5 things to keep in mind before refinancing
Something to keep in mind when looking to refinance your home loan is lenders vary greatly in what they can offer. You may want to find the lowest interest rate possible, however there are a number of other factors to consider that could save you time and money.
Some areas lenders can vary greatly include:
1. Serviceability criteria. Each lender has its own criteria to determine whether you can easily make the repayments. This can impact the amount it may be willing to lend you and whether you qualify for a loan in the first place.
2. Fee differences. Loans cost more than just the interest rate. Some charge annual fees, fees for features and even things like lenders mortgage insurance (LMI) can come at a different cost depending on the lender.
3. Turnaround times. Some lenders can approve loans much faster than others. It’s important to factor in the approval times when changing lenders and to factor potential extra time into your calculations to determine whether it impacts your cost saving compared to another lender that may be faster.
4. Lending criteria. Some lending criteria are the same across lenders – such as being at least 18 years old and your resident status. However, other criteria vary depending on the lender, such as your employment (including if you are self-employed) and the details of the property (some may have restrictions on building types or locations).
5. Promotions. Depending on your situation, there may be promotions available that you could qualify for. For example, some lenders offer “green loans” if a home fulfils certain sustainable, energy-efficient criteria. Others offer special deals for people in certain professions including the medical industry.
On top of this, you may want to structure your loan differently to better suit your current circumstances or goals. The structure of your loan can make a difference to your repayments, interest you pay and time it will take to pay off.
As a broker, I work with lenders day in, day out, and have a good understanding of how long approvals are taking and how they vary in their policies and offerings. If you’re considering refinancing, arrange a free, no-obligation chat. I’ll assess your situation and make recommendations in your best interest.
Licensing statement: Rayne Finance ABN [70 605 100 838] is authorised under LMG Broker Services Pty Ltd Australian Credit Licence 517192. Disclaimer: (1) As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should, before acting in reliance upon this information, seek independent professional lending or taxation advice as appropriate and specific to your objectives, financial circumstances or needs. This publication is provided on the terms and understanding that: (2) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. (3) LMG Broker Services Pty Ltd, Rayne Finance (Seed Lending Pty Ltd) and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to the maximum extent permitted by the law to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication.
Explore other FAQs and Facts
How much do you need for a home deposit?
Buying a property but don’t have the deposit in cash right away? There may be an alternative worth considering. In some situations, buyers can provide a guarantee instead of upfront funds. It’s a tool that can offer flexibility without compromising the seller’s confidence, but how does it actually work?
What are deposit bonds and how do they work?
Buying a property but don’t have the deposit in cash right away? There may be an alternative worth considering. In some situations, buyers can provide a guarantee instead of upfront funds. It’s a tool that can offer flexibility without compromising the seller’s confidence, but how does it actually work?
Understanding conditional loan approval
Thinking about buying a property? You’ve probably heard the term “conditional approval” thrown around but what does it actually mean, and how does it differ from unconditional approval? Understanding the difference can help you feel more confident, better prepared, and avoid surprises as you move through the home loan process.
How to use equity to purchase property
Equity in your home can open doors to new financial opportunities, including property investment, renovations, or debt consolidation. It’s about understanding what you’ve built up—and how to use it wisely. With the right guidance, equity can help you move forward with confidence, but it’s important to weigh the benefits and risks.
What are low-doc loans and who are they for?
Low-doc loans offer a solution for self-employed borrowers who lack traditional financial documents like payslips or tax returns. Instead, lenders assess income using BAS, bank statements, or accountant declarations. While these loans provide flexibility, they often require higher deposits and carry stricter conditions, making them best suited for specific borrower situations.
Home loan redraw facilities explained
A home loan redraw facility lets you access extra repayments you’ve made on your mortgage, helping to lower interest while offering flexibility if you need funds later. It differs from an offset account in accessibility and structure, with pros and cons depending on your spending habits and how easily you need to access savings.
Help to Buy scheme and changes to how lenders consider student debt
More Australians could soon enter the property market with just a 2% deposit, thanks to the expanded Help to Buy scheme. Meanwhile, new lending guidance means student debt will now be treated more flexibly, helping younger buyers. These changes aim to make homeownership more accessible for low- and middle-income earners.
What the federal budget means for buying property
The 2025 federal budget introduces key measures affecting home buyers, including an expanded Help to Buy scheme, increased infrastructure investment, and incentives to grow the construction workforce. Foreign investors face new restrictions, and funding for prefabricated homes aims to accelerate supply. These changes could significantly reshape Australia’s property market.
Own your debt before it owns you
Here’s the hard truth: If you’re not in control of your debt, it’s controlling YOU.
Debt doesn’t just sit quietly in the background. It piles up, creeps into your financial freedom, and slowly starts calling the shots. It’s time to flip the script.
Find out how taking control of your debt can restore your financial freedom and bring peace of mind.
Rental growth slows as affordability is stretched
Rental growth slowed in 2024, despite the national median rent rising 4.8% for the year. Affordability pressures led renters to form larger households, easing demand. Meanwhile, increased investor activity added supply, lifting vacancy rates slightly to 1.9%. Still, with rents rising and vacancies low, many investors remain in a strong position.