Refinance Your Home Loan in Australia (2026): Rates, Costs, and How a Mortgage Broker Runs It
To refinance a home loan in Australia, you replace your existing loan with a new one, with your current lender or a different one, for a sharper rate, access to equity, better features or a different structure. It usually takes 4 to 6 weeks. Everstone Finance, a mortgage broker founded by former bankers, compares more than 40 lenders and runs the refinance at no cost to you.
Paying a rate you have not checked since the September rise? A former banker reprices it, free.
Send the rate you pay now and your balance, or a photo of your statement. You get what the same loan costs elsewhere today, the switching costs itemised, and the break even in months.
Reprice my home loan with a former banker- The RBA cash rate is 4.60% (from 30 September 2026, the fourth rise of the year), and the average variable rate was around 6.84% in May 2026, about 7.09% once the 0.25 point rise lenders passed on from 9 October 2026 is added.
- Refinance home loan rates: the lowest owner occupier variable rates published by lenders sit between 6.20% and 6.69% at their lowest loan to value bands, read from each lender’s own rate page on 17 October 2026 (see the rate table).
- Cost: typically a few hundred dollars in fees, often offset by lender cashback of $2,000 to $4,000.
- Cost to use a broker: $0, brokers in Australia are paid by the lender at settlement, not by you.
- What is refinancing?
- How it works
- Why refinance: seven reasons
- Is now a good time?
- Refinance home loan rates
- How much you can save
- What it costs
- How long it takes
- Equity you can access
- Your credit score
- The loyalty tax
- Refinance broker or direct?
- How Everstone Finance runs it
- How to refinance, step by step
- Your situation
- Questions and answers
Founded by former bankers. We compare 40+ lenders, on your side.
What is refinancing a home loan?
Refinancing a home loan means replacing your existing home loan with a new one, either with your current lender or a different one, to get a better interest rate, access your equity, gain better loan features or change your loan structure.
You can refinance for the same balance to get a sharper rate, or for a larger amount to release equity; the property does not change hands. In Australia mortgage and home loan mean the same thing, so refinancing a mortgage and refinancing a home loan are one and the same. Exit fees have been banned on home loans taken out since 1 July 2011, so the costs of switching are the discharge fee, the government fees and any fixed rate break cost; see break costs and exit fees.
How does a home loan refinance work?
Your new lender assesses your income, expenses, equity and credit, approves a new loan, pays out your existing lender, and registers a new mortgage against your property. You then repay the new loan under its terms.
The process runs in this order: application and document collection, property valuation, lender assessment and approval, the payout of your old lender (the discharge), then settlement, where the new mortgage is registered. You can refinance any time after settlement, subject to break costs on a fixed rate.
Why do people refinance a home loan? The seven reasons
Australians refinance a home loan for seven main reasons. Rate is the most common trigger, but it is only one of seven.
- Lower your rate: beat the “loyalty tax” banks charge existing customers.
- Release equity to invest: use built-up equity as the deposit on an investment property.
- Debt recycling: gradually convert non-deductible home loan debt into tax-deductible investment debt (a strategy requiring financial and tax advice alongside your broker).
- Consolidate debt: roll 20%+ credit card and personal debt into a sub-7% home loan.
- Renovate: fund value-adding works that lift your property’s value and, for investors, its rent.
- Better features: gain an offset account, redraw, or repayment flexibility an older loan lacks.
- Restructure: switch fixed/variable, remove lenders mortgage insurance, or separate cross-collateralised properties.
Your rate has a use-by date. Check it.
Lenders price loyalty and new business differently. A former banker compares your rate with what the market and your own lender offer new customers, then tells you plainly whether moving pays. One conversation, no cost.
Check my rate against the marketShould I refinance my home loan now? Is it a good time in 2026?
For many borrowers, yes. Counter-intuitively, a rising-rate environment is often the best time to review, because the gap between loyalty pricing and new-customer pricing widens. With the RBA cash rate at 4.60% from 30 September 2026 and the average variable rate near 6.84% in May 2026, about 7.09% after that rise, borrowers above that average are likely overpaying.
The Reserve Bank lifted the cash rate to 4.60 per cent on 29 September 2026, the fourth rise of the year, after holding it at 4.35 per cent in August. The four major banks passed the rise on to variable home loans from 9 October 2026, and the Board has said it will raise the cash rate further if needed. The next decision is on 3 November 2026. Reviewing before that date costs nothing and replaces guesswork with arithmetic.
The RBA’s own figures for new lending in June 2026 put the average new owner-occupier variable rate at 6.25% and the average new investor variable rate at 6.41%, about 6.50% and 6.66% after the 0.25 point rise passed on from 9 October 2026, so a loan written before this year’s hikes is being measured against those numbers now. Our guide to the September rate rise and refinancing has the repayment figures and a calculator.
Refinance home loan rates in Australia: what do lenders publish?
The best refinance home loan rate in October 2026 is not one number. Every lender publishes a headline rate that applies only at its lowest loan to value band, on one product. The table below is read from each lender’s own rate page on 17 October 2026.
Owner occupier, principal and interest, variable. Comparison rates are on the regulated basis of $150,000 over 25 years, so on a larger loan the gap between rate and comparison rate is usually smaller than the table suggests. Lowest variable in this set: Up at 6.20 per cent (single rate, deposit from 10 per cent; lender page, 17 October 2026).
| Lender | Product | Variable rate | Comparison rate | Loan to value band | Lowest 2 year fixed |
|---|---|---|---|---|---|
| Up | Up Home Variable Rate Loan | 6.20% | 6.20% | single rate, deposit from 10 per cent | 6.45% (comp 6.25%) |
| Westpac | Flexi First Option Home Loan, online offer | 6.24% | 6.25% | LVR up to 70 per cent (6.34% to 80 per cent) | 6.74% (comp 7.03%) with package, LVR to 70 per cent |
| Bank of Queensland | Economy Variable Home Loan | 6.28% | 6.42% | LVR up to 70 per cent (6.33% to 80 per cent) | 6.79% (comp 6.59%), conditions apply |
| Macquarie Bank | Basic Home Loan | 6.29% | 6.31% | LVR 70 per cent or less (6.34% to 80 per cent) | 6.59% (comp 6.37%) |
| ING Australia | Mortgage Simplifier | 6.29% | 6.32% | LVR 70 per cent or less (6.34% to 80 per cent) | 6.69% (comp 6.40%) |
| Bendigo Bank | Easy Home Loan | 6.34% | 6.36% | LVR 60 per cent or less (6.38% to 80 per cent) | 6.49% (comp 6.39%) |
| Commonwealth Bank | Digi Home Loan, online only | 6.34% | 6.36% | LVR 60 per cent or below (6.39% to 80 per cent) | 6.82% (comp 8.38%) with Wealth Package |
| Bank Australia | Basic Home Loan | 6.38% | 6.38% | LVR 70 per cent or less (6.39% to 80 per cent) | 6.79% (comp 6.47%) |
| Athena | Straight Up | 6.49% | 6.49% | LVR 50 per cent or less (6.64% at 70 to 80 per cent) | 7.19% (comp 6.63%) |
| ANZ | ANZ Plus Home Loan, app only | 6.50% | 6.50% | LVR up to 80 per cent | 6.74% (comp 7.34%) ANZ Fixed |
| St.George | Basic Home Loan, new loan rate | 6.54% | 6.55% | LVR up to 70 per cent (6.64% to 80 per cent) | 6.74% (comp 7.03%) with package |
| NAB | NAB Base Variable Rate Home Loan | 6.69% | 6.69% | no LVR tiers | 6.81% (comp 7.12%) Tailored |
Read from each lender’s own rate page on 17 October 2026, after lenders had passed on the 29 September cash rate rise; where a lender page prints its own effective date, those dates run from 7 to 15 October 2026. Rates change without notice and the lender’s page is the source of truth. A comparison rate applies only to the example given, and fees such as redraw or early repayment charges are not included. These are the lenders’ published rates, not an Everstone Finance offer, and lending is subject to each lender’s credit assessment.
Why is the lowest published rate rarely your rate?
Most headline rates need equity of 30 or 40 per cent, and the card rate is for new business: the rate your current lender charges you is set by its retention desk, which only moves when it is asked. What a former banker gets is each lender’s pricing for your file: the discretionary discount below the card that lenders release for a strong loan to value ratio, a clean file and a loan size they want.
How much can you save by refinancing your home loan?
Savings depend on your rate gap and loan size. On a $736,259 home loan over 30 years, switching from about 7.09% (the May 2026 average variable rate of 6.84% plus the 0.25 point rise passed on from 9 October 2026) to 6.24% (the lowest variable rate in the table from a major bank, read from the lender page on 17 October 2026) saves about $4,970 a year, or about $415 a month, before costs.
On a $600,000 loan with 25 years to run, moving from 6.64 to 6.14 per cent saves $187 a month, $2,239 a year and about $55,970 over the remaining term if rates were unchanged; a smaller cut from 6.39 to 6.14 per cent is $93 a month and about $27,830 over the term. Both figures are before costs and assume principal and interest repayments at the same term.
These figures are illustrative; your actual position depends on your loan structure, balance, term and circumstances. Run your own balance through the refinance savings calculator.
What does it cost to refinance a home loan?
Refinancing typically costs a few hundred dollars in fees, and many lenders offer cashback of $2,000 to $4,000 that commonly covers these costs.
Typical costs include a discharge fee (often $300 to $400), a mortgage registration and de-registration government fee, and possibly a new lender’s application or valuation fee. Break costs apply only inside a fixed period, and lenders mortgage insurance can apply if your equity is below 20%. On a meaningful rate reduction, the break-even point is usually within a few months: for example, $2,000 of costs against a $300/month saving breaks even in roughly seven months. Every fee line is set out in what refinancing a home loan actually costs, itemised.
Costs matter. So does the break even.
Every refinance has switching costs, and a good one earns them back quickly. We run your break even point before you commit to anything, so the decision is arithmetic rather than hope.
Run my break even, freeHow long does it take to refinance a home loan?
Refinancing in Australia typically takes 4 to 6 weeks from application to settlement, though clean files with cooperative lenders can be faster.
The timeline runs: application and documents (days), valuation (days to a week), approval (days to a week), then discharge and settlement. The discharge at your existing lender is the most common bottleneck, often two to three weeks on its own.
How much equity can you access when you refinance?
Generally you can access up to 80% of your property’s current value minus your existing loan balance, before lenders mortgage insurance (LMI) applies. The difference is your usable equity. On a $750,000 home with a $480,000 loan, that is about $120,000.
The arithmetic: 80% of $750,000 is $600,000, minus the $480,000 owed. The equity is only half the equation; the other half is whether you can service the larger loan, which a lender assesses on your income and expenses.
One new factor: national home values fell 3.7% in the three months to September 2026 on Cotality figures, which lifts your loan-to-value ratio on the same balance. Our guide to falling house prices and your refinance covers what that does to your rate tier.
Does refinancing affect your credit score?
A single refinance creates one credit enquiry, which has only a minor, short-term impact. Applying to multiple lenders directly stacks up multiple enquiries, which compounds the effect.
A broker pre-qualifies your file with the most suitable lender before formally lodging, so you avoid multiple hard enquiries. The refinance itself, once settled, does not harm your score, and consistent repayments on the new loan support it. Refinancing with bad credit can be possible through specialist lenders, depending on the issue and your current position; see bad credit home loans.
Prefer to message first? WhatsApp, text or call Ahmed about whether refinancing makes sense on your loan. It is his own mobile, no call centre, and nothing touches your credit file until you choose a lender.
What is the loyalty tax, and are you paying it?
The loyalty tax is the gap between the rate a lender charges its existing borrowers and the rate it offers new ones for the same loan.
Banks discount to win a customer and quietly let the discount erode over the years. The test takes five minutes: compare your current rate with the lender’s advertised new customer rate at your loan size and loan to value ratio. If there is a gap, ask your bank to close it (our guide to negotiating a home loan rate gives the script) or take the better offer elsewhere.
The Australian Financial Review reported in September 2026 that the major banks are holding back their best retention pricing until a borrower has lodged a discharge to leave. Our guide to refinancing with your current bank sets out how to judge that last-minute call.
Should you use a refinance mortgage broker or go direct to a bank?
A refinance mortgage broker compares many lenders at no cost to you, whereas going direct limits you to one bank’s products. Lenders generally price loans the same whether you go direct or through a broker, so there is no cost penalty for using one.
What does a refinance home loan broker do?
A broker assesses your situation across many lenders and should model your break-even before recommending a switch. A broker also pre-qualifies your file before lodging, handles the application and the discharge, and structures the loan correctly from the start. Our broker vs bank guide shows what each side owes you.
How is a refinance broker paid?
Brokers in Australia are paid by the lender at settlement, not by you, so the cost to you of using a broker is $0. To judge any broker before you commit, us included, read how to choose the best mortgage broker to refinance a home loan.
How does Everstone Finance run your home loan refinance?
Everstone Finance is a mortgage broking firm based in South Yarra, Melbourne, founded by former bankers with over a decade inside Australia’s major banks. We run your refinance from the first conversation to settlement, and it costs you $0, because the lender pays us at settlement.
- Review. We look at your rate, equity, goals and structure. It is free and does not involve a credit check.
- Compare. A former banker compares your rate with what the market and your own lender offer new customers, across more than 40 lenders.
- Break even. We run your break even point before you commit to anything, and set the costs against the saving in plain figures.
- Written offer. The offer we bring back is written and includes any cashback and the fees.
- Application. We pre-qualify your file with the most suitable lender before lodging, then handle the application.
- Settlement. We handle the discharge; your old loan is paid out and the new mortgage is registered.
We meet in person in South Yarra and work with borrowers across Australia by phone and video; see our online mortgage broker page.
Get a free, honest refinance review
We’ll look at your rate, equity, goals and structure, compare across 40+ lenders, and tell you plainly which loan we would recommend and why.
Book a free reviewHow to refinance a home loan, step by step
Refinancing a home loan runs in seven steps, from knowing your numbers to settlement.
- Know your numbers: current rate, balance, remaining term, and loan features.
- Set your goal: which of the seven reasons applies, rate, equity, consolidation, features, structure?
- Compare across the market: not just your bank, the sharpest rate rarely sits with your current lender.
- Get pre-qualified: confirm serviceability with the most suitable lender before lodging, to protect your credit file.
- Apply and supply documents: income, ID, existing loan statements.
- Valuation and approval: the lender values your property and issues formal approval.
- Discharge and settlement: your old loan is paid out and the new mortgage is registered.
Which refinance fits your situation?
Our decision guide to the best refinance home loan by situation sorts ten borrower types, from a fixed rate ending to an expat refinance, and says which lane you are in.
- Investment property: the same process with investor pricing and shaded rental income; see refinance an investment property loan.
- Releasing equity: see cash-out refinance.
- HSBC customer: HSBC’s loan book moves to Pepper Money in 2027 and you cannot opt out, but you can refinance your HSBC home loan before it happens.
- Suncorp Bank customer: see Suncorp Bank moving to ANZ.
- Living abroad: see the Australian expat home loans guide.
Refinancing a home loan: frequently asked questions
What does refinancing a home loan mean?
Refinancing means replacing your existing home loan with a new one, with your current lender or a different one, to secure a better interest rate, access equity, gain better features or change your loan structure. The new loan pays out the old one and you repay under the new terms.
Is it worth refinancing a home loan in 2026?
For many borrowers, yes. With the RBA cash rate at 4.60% from 30 September 2026, the average variable rate around 6.84% in May 2026 (about 7.09% after the 0.25 point rise passed on from 9 October 2026) and the lowest lender-published variable rates at 6.20% to 6.24% read from lender rate pages on 17 October 2026, anyone above the average is likely overpaying.
What is the best refinance home loan rate right now?
There is no single best rate. The lowest owner occupier variable rates in our table, read from each lender page on 17 October 2026, sit between 6.20 and 6.69 per cent, each at its lowest loan to value band. Your rate depends on your loan to value ratio, loan size and income, so the published card is the starting point, not the offer.
How much can I save by refinancing?
It depends on your rate gap and loan size. Switching from about 7.09% to 6.24% on a $736,259 loan over 30 years saves about $4,970 a year before costs (7.09% is the May 2026 average of 6.84% plus the 0.25 point rise lenders passed on from 9 October 2026; 6.24% is the lowest variable rate in our table from a major bank, read from the lender page on 17 October 2026). The figure is illustrative.
How much does it cost to refinance a home loan?
Typically a few hundred dollars: a discharge fee (often $300 to $400), small government fees, and sometimes a valuation. Break costs apply only inside a fixed period. Many lenders offer cashback of $2,000 to $4,000 that commonly covers these costs.
How long does it take to refinance a home loan in Australia?
Usually 4 to 6 weeks from application to settlement, though clean files with cooperative lenders can be faster. The discharge process at your existing lender is the most common bottleneck, often taking 2 to 3 weeks on its own, however fast the new lender moves.
How much equity can I access when I refinance?
Generally up to 80% of the current value of your property minus your existing loan balance, before lenders mortgage insurance applies. On a $750,000 home with a $480,000 loan, that is roughly $120,000 of usable equity. The lender also assesses whether you can service the larger loan.
Does refinancing hurt my credit score?
A single refinance creates one credit enquiry with only a minor short-term impact. Using a broker, who pre-qualifies your file with the most suitable lender before lodging, helps protect your credit profile. Once settled, the refinance itself does not harm your score.
Should I use a mortgage broker to refinance my home loan?
A broker compares many lenders, handles the paperwork and the discharge, and structures the loan correctly, at no cost to you, because the broker is paid by the lender at settlement. Going direct limits you to the products of one bank.
Can I refinance my home loan for a lower rate without changing lenders?
Yes. Asking your current lender for a reprice can give you a lower rate without the paperwork of a full refinance, and retention teams routinely cut rates for customers who show a competing offer. If the reprice falls short, a refinance to another lender is the next step.
Go deeper on your situation. Run your own numbers on the refinance savings calculator, check when refinancing actually pays, weigh cashback offers against the rate, compare staying with your bank versus switching, and if you are living abroad, see refinancing from overseas.