Refinancing Your Existing Loans
Why Refinance Your Existing Loans?
💰
Lower Interest Rates
🏠
Access Home Equity
🔧
Better Loan Features
📊
Debt Consolidation
The Cost of Staying Put.... The Loyalty Tax
Real Example: $700,000 Mortgage
Current Rate: 5.90% | New Rate: 5.65% (0.25% reduction)
Annual Savings: $1,750 after-tax
For someone earning $140K (37% tax bracket):
This equals $2,778 in pre-tax income annually
Break-even: Just 4.6 months
Not refinancing is like giving yourself a $2,778 pay cut every year.
What Does Refinancing Actually Cost?
Fixed Lender Costs :
- Discharge fee (old lender): $350
- Establishment fee (new lender): $300
Government Fees by State:
| State | Base Cost | Total |
|---|---|---|
| VIC | $257 | $907 |
| NSW | $329 | $979 |
| QLD | $449 | $1,099 |
| Other | $330-406 | ~$1,000 |
Good News: 67% of borrowers use $0 refinancing packages where lenders waive discharge and establishment fees. You only pay government fees ($257-$449), making break-even under 3 months for most loans.
Break-Even Analysis
See how quickly refinancing pays for itself with real market data.
| Loan Amount | Rate Reduction | Monthly Savings | Break-Even Period |
|---|---|---|---|
| $400,000 | 6.5% → 5.8% | $167 | 6.0 months |
| $650,000 | 6.2% → 5.7% | $216 | 4.6 months |
| $800,000 | 6.8% → 5.9% | $432 | 2.3 months |
| $1,200,000 | 6.4% → 5.6% | $576 | 1.7 months |
With $0 Packages: Break-even periods are even shorter – typically under 3 months for all loan sizes.
Our Refinancing Process
Free Consultation
Find Your Best Deal
Application & Approval
Settlement
Professional Advantage: 75% of borrowers use mortgage brokers because we have access to wholesale rates, negotiate on your behalf, and handle all administration – saving you weeks of work.
2025 Market Outlook
Expert predictions suggest continued rate reductions throughout 2025.
RBA Rate Cuts
Increased Competition
$0 Cost Packages
Enhanced Features
Ready to Save Thousands on Your Existing Loans?
Join thousands of Australians who’ve already refinanced and are saving money every month. Get your free consultation today.
Expert mortgage brokers • 70+ lenders • No upfront fees • Ongoing support
Frequently Asked Questions: Professional Insights
How much can I save by refinancing?
Savings depend on your current rate, loan amount, and new rate. Typical savings range from $200-$800 monthly. A 0.5% rate reduction on a $650K loan saves $216 per month ($2,592 annually).
How long does refinancing take?
The process typically takes 21-35 days from application to settlement. Most borrowers break even within 2-6 months, after which all savings go directly to their pocket.
What are the real costs of refinancing?
Total costs range from $907-$1,099 depending on your state (discharge fee $350 + establishment fee $300 + government fees $257-$449). However, 67% of borrowers use $0 cost packages where lenders waive most fees.
Do I need 20% equity to refinance?
Don’t let this common assumption prevent you from exploring your refinancing options. If equity is a concern, our strategy focuses on leveraging market intelligence to maximize your property valuation. We work to secure fair market assessments while negotiating competitive interest rates that work in your favor.
Can I consolidate debts when refinancing?
Yes, you can consolidate high-interest debts (credit cards, personal loans) into your mortgage at lower rates. Many professionals use refinancing to optimize their entire debt structure and improve cash flow.
Should I fix or stay variable in 2025?
With rates expected to fall throughout 2025, variable rates often offer better value during rate-cutting cycles. We can help you choose the right strategy based on your risk tolerance and financial goals.