Home loan refinancing checklist

1. Your current loan

• [ ] Current balance, interest rate and repayment amount
• [ ] Loan type: variable or fixed, principal and interest or interest only
• [ ] Remaining term in years
• [ ] If fixed: the end date, and the break cost estimate in writing
• [ ] Any offset or redraw balance
• [ ] Fees you pay each month or year
• [ ] Rough current value of the property and your loan-to-value ratio (what LVR means)

2. Ask your current lender first

• [ ] Phone or message the home loan team and ask for a lower rate (script)
• [ ] Ask for the new rate and start date in writing
• [ ] If the answer is no, ask what the lowest rate it advertises to new customers is, and why you cannot have it

3. Compare lenders

As at 2 Nov 2026 the lowest advertised standard owner-occupier variable rate in RateSonar's data is 5.69% (Aaa Financial Corporation Portfolio Loan), and the middle is 6.74%.

• [ ] Open home loan rates and filter to your loan type
• [ ] Shortlist three lenders and note each one's advertised rate, comparison rate and recorded date
• [ ] Check each lender's conditions: maximum LVR, minimum loan size, who may apply
• [ ] Put the shortlist side by side in compare rates
• [ ] Check rate changes for recent moves by those lenders

4. Price the switch

Moneysmart lists these switching costs. Get each number in writing.

• [ ] Break fee on your current loan, if it is fixed
• [ ] Discharge (termination) fee on your current loan
• [ ] Application fee on the new loan
• [ ] Valuation fee, if charged
• [ ] Lenders mortgage insurance on the new loan, if you have less than 20% equity
• [ ] Possible refund of LMI paid on the old loan
• [ ] Stamp duty, if any applies when you refinance (Moneysmart says to check with your lender)
• [ ] Any cashback and its clawback conditions

Total the costs. Then divide by the monthly saving to see how many months it takes to break even. Moneysmart has a mortgage switching calculator to help.

5. Choose features

• [ ] Offset account: needed? What is the fee, and is the rate higher? (how offset accounts work)
• [ ] Redraw: how do you access it, and is there a fee?
• [ ] Extra repayments: any limit or fee?
• [ ] Fixed, variable or split? (fixed vs variable)
• [ ] Loan term: no longer than your remaining term, unless you have a reason

6. Documents to gather

Lenders differ, so ask for the list. Commonly requested items include:

• [ ] Photo identification
• [ ] Recent payslips, or tax returns and accountant letters if self-employed
• [ ] Recent bank and credit card statements
• [ ] Your current home loan statement
• [ ] Council rates notice and insurance certificate for the property
• [ ] A list of your debts, credit cards and limits
• [ ] Living expense details

7. Before you sign

• [ ] Rate, comparison rate, fees and any discount confirmed in writing
• [ ] How long any discount lasts
• [ ] Repayment amount, and a check of what it would be if the rate rose 3 percentage points. At the middle rate of 6.74% on a $600,000, 30-year loan, that is about $5,151 a month, which is $1,263 more than today's $3,888, by RateSonar's arithmetic
• [ ] Settlement date, and whether you must keep paying the old loan until it closes

8. After settlement

• [ ] Confirm the old loan is closed and you have a discharge letter
• [ ] Check the offset account is linked to the new loan. Moneysmart notes an ASIC review found some offsets were not linked, so interest savings were lost
• [ ] Update salary, direct debits and any automatic transfers
• [ ] Close redraw or offset accounts you no longer use
• [ ] Check the first statement shows the rate you agreed
• [ ] Diary a rate review in twelve months