Rate, fixed term ending, equity, debts or features. A quick way to work out whether switching your home loan is worth the effort.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
28 October 2026
Last revised
11 November 2026
Reading time
5 min read
TL;DRIn a nutshell
✓Rate gap: if new-customer rates are well below yours, it is worth a review.
✓Fixed term ending: the revert rate is often higher than what you could get elsewhere.
✓Equity: if your home has grown in value, you may drop below 80% and qualify for sharper pricing.
✓Costs: switching fees and any break costs need to be weighed against the saving.
The five signs it's time to look
Lenders tend to save their best rates for new customers. If you haven't reviewed your loan in two or three years, there's a good chance you're paying more than you need to.
Five signs to review your loan
1
Your rate is higher than new-customer rates
A gap of even 0.3% adds up over the life of a loan.
2
Your fixed term is ending
Most loans roll onto a higher revert rate.
3
Your property has gone up in value
More equity can mean a lower rate tier.
4
You have other debts
Consolidating may lower your total repayments.
5
Your loan lacks features you need
Offset, redraw or splits can save interest.
What a small rate cut is worth
A difference that looks small on paper can be worth thousands a year. The example below compares a $600,000 loan over 30 years.
Monthly repayment on $600,000 over 30 years (example)
At 6.50%$3,792
At 6.00%$3,597
That's about $195 a month, or roughly $2,300 a year. Figures are illustrative only.
The costs to weigh up
Refinancing usually involves a discharge fee from your current lender, government registration fees and sometimes an application or valuation fee. Many lenders waive their own fees or offer cashback.
If you're on a fixed rate, ask your lender for a break cost estimate first. It can sometimes wipe out the saving.
"Before we refinance anyone, I show them the numbers side by side: what they pay now, what they would pay, and how long until the switching costs are covered."
Anthony Nocon, Financeo
How the switch works
Once you choose a new loan, the new lender pays out your old one at settlement. You keep living in the home and nothing changes day to day. Most refinances take three to six weeks.
01
Only comparing the headline rate
Fees, features and the comparison rate matter too.
02
Resetting the loan term without realising
Extending to 30 years again lowers repayments but can add interest overall.
03
Applying with lots of lenders yourself
Multiple credit enquiries can count against you.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
Tick the boxes above to see where you stand.
Frequently asked questions
A new application adds a credit enquiry, which can have a small, temporary effect. Applying through one broker rather than several lenders keeps enquiries to a minimum.
This article is general information only and doesn't take your circumstances into account. Lending rules, rates and thresholds change, so check current details or speak with us before acting.
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
Rate, fixed term ending, equity, debts or features. A quick way to work out whether switching your home loan is worth the effort.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
28 October 2026
Last revised
11 November 2026
Reading time
5 min read
TL;DRIn a nutshell
✓Rate gap: if new-customer rates are well below yours, it is worth a review.
✓Fixed term ending: the revert rate is often higher than what you could get elsewhere.
✓Equity: if your home has grown in value, you may drop below 80% and qualify for sharper pricing.
✓Costs: switching fees and any break costs need to be weighed against the saving.
The five signs it's time to look
Lenders tend to save their best rates for new customers. If you haven't reviewed your loan in two or three years, there's a good chance you're paying more than you need to.
Five signs to review your loan
1
Your rate is higher than new-customer rates
A gap of even 0.3% adds up over the life of a loan.
2
Your fixed term is ending
Most loans roll onto a higher revert rate.
3
Your property has gone up in value
More equity can mean a lower rate tier.
4
You have other debts
Consolidating may lower your total repayments.
5
Your loan lacks features you need
Offset, redraw or splits can save interest.
What a small rate cut is worth
A difference that looks small on paper can be worth thousands a year. The example below compares a $600,000 loan over 30 years.
Monthly repayment on $600,000 over 30 years (example)
At 6.50%$3,792
At 6.00%$3,597
That's about $195 a month, or roughly $2,300 a year. Figures are illustrative only.
The costs to weigh up
Refinancing usually involves a discharge fee from your current lender, government registration fees and sometimes an application or valuation fee. Many lenders waive their own fees or offer cashback.
If you're on a fixed rate, ask your lender for a break cost estimate first. It can sometimes wipe out the saving.
"Before we refinance anyone, I show them the numbers side by side: what they pay now, what they would pay, and how long until the switching costs are covered."
Anthony Nocon, Financeo
How the switch works
Once you choose a new loan, the new lender pays out your old one at settlement. You keep living in the home and nothing changes day to day. Most refinances take three to six weeks.
01
Only comparing the headline rate
Fees, features and the comparison rate matter too.
02
Resetting the loan term without realising
Extending to 30 years again lowers repayments but can add interest overall.
03
Applying with lots of lenders yourself
Multiple credit enquiries can count against you.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
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Frequently asked questions
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This article is general information only and doesn't take your circumstances into account. {{ discText }}
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
