Refinancing Your Home Loan in Sydney: When It's Worth It
5-minute read — a practical framework for calculating your break-even point and deciding whether switching lenders makes sense.
Refinancing Questions — Answered
How do I calculate my break-even point?
Divide your total switching costs by your monthly savings. If switching costs $3,000 and you save $250/month, your break-even is 12 months. If you plan to hold the loan beyond that, refinancing makes financial sense.
Can I access equity when I refinance?
Yes. If your property's value has increased since you purchased, you may be able to refinance to a higher loan amount and draw on the equity. We assess this as part of your strategy call.
Will refinancing affect my credit score?
Each credit application leaves an enquiry on your credit file. We assess your options thoroughly before submitting an application to avoid unnecessary enquiries.
Can you help refinance a loan my current lender won't restructure?
Yes. This is one of the most common reasons clients come to us. We access 30+ lenders and specialist funders, including options for borrowers who've been declined or are in a default position.
How long does refinancing take?
Typically 2–4 weeks from application to settlement. We manage the process end-to-end to keep things moving.
Is it worth refinancing for less than 0.5% savings?
It depends on your loan size and remaining term. On a large loan, even 0.25% matters. We run the numbers specific to your situation so you can make an informed decision.
The Real Costs of Switching Lenders
The savings need to outweigh these costs — here's exactly what to account for before you commit.
Discharge Fee
Your current lender charges a fee to close your loan, typically $150–$400 depending on the lender.
Break Costs (Fixed Rate Only)
If you're breaking a fixed rate period early, break costs can be substantial — sometimes tens of thousands. Always calculate this first.
New Lender Application Fees
Some lenders charge establishment or valuation fees, though many waive these as a switching incentive.
LMI Again (If Your Equity Is Under 20%)
If your loan-to-value ratio is above 80%, you may need to pay Lenders Mortgage Insurance again with your new lender. This is a critical factor to check.
Settlement and Legal Fees
Typically $200–$500, depending on whether a solicitor or conveyancer is involved.
When Refinancing Actually Makes Sense
Four signs it's worth reviewing your loan: your rate is 0.5% or more above what comparable lenders offer (on a $600,000 loan, that's $3,000 a year in extra interest); your loan no longer fits your circumstances, such as a structure built for a single income that now needs to support a growing household; you want to access equity that's built up in your property; or your fixed rate is about to expire and revert to a higher variable rate.
Many borrowers stay with a lender longer than they should — either because they assume the savings aren't worth it, or because the process feels too complicated. We remove both barriers.
We compare your current loan against what's available across 30+ lenders, calculate your break-even point, and handle the full refinancing process from application to settlement.
Ready to Review Your Current Loan?
Discover whether a refinance could help improve your repayments, cash flow or long-term financial position — no obligation, no cost.