A refinance broker compares home loans across the lender market on your behalf, handles the application, and manages the switch through to settlement. NIK Finance compares 130+ lenders and charges borrowers nothing — lenders pay a commission on settlement. Refinancing a home loan in Australia typically takes 2 to 4 weeks, costs $500 to $2,000 in discharge, valuation and government fees, and on a $500,000 loan a 0.5% rate reduction saves roughly $2,500 a year.
The saving is driven by the gap between your current rate and what you could get, multiplied by your loan balance. Most people underestimate it because they compare against their original rate rather than today's market.
Annual saving from a rate reduction, on a principal and interest loan. Figures rounded and illustrative — your actual saving depends on your balance, remaining term and the rate you qualify for.
| Loan balance | 0.25% lower | 0.50% lower | 1.00% lower |
|---|---|---|---|
| $400,000 | About $1,000/yr | About $2,000/yr | About $4,000/yr |
| $500,000 | About $1,250/yr | About $2,500/yr | About $5,000/yr |
| $750,000 | About $1,875/yr | About $3,750/yr | About $7,500/yr |
| $1,000,000 | About $2,500/yr | About $5,000/yr | About $10,000/yr |
Lenders price new customers more sharply than existing ones. The gap between the rate you are on and the rate that same lender advertises today is often the entire case for refinancing, and it is the number worth checking before anything else.
Refinancing is worth doing when the saving clears the switching cost within a reasonable period, usually under twelve months. These are the situations where that is most often true.
Revert rates are almost always uncompetitive. Lenders rely on inertia at exactly this moment. Start comparing 6 to 8 weeks before the fixed period ends.
If your rate starts with a higher number than the same lender advertises to new customers, you are funding their acquisition budget. Ask for a match first, then move.
Crossing below 80% LVR through repayments or growth unlocks better pricing and removes LMI from the equation on any new lending.
Releasing usable equity for a renovation, an investment deposit or to consolidate debt is done through a refinance.
A pay rise, a cleared default, or a credit file that has aged past a past problem can move you into a lender tier that was closed to you before.
Paying a package fee for an offset you never use, or sitting on interest-only when principal and interest would suit, are both fixable at refinance.
| Cost | Typical range | Note |
|---|---|---|
| Discharge fee (current lender) | $150 – $400 | Charged for releasing the mortgage |
| Valuation (new lender) | $0 – $300 | Frequently waived below 80% LVR |
| Application/establishment fee | $0 – $600 | Often waived as part of a refinance offer |
| Mortgage registration and discharge | $150 – $400 | Set by your state land titles office |
| Break costs (fixed loans only) | Varies, can be large | Request a written quote from your lender before committing |
Total switching cost for a variable home loan is usually $500 to $2,000. Against a $2,500 annual saving, that is recouped in under a year. The exception is a fixed loan — break costs can run to thousands and are the one figure that can make refinancing uneconomic.
Two loans at the same advertised rate can differ substantially in what they actually cost and what they let you do. These are the features that matter at refinance specifically.
| Feature | Why it matters when refinancing |
|---|---|
| Cashback offer | A one-off payment, typically $2,000 to $5,000. Frequently paired with a higher rate that recovers it within 2 to 3 years. |
| Clawback period | Most cashbacks require you to stay 12 to 24 months. Leaving early means repaying it. |
| Offset account | Worth having if you carry a cash balance. Not worth an annual package fee if you do not. |
| LMI treatment above 80% LVR | A refinance above 80% triggers a fresh LMI premium — it is not transferred from your existing loan. |
| Turnaround time | Ranges from days to several weeks by lender. It matters if a fixed rate is expiring. |
| Rate for your LVR band | Many lenders price in LVR tiers. Crossing below 80% or 70% can unlock a better rate than the headline. |
Home loans are where the largest savings sit, because the balances are largest and the terms longest. We also refinance other debt, covered on their own pages.
A refinance broker compares home loans across a panel of lenders, identifies which will approve you at the best rate for your circumstances, prepares and submits the application, and manages the switch through to settlement. NIK Finance charges borrowers nothing — the lender pays a commission when the loan settles.
On a $500,000 home loan, a 0.5% rate reduction saves roughly $2,500 a year and a 1% reduction roughly $5,000. The saving scales with your balance. The most reliable indicator is the gap between your current rate and what your own lender advertises to new customers today.
Typically $500 to $2,000 for a variable home loan: a discharge fee of $150 to $400, valuation of $0 to $300, application fee of $0 to $600, and state registration charges of $150 to $400. If you are saving $2,500 a year, that is recouped in under twelve months.
Two to four weeks from application to settlement for a home loan, assuming your documents are ready at the outset. Car loan refinancing settles in 3 to 7 business days. Delays are almost always caused by incomplete document packs rather than by the lender.
A refinance creates one hard enquiry, typically costing a few points and recovering within months. The real risk is applying to several lenders yourself, because each enquiry compounds on your file and repeated enquiries can themselves trigger a decline.
Often yes, particularly if your credit has improved since the original loan or a default has aged. Specialist lenders assess current income and repayment conduct rather than the credit file alone. The rate reduction will be smaller than for a clean file, so check the numbers still work.
Compare before it expires rather than after. Revert rates are rarely competitive, and lenders count on borrowers not acting. Start 6 to 8 weeks out, which leaves time to settle a new loan before you spend a month on the revert rate.
Generally no. Refinancing requires the new lender to be satisfied with the security, and negative equity means the property does not cover the loan. Your options are to stay put and pay down principal, or negotiate a rate reduction with your existing lender.
When a cashback is worth taking, and when it is not
Release equity for a deposit or renovation
Roll consumer debt into your mortgage
DTI caps, equity release and interest-only rollovers
Lower the rate on an existing car loan
Model your own saving
Your Kreddi Score shows your current position, the rate you would qualify for across 130+ lenders, and whether the saving justifies the switching cost. It takes 15 minutes and leaves no mark on your credit file.
NIK Finance Pty Ltd (ACN 685 393 917) is a Credit Representative (567387) of Finsure Finance & Insurance Pty Ltd (Australian Credit Licence 384704). This page is general information only and does not constitute financial advice. Consider your personal circumstances and speak with a licensed broker before applying for credit.