REFINANCING · EAST MONEY GUIDE
Should I refinance? Costs, savings and what to check
A refinance is worthwhile when the ongoing benefit, structure and flexibility justify the costs and fit your next few years. Compare the complete before-and-after position rather than the advertised rate alone.
Reviewed September 2026 · General information
Define the result you want
A lower cost, more useful features, debt consolidation, cash flow relief and access to equity are different objectives. A clear goal makes it easier to compare appropriate structures.
Measure the switching cost
Review discharge, application, valuation, settlement and package fees, plus any fixed-rate break costs. Cashback should be treated as one line in the comparison rather than the reason for switching.
- Current rate, fees and remaining term
- New rate, fees and product conditions
- One-off exit and establishment costs
- Simple break-even period and longer-term cost
Keep the loan term honest
Extending the balance over a fresh long term can reduce monthly repayments while increasing total interest. Compare repayments and cost over a consistent remaining term where practical.
Check features and future plans
Offset, redraw, extra repayments, fixed-rate restrictions and the ability to split or refinance again may matter more than a small rate difference. Choose features you expect to use.
Expect a new assessment
Refinancing is a new credit application. The lender may review income, expenses, debts, credit history, property value and the proposed loan purpose.
QUESTIONS PEOPLE OFTEN ASK
Useful points to clarify early.
How often should I review my loan?
A review can be useful when rates, fixed periods, property plans or your financial position changes. Reviewing does not mean switching is always appropriate.
Can I refinance to consolidate debt?
Sometimes, subject to assessment. Spreading short-term debt over a mortgage term can increase total interest unless there is a disciplined repayment plan.
Will my current lender offer a better rate?
It may. Compare any retention offer against the total cost and features of realistic alternatives.
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