What refinancing could really save youRefinancing: Is it worth the hassle? Let’s be honest — most people don’t give their mortgage much thought after settlement. Life gets busy, rates go up and down, and unless your repayments skyrocket, it’s easy to assume your loan is still doing the job.
But here’s the thing: around 7 in 10 mortgage holders don’t know their current rate, and many are sitting on higher-than-necessary repayments because they’ve stayed loyal to a lender that’s quietly moved on.
Rates are starting to ease, but they’re coming off a high base. That means a lot of borrowers are still stuck with rates that are significantly above what’s available — especially if their fixed term ended recently, or they haven’t reviewed their loan in over 18 months.
Refinancing could be your chance to reset: to lock in a better deal, access your equity, or even just add features that make your loan work harder. This page explains the costs, benefits, and whether it might be worth exploring for you.
What is refinancing?
Refinancing means replacing your current mortgage with a new one. Most people do this with a different lender, although in some cases, it can be with the same bank if they’re offering a better product.
People refinance for all sorts of reasons. Some want a lower interest rate. Others want access to their equity — money they’ve built up through rising property values or by paying down their loan. Some borrowers refinance to consolidate other debts into their mortgage, or to switch to a loan with more flexible features like offset accounts, redraw, or interest-only periods.
The key idea is that your mortgage should evolve with your life. If your current loan was set up years ago, or during a different financial stage (e.g. before kids, before a pay rise, before a renovation), it might no longer be the best fit. Refinancing helps realign your loan with your goals — whether that’s to reduce stress on your monthly cashflow or to accelerate your wealth-building strategy.
Why do people refinance?
While every situation is different, here are some of the most common reasons people choose to refinance — and what it could do for them:
| Reason | Potential Benefit |
|---|---|
| Paying a high interest rate | Lower your monthly repayments and save on total interest |
| Built-up equity in the home | Use it to renovate, invest, or consolidate higher-interest debt |
| Loan features don’t suit anymore | Switch to a loan with an offset account, redraw, or flexible repayments |
| Life has changed | Adjust your loan to match a new income, family situation, or property goal |
| Want to reduce monthly outgoings | Explore longer terms or interest-only options to improve cashflow |
If you’re not sure whether you fit into any of these boxes — you might still benefit from checking in. Sometimes, the biggest savings come from small adjustments.
But doesn’t refinancing cost money?
Yes, refinancing isn’t free — and it’s important to be clear about that. But in many cases, the savings far outweigh the cost (and the effort is surprisingly low when you work with a broker who handles the paperwork for you).
Here’s a typical cost breakdown for refinancing:
| Cost | Approx. Amount |
|---|---|
| Discharge fee (charged by your current lender) | $350 |
| Government charges (varies by state) | $350 |
| Settlement fee (from new lender) | $200 |
| Total estimated cost | $900 per property |
These fees are usually added to your new loan, not paid upfront. So you don’t necessarily need to come up with cash to refinance — just make sure the savings make it worthwhile.
What could you save by refinancing?
Even a modest drop in your interest rate can make a noticeable difference to your monthly repayments — and your long-term interest costs.
Let’s say you refinance a $600,000 loan and secure a rate that’s 0.50% lower:
| Loan Amount | Old Rate | New Rate | Monthly Saving | Annual Saving |
|---|---|---|---|---|
| $600,000 | 6.40% | 5.90% | ~$193 | ~$2,316 |
| $800,000 | 6.40% | 5.90% | ~$258 | ~$3,096 |
| $1,000,000 | 6.40% | 5.90% | ~$322 | ~$3,864 |
The bigger the loan, the bigger the saving — but even on smaller loans, the compounding benefit of lower interest can be significant. And if you’re using the refinance to access equity and invest, the savings can go even further.
Emma and Josh had an $850,000 home loan. Their fixed rate had ended and their lender rolled them onto a 6.60% variable rate. They weren’t sure if that was competitive — until we checked for them.
We helped them refinance to a 5.74% rate with a lender that better suited their financial goals. Their monthly repayments dropped by $458, and over the course of the year, they saved more than $5,496.
The cost to switch was around $900 — which they recouped within the first two months. Everything after that? Straight back into their pocket.
Not sure where to start?
The first step is knowing your current rate. If you’re not sure what you’re on, we can help you find out. From there, it’s about seeing whether better options are available — and if switching would actually save you money.
In a quick, free 30-minute strategy session, we’ll help you:
- Identify what you’re currently paying and whether it’s competitive
- Compare options from dozens of lenders
- Calculate the real cost of refinancing (no sugar-coating)
- Show you the potential savings
- Decide whether it’s worth it for your situation
If it stacks up, we’ll help you make the move. If it doesn’t, you’ll know you’re in the right place.