Is your mortgage still working for you?
Three rate hikes this year have changed what Australian homeowners are paying, and what they could be saving. If your rate hasn't been reviewed in the last 12 months, there's a good chance you're paying more than you need to. See what's available right now and find out in minutes.
Enter your loan details. Bheja does the rest.
30 Jun 2026
What is refinancing?
Refinancing simply means replacing your existing home loan with a new one. Think of it as shopping around for a better deal on your mortgage. You can refinance with your current lender or switch to a completely new financial institution. The goal is usually to secure loan terms that better suit your current financial situation and future goals.
Why do Australian homeowners refinance?
Most refinancers switch because of a combination of changing circumstances, whether their rate feels too high, a fixed term is ending, or life has simply changed since they took out the original loan.
To secure a lower interest rate
If your current interest rate is higher than what lenders offer new customers, you may be paying a premium. Lenders often offer lower advertised rates to attract new business compared to what existing customers pay. On a large loan balance, even a small percentage difference can add up to hundreds of dollars a month in extra interest charges.
Because a fixed rate is ending
When a fixed-rate term expires, lenders typically roll the loan onto a standard variable rate, which may not be their most competitive option. Reviewing options 60 to 90 days before a fixed term ends can give you time to compare market rates and switch without pressure.
To access equity
If your property has increased in value or you've paid down your home loan over time, you may have built up equity. Refinancing could allow you to unlock some of that equity to fund home renovations, invest in another property, or cover other major expenses.
To consolidate debt
Refinancing may allow you to roll higher-interest debts, such as credit cards or personal loans, into your home loan. This can simplify your finances with a single repayment and may reduce your monthly repayments or interest rate. However, debt consolidation isn't always the cheapest option. Moving short-term debt into a longer home loan can increase the total interest you pay over time, so it's important to weigh up the long-term costs before refinancing.
To find features that match your lifestyle
A home loan that suited you a few years ago may no longer meet your needs today. For example, if you've built up savings, an offset account could help reduce the interest you pay. If your income has increased, you might want the flexibility to make extra repayments. Or if you're planning renovations, a redraw facility could become more valuable. Refinancing gives you the opportunity to choose a loan with features that better match your current financial situation and goals.
Is refinancing the right move for you right now?
The honest answer is: it depends on your individual circumstances, not just what the market is doing. But the current environment does make it worth checking your options, even if you refinanced or reviewed your loan 12 months ago.
The RBA raised the cash rate three times in 2026, in February, March and May, taking it to 4.35%. Since then, lenders have continued to adjust their pricing, borrowing conditions and product offerings. That means the home loan that was competitive a year ago may not be the most competitive option today.
0.5–1%+
The typical gap between what existing borrowers pay and what new customers are offered by the same lender
12 months
How long most homeowners go without reviewing their home loan rate, often much longer!
$190/month
What a 0.5% rate gap costs on a $600,000 loan — every month, without noticing
When does refinancing make sense?
✅ Consider it if...
- Your rate hasn't been reviewed in over 12 months: Lenders quietly offer better deals to new customers while loyal borrowers stay put. A lot can change in a year.
- Your fixed rate is ending soon: Don't wait for the automatic rollover to a higher variable rate. Start comparing 60–90 days before your term ends.
- There's a gap of 0.5% or more between your rate and the market: On a $600,000 loan that's around $190 every month leaving your account for no good reason.
- Your equity has grown significantly: More equity unlocks better rates and may eliminate LMI entirely if you're still paying it.
- You want to access equity for a specific purpose: Renovations, investment, or consolidating other debt at a lower rate.
❌ Hold off if...
- You're planning to sell within 2 years: Switching costs typically take 18–24 months to recover through savings. Run the numbers first.
- You're on a fixed rate with significant break costs: Get the break fee figure in writing from your lender before you decide anything.
- Your income or employment has recently changed: Lenders assess your current stability. A recent change can affect approval or the rates you qualify for.
- The rate gap is under 0.3%: Below that threshold, switching costs often outweigh savings, particularly on smaller loan balances.
- You've refinanced in the last 6 months: Multiple credit applications in quick succession can affect your credit score.
What does refinancing actually cost?
Refinancing a home loan isn't free. Depending on your current lender, your new lender and the type of loan you choose, there may be several upfront costs to consider. The good news is that these costs are often outweighed by the savings if you're able to secure a lower interest rate, but it's important to compare both before making a decision.
For many borrowers, total switching costs (excluding any break fees or LMI) range from $500 to $1,500. Whether refinancing is worthwhile depends on how quickly those upfront costs are offset by the savings from a lower interest rate or reduced fees.
What about cashback offers?
Some lenders offer cashback incentives to attract borrowers who refinance. While an upfront payment can help cover switching costs, it shouldn't be the only factor in your decision.
A loan with a slightly lower interest rate or lower ongoing fees could leave you better off over the long term than a larger cashback offer. Before refinancing, compare the overall cost of the loan, including the interest rate, fees, features and any cashback, over the next few years rather than focusing on the upfront incentive alone.
Should you negotiate with your lender before refinancing?
In many cases, yes. But before you pick up the phone, it's worth understanding what a competitive rate actually looks like for your circumstances.
Many lenders will try to retain existing customers by offering a lower rate when they're considering leaving. Knowing what you can get outside your bank puts you in a much stronger negotiating position than simply asking for a discount.
Before speaking to your lender, check:
- Your current interest rate
- Your remaining loan balance
- The rates and products you may be eligible for today
If your lender matches a genuinely competitive offer, you could avoid the time and paperwork involved in switching. If they can't, or the difference is only marginal, refinancing may be worth exploring.
The important thing is not to assume your lender is already giving you their best rate. A quick mortgage health check can help you understand whether your current loan is still competitive and give you the confidence to negotiate, or move if there's a better option elsewhere.
How do you refinance your home loan?
Once you've decided refinancing is right for you, the process is usually straightforward and takes around four to six weeks.
- Check your options. Compare your current loan against what's available and decide whether refinancing is likely to leave you better off.
- Choose a lender and apply. You'll provide details about your income, expenses, existing home loan and property. Your new lender will usually arrange a property valuation and assess your application.
- Your new lender handles the switch. Once approved, your new lender works with your existing lender to pay out your current loan and arrange settlement. In most cases, you won't need to coordinate the process yourself.
- Your new loan begins. After settlement, your old loan is closed and repayments move to your new lender under your new loan terms.
How Bheja simplifies refinancing
Instead of spending hours researching lenders yourself, Bheja starts with a free Home Loan Health Check.
Simply enter your current loan details and Bheja's AI compares your mortgage against live rates from more than 100 lenders, helping you understand whether your loan is still competitive and which products may better suit your circumstances.
If you decide to refinance, you can securely connect your bank account using Open Banking, allowing your financial information to be shared with your consent. This helps reduce manual paperwork, speeds up the application process and enables Bheja's brokers to manage the refinance through to settlement.
Even after your refinance is complete, Bheja continues to monitor your mortgage, alerting you when your loan may no longer be competitive so you can review your options again.
Will refinancing affect your credit score?
Applying to refinance your home loan usually involves a credit enquiry, which may have a small, temporary impact on your credit score. This is a normal part of the application process and is unlikely to have a significant effect if you have a good credit history.
What matters more over the long term is how you manage your new loan. Making your repayments on time and keeping your overall debt under control are generally much more important factors in your credit score than a single home loan application.
Tip: Comparing home loans or getting a mortgage health check won't affect your credit score. A credit enquiry is typically only recorded when you submit a formal home loan application with a lender.
Pravin Mahajan
Founder @ Bheja.ai | Mortgage Broker | Ex-CTO RateCity & CIMET
Pravin Mahajan is the Founder of Bheja.ai and an accredited Mortgage Broker (Credit Rep. 570637). Based in Sydney, he sits at the unique intersection of financial regulation and enterprise technology.
With over 30 years of experience, Pravin has architected the consumer platforms that millions of Australians rely on for daily financial and purchasing decisions. His career is defined by building high-scale systems that simplify complex choices:
- RateCity (Acquired by Canstar): As Chief Product & Technology Officer, Pravin led the tech transformation that culminated in the company's acquisition. He orchestrated "Australia’s First Home Loan Sale," a digital initiative that reached over 12 million people.
- CIMET: As CPTO, he built enterprise-grade infrastructure for energy and broadband comparison, scaling operations to support major B2B partners.
- Salmat (Lasoo): He architected digital catalogue systems used by 5.7 million monthly users, digitising the retail experience for brands like Target and Myer.
- Woolworths: Designed the real-time, secure "Pay at Pump" transaction infrastructure deployed Australia-wide.
Today, at Bheja.ai, Pravin combines this deep technical background with his Certificate IV in Finance and Mortgage Broking to build AI agents that don't just compare loans, but help Australians actively secure their financial future.
Vidhu Bajaj
Finance Editor
Vidhu is the Finance Editor at Bheja.ai. For more than nine years, she has been demystifying personal finance, covering everything from home loans and credit cards to insurance and investing for leading Australian comparison websites, including RateCity, Canstar, Finty, Credit Card Compare and HashChing.
Before focusing on consumer finance, Vidhu studied law, earning a Bachelor of Laws with a focus on human rights. She then spent more than four years in asset finance at Clifford Chance, working across the firm's India, London and Hong Kong offices on transactions ranging from aviation finance to vessel finance.
When she's not making finance simple for Aussies, you'll find her reading about spirituality, technology and investing, spending time in the garden, or hanging out with her pets.
Frequently Asked Questions
Refinancing can help you lower your interest rate, reduce monthly repayments, switch to a loan with better features, consolidate debts, or access equity in your home. It’s a way to ensure your home loan remains competitive and aligns with your financial goals.
