skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Article | 5-minute read

How to refinance a home loan

Refinancing your home loan should help you find a loan that better meets your needs. Understand what’s involved with our step by step guide on how to refinance a home loan.

What is refinance?

When you refinance a home loan, it means taking out a new home loan to replace your current home loan. Your current home loan is paid out by the new loan and you make repayments towards the new loan

Why you would refinance

Usually people refinance their home loan because the new loan gives them a loan that is better suited for their circumstances. You don’t have to refinance but, if your personal situation or market conditions have changed since you first took out a home loan, it might be time to review your home loan and make sure it’s still meeting your needs. 

Depending on what works best for you and what offers are available, you can choose to refinance your home loan with your current lender or switch to a new lender.

"If your personal situation or market conditions have changed since you first took out a home loan, it might be time to review your home loan and make sure it's still meeting your needs."

5 steps to refinancing your home loan

So is home loan refinance the right move for you and how should you go about it? Here’s our step-by-step guide on how to refinance your home loan.

1. Review your current home loan

The first step is to look at your current home loan and work out:

  • the amount of time left to finish repaying your loan
  • if your loan is fixed, variable or a combination of both
  • how long it’s been since you spoke with your current lender
  • your future plans, both short term and long term
  • your current interest rate
  • what ongoing or annual fees you’re paying
  • how much it’ll cost to exit your loan, especially if you have a fixed rate home loan and may need to pay break costs

It’s also important to consider what you like and don’t like about your current home loan. Do you currently have an offset account? Can you access redraw if you’ve made additional repayments? Does your current lender offer a great online experience? How important are these additional features or services to you? 

Have a good understanding of what your current loan offers, what you want from your home loan and whether there are any gaps.

2. Compare home loans

Now that you know what you have and what you want, do some research about the home loans available. You could do this by researching online or speaking with home loan specialists, either at specific lenders or through a mortgage broker. 

You might be drawn to low advertised interest rates but there’s more to home loans than rates. You should also consider:

  • Fees. Some home loans might offer a low interest rate but come with high annual or ongoing fees. There might also be upfront costs involved in moving to a new lender. Make sure you’re getting a good deal after accounting for all the costs.
  • Features. Will the new loan offer you all the features of your current home loan or at least the features that are important to you?
  • Flexibility. How much flexibility do you need? Would you like to have certainty over your repayments or would you like to be able to make extra repayments or vary your repayment frequency? Does the home loan offer the right balance for you? Is the home loan you’re considering fixed or variable and which is right for you?

What you need to figure out is whether there is a home loan that fits your needs better or offers a better deal than your current home loan. If there is, move to step 3. If there isn’t, it might not be the best time for you to refinance.

3. Speak to your current lender

Armed with a clear idea of what you want from your home loan and what’s available on the market, you’re in a great position to negotiate with your current lender.

Have a conversation with your current lender about your priorities, what’s not working for you and how other home loans could meet your needs better. Ask them what they can offer to keep you as a customer.

If you can negotiate a better deal with your current lender, you could save on some of the costs and paperwork involved in switching to a new lender.

4. Apply for a new home loan

If your current lender isn’t able to offer you what you’re looking for, then it could be time to refinance.

The process is similar to applying for a home loan and you could apply online, at a branch, through a mobile lender or mortgage broker. You’ll need to provide:

  • personal details including your expected future circumstances
  • financial information, including income, living expenses and debt
  • property information.

Having your documents prepared will help this process go more smoothly. 

The new lender will assess your application, check your credit record and have a valuation done to assess how much your property is worth. 

Depending on the lender, you might receive a pre-approval or conditional approval before the valuation is complete, with the final approval coming through when your property has been valued.

Interested in an ANZ home loan? Find out how to apply.

5. Sign your new home loan contract

When your new home loan is approved, your new lender is likely to send you:

  • a letter of offer for your loan (it might be called a credit contract or loan contract)
  • a direct debit form for repayments
  • a mortgage form to give your lender security over your property while you’re repaying your loan
  • a form to advise your current lender that you’re leaving 

You should read the documents your lender sends you carefully before signing them. If you’re unsure about the documents and what they mean for you, consult your lawyer.

If you proceed with the loan and sign the documents, your new lender will arrange settlement with your current lender, which is when your old loan ends and your new loan begins. You may have to pay fees and charges as part of the settlement of the refinancing. 

Bringing it home

And that’s a snapshot of how to refinance your home loan, from start to finish. Depending on your situation, it might only take a few weeks to go from application to settlement.

Ready to switch?

See how you can refinance with ANZ today

Extra tips and tools

Home owner tips and guides

Get practical tips to help you in your property journey, whether you're just starting out, ready to buy, or trying to sell. 

Get tips now

  

Free ANZ Property Profile Reportdisclaimer

Get detailed property and suburb information to help you plan and be more informed when buying, selling or refinancing.

Get a report

  

Contact us or apply

Quick start home loan application

Get started in just 5 minutes to apply for a new home loan, refinance, or pre-approvaldisclaimer

Apply online now

   

Request a call back

Leave your details 

   

Connect with a mobile lender disclaimer

Find a mobile lender

  

Visit a branch or ANZ Home Centre

Find your nearest location

  

Call us

1800 100 641

Mon-Fri 8.00am to 8.00pm (AEST)

   

You can also chat to an ANZ accredited broker for help with your home buying, investing or refinancing needs.

   

You might also be interested in

Article

Fixed vs variable loan: which one may be right for you?

We explore some of the differences between fixed and variable home loans, to help you decide what’s best for you.

  

Article

Things to consider when working out how much to borrow

Once you have a ball-park figure of what you can borrow, you can look for homes in your price range with more confidence.

  

Article

The unexpected costs to consider when buying a house

There’s more to buying a house than meets the eye. It can help to tally up all the costs of home-buying before you start.

  

All applications for credit are subject to ANZ’s credit assessment criteria. Terms and conditions are available on application. Fees and charges apply. Australian credit licence number 234527.

The information on this page does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and read the relevant terms and conditions, Product Disclosure Statement and the ANZ Financial Services Guide (PDF, 104kB) before acquiring any product. 

Applications for credit subject to approval. Terms and conditions available on application. Fees and charges apply.

Property price information in an ANZ property profile report, such as a price prediction or price range, is an estimate, not a valuation. Property price information may not be available for all properties, is for personal domestic use only and may change daily. Actual sale prices may be different.

Back to top

ANZ may provide pre-approval (also known as approval in principle or conditional approval) to eligible customers who apply for an ANZ home loan and complete an application form and satisfy any other applicable requirements. Pre-approval is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ. Australian Credit Licence Number 234527.

Back to top

ANZ Mobile Lenders operate as an independently operated ANZ Mortgage Solutions franchise of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527.

Back to top