market is a crowded field, and lenders are frequently offering lower rates to entice new business.

• How much equity do I need to refinance?

  Theoretically, you can refinance your loan no matter how much or how little equity you have. But if your equity is under 20% of your remaining loan amount, then refinancing, while possible, gets expensive. This is because your new lender will charge lenders mortgage insurance if your equity is below 20%.

• Should I refinance to a new 30-year loan?

  Most refinancers switch from a 30-year home loan to another 30-year loan. Even if they're many years into their original loan. That's fine and will keep your monthly repayments low. But you could save more money in the long run by switching to a shorter loan term.

  If you refinance 5 years into a 30-year loan term, you could switch to a 25-year loan. You'd pay more each month but end the loan at the same time as your original loan started.

  It's really a question of what works better for you. Do you want lower monthly repayments but a longer loan term (and more interest overall)? Or do you want to get a lower rate and pay the loan off faster with a shorter term?

  You can also stick to a new 30-year loan term but make extra repayments or build up offset savings. This has the same effect but gives you more options.

• What is the current refinance rate?

  Every lender sets its own interest rates for home loans. There's no one refinance rate. In fact, most lenders don't even have specific loans with rates just for refinancers (most loans are available to both new borrowers and people refinancing existing loans).

  Right now interest rates for owner-occupiers are as low as 5.59%.

• Do I need to refinance when getting divorced?

  When couples get divorced, there are hard decisions to make around property. You may decide to sell the home and share the profits, or let 1 person keep it.

  If 1 person decides to buy out the other person's half, you will need to refinance the mortgage when transferring the property title. Otherwise, the person selling would still be on the mortgage.

  You can also decide to keep the home loan as it is and continue to make repayments.

  It's always better if a divorcing couple can agree amicably on what to do with their property. But it's still a really good idea to get legal advice.

• How often should I refinance?

  You can refinance as often as you like, but given the time involved and the cost of registering a mortgage, it doesn't make sense to switch frequently. You're better off finding a good deal that will hopefully remain a good deal for a few years. If your rate creeps up and you find better options, then it's time to ask your lender for a discount. And if that doesn't work, then you should switch.

• Can I refinance my home loan with the same bank?

  Yes. You can switch to a better loan with your current lender. Or you may be converting a property from your residence into an investment property. In this case you'd need to refinance your home loan to an investment loan.

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