4 Refinancing Strategies to Consider for Your Home Loan
When interest rates rise, repayments go up for most borrowers on a variable rate. That can put pressure on the household budget, but it's also a good reason to check whether your home loan still suits you.
On 29 September 2026, the Reserve Bank of Australia (RBA) raised the cash rate by 0.25% to 4.60%, the highest since 2011.
The cash rate is the benchmark that influences what lenders charge, and lenders usually pass at least some of each increase on to their variable home loan rates.
This guide covers why a rate rise is a good time to review your loan, four refinancing strategies to consider, and what to check before making a change.
Why Review Your Home Loan Rate After a Rate Rise?
A rate rise is a reminder that the rate you're paying may no longer be competitive, and that your loan may not suit your situation the way it did when you first took it out. Reviewing it gives you a clear picture of where you stand and what your options are.
New customers often get a sharper rate. Many lenders offer lower rates to attract new borrowers than they charge their existing customers. This gap is often called the "loyalty tax", and it can widen over the years if your rate is never reviewed.
Lenders don't all move the same way. When the cash rate changes, each lender decides how much of the change to pass on and when. Lenders also adjust their pricing at other times to compete for certain types of borrowers, so the rate you were given a few years ago may now be higher than what's available.
Your circumstances may have changed. Your income, expenses, property value and loan balance all shift over time. If your property has grown in value or you've paid down your loan, you may now have a lower LVR (loan-to-value ratio: how much you owe compared with what your property is worth), and some lenders offer lower rates to borrowers with a lower LVR.
Your goals may have changed too. A loan set up for your first home may not suit you if you're now planning a renovation or an investment purchase, or if you'd like more certainty over your repayments.
A review doesn't always end in a refinance. Sometimes it confirms your current loan is still a good fit, and that's a useful result too. Either way, you're making the decision with up-to-date information.
Four Refinancing Strategies to Consider
Below are four strategies to consider, roughly in the order we'd usually work through them. Some of them, particularly fixing your rate and switching to interest-only repayments, can affect your longer-term plans and, for investment properties, your tax position. It's a good idea to discuss them with your accountant or financial planner, as well as your mortgage broker, to work out what suits your situation.
Ask your current lender for a rate review. You, or your mortgage broker on your behalf, can contact your lender and ask them to review your interest rate. It's usually the simplest and lowest-cost place to start. There's typically no cost to request a review, and your broker shouldn't charge you for asking on your behalf. Once the lender responds, compare their offer with other options in the market to see whether your rate is competitive for your situation. If it isn't, that's when the second strategy comes in.
Refinance your home loan to a new lender. If your current lender won't offer a competitive rate, moving to a different lender may be worth considering. Before you start, speak with a mortgage broker to check whether the cost of refinancing and your new repayments would make a worthwhile difference, and whether the move makes sense for you and your family. A broker can compare your loan against the lenders on their panel, and at Antigona Finance we can compare against more than 50 lenders. There's no cost to you for this comparison before a loan application is submitted. Some of the reasons refinancing to a new lender can make sense:
A new lender may offer a sharper rate to win your business than your current lender offers its existing customers.
You can choose features that suit you now, such as an offset account or the option to split your loan.
It's an opportunity to restructure your loan at the same time, for example by changing the loan term or splitting it between fixed and variable.
You may want to consolidate some of your other debts to help lower your overall monthly outgoings, although spreading short-term debts over a longer loan term can mean paying more interest overall.
Fix part or all of your loan. Fixing your rate gives you certainty over your repayments for a set period, usually between one and five years. Discuss this with your broker and, if the loan is for an investment property, with your accountant or financial planner too, so the decision fits your medium to long-term goals. Fixing does have some downsides:
Lenders usually charge a one-off fee to fix your rate.
You typically lose full offset benefits on the fixed portion of your loan.
The lender's fixed rate can be higher than its variable rate.
If you sell, refinance or pay off the loan during the fixed period, you may have to pay break costs.
Splitting your loan can reduce these downsides. You fix one portion and keep the rest variable, so you can still use an offset account against the variable portion. If the fixed rate is higher than the variable rate and rates don't rise further, only part of your loan is locked into the higher rate. A split gives you some certainty over repayments while keeping flexibility and limiting your risk.
Switch to interest-only repayments. With interest-only repayments, you pay just the interest on your loan for a set period, which lowers your repayments for that time. On a variable interest-only loan, you can usually keep using your offset account. If you choose a fixed interest-only rate, the same trade-offs as fixing apply: your offset may be restricted and a fee may apply. This option may suit you if you're happy with your current lender or switching would cost too much, and you need lower repayments for a period, for example while your income dips over the next one to five years. If the loan is for an investment property, discuss it with your accountant or financial planner as well as your broker. Keep these trade-offs in mind:
Your loan balance doesn't go down during the interest-only period.
You'll pay more interest over the life of the loan.
Your repayments will rise when the interest-only period ends, because the balance then has to be repaid over a shorter remaining term.
Lenders assess interest-only requests separately and may not approve them, particularly for owner-occupied loans.
What Should You Check Before Refinancing? A Checklist
Before you commit to a new loan, it's worth working through the points below. A mortgage broker can help you check each of them against your situation.
Switching costs. Add up what it will cost to leave your current loan and set up a new one, then compare that with what you expect to save. These costs can include:
A discharge fee from your current lender to close your loan.
Break costs, if you're currently on a fixed rate.
New lending costs, such as establishment, application and valuation fees.
Government fees to register the new mortgage and discharge the old one.
Your LVR and LMI. Your LVR (loan-to-value ratio) affects the rates and options available to you. If you're borrowing more than 80% of your property's value, a new lender may require lenders mortgage insurance (LMI), even if you already paid it on your current loan.
Refinance offers. Some lenders offer cashback or other incentives to new customers. These can help cover your switching costs, but look past the headline offer. A cashback paired with a higher interest rate can cost more over time than a lower rate with no cashback. Check any conditions attached to the offer as well, such as a minimum loan size or a settlement deadline.
Loan features. Make sure the new loan has the features you use, such as an offset account or a redraw facility. Check whether these features come with extra costs, such as an annual package fee.
Your credit file. Lenders check your credit history as part of the application. Late payments, defaults or several recent credit applications can affect which lenders will approve you and the rate you're offered. You can request a free copy of your credit report from a credit reporting body before you apply.
Whether you can qualify with a new lender. When you refinance, the new lender assesses your income, expenses and debts as if it were a new application. Lenders also check that you could still afford your repayments if rates rose further. This means some borrowers who are comfortable with their current repayments may not qualify with a new lender, so it's worth reviewing your loan sooner rather than later.
Working through this checklist with a broker shows you the full cost and benefit of refinancing before you make a decision.
How Does Refinancing a Home Loan Work?
If you decide to look into refinancing, the process is similar to applying for any home loan. Here's what it usually looks like:
Talk to a mortgage broker. Share your current loan details and your situation, and the broker will look at what options are available to you.
Review your options. If the broker finds a more suitable rate or loan, they'll explain the costs and benefits and the next steps, so you can decide whether to go ahead.
Arrange the discharge from your current lender. You'll complete a discharge form, which tells your current lender you're moving your loan. Your broker can help you with the timing.
Submit your new loan application. Your broker prepares and lodges your application with the new lender. From here, it works like any other loan application. You can read more about each stage in our guide to the home loan process.
Transfer funds from your offset/redraw account to your personal bank accounts. During the settlement process, any funds remaining in your offset/redraw accounts will be taken by your previous lender to pay down your current mortgage before transferring it over to the new lender.
Settlement. Once your new loan is approved, the new lender pays out your old loan and your new loan begins.
How a Mortgage Broker Can Help
Your home loan is likely one of the biggest financial commitments you'll have, so it makes sense to have an expert look after it and keep your interests front of mind. At Antigona Finance, we work with borrowers on the Gold Coast and across Australia, and we can:
Compare your current loan against more than 50 lenders on our panel.
Explain the upsides and downsides of staying with your current lender or moving to a new one, including the costs involved.
Look after the application and discharge process for you, and keep you updated through to settlement.
Whether you end up staying with your lender or switching, you'll have a clear picture of whether your loan still suits your situation. Book a free, no-obligation consultation with Antigona Finance to review your home loan.
Frequently Asked Questions
How long does it take to refinance a home loan?
Refinancing often takes a few weeks from application to settlement, but it varies. It depends on how quickly the new lender assesses your application, whether a valuation is needed, and how long your current lender takes to process the discharge. Having your documents ready and lodging the discharge form early can help.
How soon after buying a home can I refinance?
There's generally no minimum period before you can refinance. However, if you're on a fixed rate, you may have to pay break costs, and if you're borrowing more than 80% of your property's value, you may need to pay LMI again with a new lender. It's worth checking both before you decide.
How often should I review my home loan?
It's a good habit to review your home loan every year or two, and whenever interest rates or your circumstances change, such as a change in income or plans to renovate or invest. A review doesn't mean you have to refinance. It confirms whether your current loan still suits you.
Does refinancing affect my credit score?
Applying for a new loan adds a credit enquiry to your credit file, which can have a small, short-term effect on your score. Several applications in a short period can have a bigger impact, so one well-prepared application with a suitable lender is better than applying with several.
Is it worth refinancing for a small rate difference?
It depends on your loan balance, the costs of switching and how long you plan to keep the loan. On a larger loan, a small rate difference can add up over time, but on a smaller loan or a short timeframe, switching costs can outweigh the savings. A broker can work out the numbers for your situation.
What is LMI, and will I have to pay it again if I refinance?
Lenders mortgage insurance (LMI) is a one-off cost that protects the lender if you can't repay your loan. It usually applies when you borrow more than 80% of your property's value. LMI doesn't transfer between lenders, so if you're above 80% when you refinance, you may have to pay it again.
What's the difference between an offset account and a redraw facility?
An offset account is a separate transaction account linked to your home loan. Its balance is offset against your loan, so you're charged interest on a lower amount. A redraw facility lets you access extra repayments you've already made on the loan. Both can reduce interest, but an offset account usually gives easier access to your money.
This information is general in nature only and does not take into account your personal objectives, financial situation, or needs. It should not be relied upon as personal financial or credit advice, please seek independent professional advice before making a decision based on this information. If you'd like more personalised information about your borrowing potential, reach out to us directly for a consultation.
Antigona Finance Pty Ltd Corporate Credit Representative 576679 | Australian Credit Licence 384704
