Many Brisbane homeowners could save thousands by refinancing their home loan, but is it right for you? This guide helps you decide.

What is Refinancing?

Refinancing means replacing your existing home loan with a new one - either with your current lender or a different one. Brisbane homeowners refinance for several reasons:

  • Lower interest rates
  • Better loan features
  • Access equity
  • Consolidate debts
  • Change loan structure

Signs You Should Consider Refinancing

Your Rate is Above Market

If your current interest rate is 0.5% or more above competitive market rates, refinancing could save you significantly. Many Brisbane homeowners stay loyal to their bank without realising they’re overpaying.

You Haven’t Reviewed Your Loan in 2+ Years

Interest rates and lender policies change constantly. A loan that was competitive when you got it may no longer be the best option.

Your Financial Situation Has Improved

If your income has increased or you’ve reduced other debts, you may qualify for better rates or features than when you first borrowed.

You Want Better Features

Modern loans often include:

  • Offset accounts
  • Redraw facilities
  • Split loan options
  • Flexible repayment schedules

If your current loan lacks features you’d use, refinancing can add them.

How Much Could You Save?

Here’s an example of potential refinancing savings:

Current Loan:

  • Balance: $500,000
  • Rate: 6.5%
  • Monthly repayment: $3,160

Refinanced Loan:

  • Balance: $500,000
  • Rate: 5.9%
  • Monthly repayment: $2,965

Potential Savings:

  • Monthly: $195
  • Annual: $2,340
  • Over 30 years: $70,200

Even small rate reductions add up over time.

Refinancing Costs to Consider

Refinancing isn’t free. Budget for:

  • Discharge fees - Your current lender’s exit fee (usually $150-400)
  • Application fees - New lender’s setup cost (often waived)
  • Valuation fee - Property assessment ($200-500)
  • Legal/settlement fees - Conveyancing costs ($200-500)
  • Break costs - If exiting a fixed rate loan early

Your Brisbane mortgage broker calculates whether savings outweigh costs before recommending refinancing.

When Refinancing May NOT Make Sense

Consider staying put if:

  • You’re close to paying off your loan (small balance, high percentage costs)
  • You’re on a competitive fixed rate with high break costs
  • Your property value has dropped significantly
  • You plan to sell soon
  • Your credit situation has worsened

The Refinancing Process

Step 1: Review Your Current Loan

Understand your current rate, features, and any exit costs. Check your loan documents or call your lender.

Step 2: Compare Options

A Brisbane home loan broker compares your current loan against options from 40+ lenders to find better deals.

Step 3: Apply with New Lender

Submit your refinance application with required documents (pay slips, ID, current loan details).

Step 4: Property Valuation

The new lender assesses your property value. Brisbane property growth may have increased your equity.

Step 5: Settlement

The new lender pays out your old loan. You start fresh with your new lender and better terms.

Typical timeline: 3-6 weeks from application to settlement.

Refinancing to Access Equity

Brisbane property values have grown significantly. Refinancing lets you access this equity for:

  • Home renovations
  • Investment property deposit
  • Debt consolidation
  • Major purchases

To access equity, your combined loan needs to typically stay below 80% of your property value to avoid Lenders Mortgage Insurance.

Lenders We Compare for Brisbane Refinancing

Our panel includes:

Major Banks: Commonwealth Bank, ANZ, NAB, Westpac Regional Banks: Suncorp, Bank of Queensland, St.George Online Lenders: ING, Macquarie, UBank Non-Bank Lenders: Pepper Money, Liberty, Bluestone

Different lenders suit different situations. We match your circumstances with the best option.

Free Refinancing Assessment

Not sure if refinancing makes sense? Our Brisbane mortgage brokers provide free refinance assessments:

  1. We review your current loan
  2. We search for better options
  3. We calculate potential savings (including costs)
  4. We give honest advice on whether to proceed

No obligation - just clear information to help you decide.

Get Your Free Refinancing Assessment

Home Loan Brokers Brisbane - Brisbane’s refinancing specialists since 2009.