Your loan should still be earning its place.

As a rule of thumb: if you have not reviewed your loan in the past two years, check it. Refinancing pays off when the interest saving outweighs the switching costs — typically a discharge fee from your old lender, government registration fees and sometimes an application fee. We run that comparison for you at no charge before you commit to anything.

Most lenders let you borrow up to 80% of your property’s current value without lenders mortgage insurance. The difference between that figure and your current loan balance is your usable equity. On a $1.8 million Hills District home with $900,000 owing, that is up to $540,000 of potential equity — subject to serviceability.

Common uses are renovations, a deposit on an investment property, debt consolidation and major purchases. Lenders ask the purpose and may want simple evidence for larger amounts, such as a builder’s quote. We position the application so the purpose is clear and the approval is smooth.

A refinance application creates a credit enquiry, like any loan application. One considered application arranged through a broker — rather than several direct applications to different banks — keeps the impact minimal.

Commonly two to four weeks end to end: application and valuation in the first week or so, approval, then discharge and settlement between the lenders. Some lenders offer fast-track refinancing that completes in days. We manage both sides so your old lender’s discharge does not stall the switch.

It can cut your total monthly repayments substantially, because home loan rates are far lower than credit card and personal loan rates. The trade-off: spreading short-term debt over a long loan term can increase total interest unless you keep repayments up. We model both paths so you can decide with real numbers.