Calculate your savings, understand break costs, and compare 22 Australian lenders. Most borrowers who switched in the past 12 months saved $3,000–$6,000 per year.
Quick answer
Refinancing is worth it if your current rate is 0.5% or more above the best available rate and you plan to stay in the property for at least 6 months. On a $600,000 loan, a 0.5% rate reduction saves approximately $3,000 per year. Switching costs are typically $500–$1,500 for variable loans.
$4,200
Average annual saving when switching from Big 4 to a competitive non-bank on $600k loan
4–6 wks
Typical time from application to settlement for a refinance
3.85%
RBA cash rate as of March 2026 — cut 0.25% on 3 February 2026
Refinance Savings Calculator
How much could you save?
Enter your current loan details to see your potential annual and lifetime savings.
Your current loan
Current loan balance
$
Current interest rate
% p.a.
New interest rate
% p.a.
Remaining loan term
years
Estimated switching costs
$
Annual saving
$4,256
$355 per month
Current monthly repayment$3,712
New monthly repayment$3,357
Break-even point~3 months
Total interest saved (lifetime)$106,400
Rate difference0.75% p.a.
Estimates only. Based on P&I repayments. Does not include break costs for fixed rate loans or LMI if LVR exceeds 80%.
Decision Guide
When does refinancing make sense?
Use this checklist to assess whether switching is right for your situation.
Good reasons to refinance
Your rate is 0.5%+ above market
If your current lender's rate has drifted above the best available, switching typically saves thousands per year. Check your latest statement.
Your fixed rate period is ending
When a fixed rate expires, loans revert to a high "revert rate." This is the ideal time to shop — no break costs apply.
Your property value has increased
Higher equity means lower LVR, which unlocks better rates. If your LVR has dropped below 80%, you may avoid LMI entirely.
Your income has grown since you borrowed
Stronger financials may help you qualify for lower-rate products you previously couldn't access.
Think carefully before refinancing
You're mid-way through a fixed rate
Break costs can easily exceed your potential savings. Always request a break cost quote from your lender before proceeding.
You're selling within 12 months
Switching costs may not be recovered if you sell quickly. Calculate your break-even point first.
Your LVR is above 80%
Refinancing with less than 20% equity may trigger LMI again at the new lender — a cost of $5,000–$25,000 that wipes out rate savings.
Your employment situation has changed
Recently changed jobs, gone casual, or become self-employed? Some lenders require 6–12 months in a role before approving a refinance.
Fixed Rate Loans
Understanding break costs
Break costs are the most misunderstood part of refinancing. Here's what you need to know.
What is a break cost?
When you exit a fixed rate loan before the fixed period ends, your lender charges a break cost to compensate for lost interest. The formula is broadly: Break Cost = Loan Balance × (Wholesale Rate at Fixing − Current Wholesale Rate) × Remaining Fixed Term.
If rates have fallen since you fixed, break costs can be very large — sometimes $20,000–$50,000 on a large loan. If rates have risen since you fixed, break costs may be close to zero or even negative (meaning a rebate).
Always request a formal break cost quote from your lender — they are legally required to provide one within 5 business days. Do not attempt to calculate it yourself; the wholesale rate formula is not public.
Step by Step
How to refinance in Australia
The complete process from rate check to settlement.
1
Check your current rate and compare
Find your interest rate on your most recent loan statement or in your online banking app. Use AgentFinance's comparison tool to see the best rates across 22 lenders. If the gap is 0.5% or more, refinancing is worth investigating.
⏱ 10 minutes
2
Calculate savings and check for break costs
Use the calculator above to estimate your annual and lifetime savings. If you are on a fixed rate, call your lender and request a formal break cost quote before proceeding. This is free and they must provide it within 5 business days.
⏱ 30 minutes
3
Gather your documents
You'll need: 2 most recent payslips, 3 months bank statements (all accounts), your most recent loan statement, a council rates notice for your property, and photo ID. Self-employed borrowers also need 2 years tax returns and ATO assessments.
⏱ 1–2 hours
4
Apply with your chosen lender
Submit your application online or through a mortgage broker. A broker can submit to multiple lenders simultaneously and negotiate on your behalf — the service is free to you (the lender pays a trail commission). AgentFinance can connect you with an accredited broker at no charge.
⏱ 2–5 business days for conditional approval
5
Property valuation and formal approval
The new lender will order a property valuation — this is at their cost. The valuation takes 3–7 business days. Formal approval follows within 1–3 business days. Continue making repayments to your existing lender throughout this process.
⏱ 5–10 business days
6
Settlement
Your new lender pays out your existing lender. You receive confirmation of the new loan and begin making repayments. Your first repayment is typically due 30 days after settlement. The total switching cost appears as a line item on your settlement statement.
⏱ 1–2 weeks after formal approval
Rate Comparison · March 2026
Best refinance rates in Australia
Lowest variable rates available to refinancers. Rates current as of March 2026 — verify directly with lender before applying.
Lender
Type
Variable Rate
Comp. Rate
Offset
Best for
Virgin Money
Non-bank
5.19%
5.21%
No
Lowest rate, LVR ≤ 80%
Unloan
Digital
5.44%
5.45%
No
Rate drops each year you stay
Greater Bank
Mutual
5.44%
5.46%
Yes
Offset + competitive rate
Macquarie Bank
Bank
5.59%
5.60%
Yes
Self-employed, fast approval
Ubank
Digital
5.59%
5.61%
Yes
App-first, offset included
ING
Digital
5.79%
5.82%
Yes
Everyday banking + offset
Commonwealth Bank
Big 4
6.09%
6.22%
Yes
Branch access, complex loans
Westpac
Big 4
6.19%
6.31%
Yes
Package deals, existing customers
Rates sourced from Canstar, Finder, and Money.com.au. March 2026. Subject to change. Comparison rates based on $150,000 loan over 25 years. Always verify directly with the lender.
Frequently Asked Questions
Refinancing questions answered
Is it worth refinancing my home loan in 2026?
Yes, for most variable rate borrowers — particularly those on a Big 4 rate. The RBA cut rates in February 2026 but many major banks have been slow to pass on the full reduction to existing customers. If your rate starts with a 6 or higher, you are almost certainly paying more than you need to. The best variable rates in Australia are currently around 5.19–5.44%, giving borrowers on 6.19% a potential saving of $4,200 per year on a $600,000 loan.
How much does it cost to refinance a home loan?
For variable rate loans, total switching costs are typically $500–$1,500. This includes a discharge fee from your existing lender ($150–$400), any application or settlement fee at the new lender ($0–$600), and legal/conveyancing costs if applicable ($0–$500). Many lenders now waive application fees for refinancers. Fixed rate loans may incur substantial break costs on top of this — always get a break cost quote before proceeding.
How long does refinancing take in Australia?
Refinancing typically takes 4–6 weeks from application to settlement. The main steps are: application (1 day), conditional approval (2–5 business days), property valuation (3–7 days), formal approval (1–3 days), and settlement (1–2 weeks). Digital lenders such as Macquarie and Ubank are often faster — sometimes completing the process in 2–3 weeks. You continue making repayments to your existing lender until settlement.
What is a break cost on a fixed rate home loan?
A break cost applies when you exit a fixed rate loan before the fixed period ends. It compensates the lender for the interest rate risk. The cost depends on how much wholesale rates have moved since you fixed. If rates have fallen, break costs can be very large — sometimes $10,000–$50,000. If rates have risen, break costs may be near zero. Always request a formal break cost quote from your lender — they must provide this within 5 business days and it is free.
Can I refinance if my property has decreased in value?
Yes, but it becomes more complex. If your LVR has risen above 80% due to a property value decline, the new lender may require Lenders Mortgage Insurance (LMI) — a cost that could eliminate your rate savings. Some lenders offer "LMI-free refinancing" up to 85–90% LVR for existing customers with clean repayment history. A broker can identify which lenders are most flexible in your situation.
Should I use a mortgage broker to refinance?
For most borrowers, yes. A broker can compare dozens of lenders simultaneously, negotiate rates, and handle much of the paperwork. The service is free to you — brokers are paid a commission by the lender when your loan settles. This does not affect the rate you receive; lenders are legally prohibited from offering different pricing through brokers vs direct. Brokers are particularly valuable for self-employed borrowers, unusual income structures, or anyone with a complex financial situation. AgentFinance can connect you with an accredited broker at no charge.
Find out your exact refinance savings
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