Thinking about refinancing? Run through this 10-minute checklist first

Refinancing is one of the few financial decisions where an hour of admin can genuinely save you thousands of dollars a year. It is also oversold — not every loan is worth moving. Before you get excited about a rate you saw advertised, run through this checklist.

1. Find your current rate

You would be surprised how many people don't know it. Check your banking app or latest statement. If your loan has been running for more than two years untouched, there is a fair chance you are paying a "loyalty tax" — lenders reserve their sharpest pricing for new customers.

2. Compare against what you could get

The advertised rate is a starting point, not the finish line. What matters is the rate a lender will actually offer for your loan size, property value and circumstances — and the comparison rate, which folds in most fees. A gap of 0.5% or more on a typical Australian loan balance is usually worth acting on.

3. Count the switching costs

Typical costs to move: a discharge fee from your current lender, government registration fees, and sometimes an application or valuation fee at the new lender. Most refinances land somewhere in the hundreds to low thousands. Divide the cost by your monthly saving to find your break-even point — if you will hold the loan longer than that, the move pays for itself.

4. Check your equity position

If your loan is more than 80% of your property's current value, refinancing may trigger Lenders Mortgage Insurance again — usually a deal-breaker. Values may have moved since you bought — up or down — so get a realistic view of your property's current value first.

5. Think beyond the rate

Refinancing is also the moment to fix structural problems: consolidate a car loan or card debt into one repayment, split your loan between fixed and variable, add an offset account, or release equity for renovations or an investment property. Sometimes the structure is worth more than the rate.

6. Know what lenders will ask

You will need recent payslips, statements for the loans you are moving, and identification. Lenders also look at your repayment history — a clean record for the last six months makes everything smoother.

The maths, done for you

Our refinance savings calculator gives you a fast estimate of monthly savings and your break-even point. When you are ready for real numbers — actual lender pricing against your actual loan — a free assessment takes half an hour and covers all of it.