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What does refinancing your home loan mean?

When you refinance your home loan, you are replacing your existing mortgage with a new one. Often it's because your financial situation and goals have changed. But sometimes it's because you could get a better deal.

If you're thinking of refinancing your home loan, we offer flexible home loan options with great features. You can even tailor a loan to suit your unique needs.

What does refinancing a home loan mean?

In the most simple terms, it means you are repaying your existing home loan with a new one. The new one will typically be at a lower rate of interest or it might offer you better features. Regardless of your circumstances, understanding what refinancing involves will help you make the best choices.

How does refinancing work?

Refinancing often involves changing institutions or lenders, but not always. If you refinance your mortgage with a new lender, they will consider it a whole new loan. This means that you may need to get your property valued. 

If you are considering refinancing, the first thing you should do is review what the market has to offer and compare suitable home loans. Online research is one of your best friends here, as you can find a lot of useful comparison sites. Remember though, that sometimes these sites may not cover all your options.

Once you've chosen the best possible option, submitted your application and been approved, your new lender will probably handle the rest. They will want to see proof of your income, living expenses, plus a few of your latest loan statements. They will also be able to organise to have your home valued before you secure your new mortgage.

The refinancing process is usually a little more straightforward than when you secured your first home loan. Assuming it all goes smoothly, your new and old lenders will arrange for your new loan to pay out your existing one. From here, you start making repayments against your new loan.

Speaking with one of our home loan managers each year is a great way to make sure that you have access to the best home loan rate and features to suit your current circumstances.

What can refinancing offer you?

When your personal and financial circumstances change, refinancing your home loan is a great way to:

  • reach your lifestyle goals quicker
  • access market leading rates
  • manage your finances more efficiently
  • take advantage of additional features like an offset account or unlimited free repayments
  • get cashback incentives

Refinancing to a home loan with a lower interest rate can also shorten your loan term and reduce your repayments. Together, this can help own your home outright sooner.

Our home loan products are designed to save you valuable effort, time and savings. Plus, our dedicated team of home loan managers will help you review your current mortgage, choose whether refinancing is your best option, and make sure you're accessing the best rates and features.

Is refinancing right for you?

Now that you know the basics of home loan refinancing, you need to look at whether it's right for your situation.

Here's how to find out if refinancing is right for you.

Explore our home loan options.

Ready to refinance?

Speak to one of our home loan managers