• 5 min read

Refinancing a home loan involves more than finding a lower rate. Before applying, there are a number of things worth reviewing to understand whether a refinance makes sense and which lender may suit your current position.

Quick Answer

Before refinancing, review your current rate, loan structure, equity position, income treatment, remaining term, exit costs and future goals. The right lender may assess your income and equity differently to your current lender.

The Refinance Checklist

Current interest rate — compare to available market rates across 50+ lenders

Fixed rate expiry — if approaching, review options before the revert rate applies

Loan structure — principal and interest vs interest-only; offset and redraw availability

Remaining loan term — refinancing can extend or reduce the term

Equity position — how much equity you have and whether it enables better options

Property valuation — lenders may order a new valuation which affects LVR

Exit costs — break fees, discharge fees and establishment fees at the new lender

Income assessment — whether a new lender may assess your income more favourably

HECS and other liabilities — how they affect serviceability at the new lender

Future plans — investment, renovation, family changes or employment changes

Lender policy — whether your profession gives access to specific policies

Credit profile — check your credit report before applying

Why Professionals Should Review Their Rate Regularly

Many professionals see income growth over time as their career progresses. A higher income may unlock different lender options, better rates or the ability to restructure debt more effectively. A refinance review is worth considering any time there is a significant income change, equity milestone or fixed rate expiry.

When Refinancing May Not Make Sense

High break costs on a fixed rate loan that has recently started

Not enough equity to meet the new lender’s LVR requirements without LMI

Marginal rate saving that does not offset application and establishment costs

Plans to sell the property within 12 months

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Frequently Asked Questions

How often should I review my home loan?

Most financial advisers suggest reviewing your home loan every 12–24 months, or whenever your income, equity or life situation changes significantly.

Typical refinances take 2–6 weeks depending on lender, valuation and documentation requirements.

A refinance application usually involves a credit enquiry. The impact depends on your credit profile and application history.

Rate vs Structure: Which Matters More?

Many borrowers focus only on the interest rate when considering refinancing. But loan structure — repayment type, offset use, loan term, loan purpose — can have as much impact as rate. A lower rate on a poorly structured loan may not produce the outcome expected.

When Refinancing Costs Can Outweigh Savings

Break costs on a fixed loan that was recently set up

Establishment fees at the new lender that exceed repayment savings in the short term

Extended loan term that increases total interest even if monthly repayments drop

Losing a favourable package or rate discount at the current lende

LMI charged at the new lender if equity has fallen or LVR thresholds have changed

Income Reassessment At A New Lender

Refinancing gives an opportunity to reassess income with a different lender. If your income has grown since your original application — through overtime, promotions, partnership income or practice growth — a new lender may assess your position more favourably than your current one.

The Refinance Timeline

Typical refinance takes 2–6 weeks from application to settlement

Valuation is ordered by the new lender — result can affect LVR and waiver eligibility

Discharge from current lender must be arranged — discharge fees may apply

New lender application, credit check and full assessment required

Plan for the timing if you have a fixed rate expiry approaching

Refinance Checklist For Professionals

Current interest rate reviewed against market alternatives

Loan structure — P&I vs IO, offset vs redraw reviewed

Equity position and current property valuation estimated

Exit costs — discharge fee, break fee if fixed rate

Income reassessment — whether new lender counts more income

HECS treatment at new lender

Future plans — investment, renovation, career changes

What to check Why it matters
Current interest rate Benchmark to compare against alternatives
Remaining loan term Resetting to 30 years increases total interest
Fixed rate expiry date Break costs apply if exiting early
Discharge fee Typically $150–$500 depending on lender
Application fee at new lender Can offset rate savings in short term
Current property valuation Affects LVR and whether LMI applies at new lender
Income reassessment New lender may assess income more or less favourably
HECS treatment Different lenders model HECS impact differently

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General information only. Rates, repayment estimates and lending outcomes vary by lender and are subject to assessment.

Written by: Simpli Finance Lending Team  ·  Reviewed by: [Broker Name], Mortgage Broker  ·  Last updated: June 2026