Home Loan Refinancing FAQs
How can I qualify for the best refinance rates?
Qualifying for the best refinance rates depends on several factors, including your credit score, debt-to-income ratio, loan-to-value ratio, employment history, and the overall health of your financial situation. To improve your chances of securing better rates, focus on improving your credit score, reducing existing debt, increasing your income, and speaking with your broker to compare offers from multiple lenders.
How much can I save by refinancing?
The amount you can save by refinancing depends on various factors, such as your current interest rate, the new interest rate you qualify for, the remaining term of your loan, and any associated fees.
You can use our home loan refinance calculator to find out how much you can save by refinancing.
How much equity do I need to consider refinancing?
Generally, you need at least 20% total equity in your home to refinance the loan. If you have less than 20% total equity in your home, you may still be able to refinance but you may have to pay LMI again.
What are the costs associated with refinancing?
Refinancing costs vary, but they range between $900 – $3,500. The costs associated with refinancing your home loan may include:
- Application fees;
- Loan origination fees;
- Appraisal/Valuation fees;
- Title search and insurance fees;
- Closing costs;
- Prepayment penalties (if applicable); and
- Mortgage insurance premiums (if applicable).
Is refinancing right for me? Why would someone refinance?
Reasons why people refinance:
- To get a better interest rate and reduce monthly repayments
- To access equity for renovations, investments, or large expenses
- To consolidate debts into one manageable loan
- To switch from variable to fixed rate, or vice versa
- To get better loan features, like an offset account or redraw facility
- Because their current loan no longer suits their needs
Is it right for you?
Refinancing could be right for you if:
- Your financial situation has improved
- Your property has increased in value
- You haven’t reviewed your loan in over a year
- Your lender hasn’t offered you a more competitive deal
- You want to pay off your loan faster or gain more flexibility
At Shore Financial, we assess your current loan, compare it across 70+ lenders, and let you know if refinancing could save you money or offer better value.
Can I consolidate credit card or other debts into my mortgage when refinancing?
Yes, you can. Debt consolidation through refinancing allows you to roll high-interest debts (like credit cards, personal loans, or car finance) into your home loan — giving you one simple repayment at a lower interest rate.
Benefits of consolidating debts into your mortgage:
- Lower interest rate compared to credit cards or personal loans
- Simplified repayments — one loan, one due date
- Improved cash flow through reduced monthly repayments
- Less stress managing multiple debts
Keep in mind:
- You may pay off the consolidated debt over a longer period, which could increase the total interest paid over time
- It’s important to address spending habits so you don’t rebuild high-interest debt again
At Shore Financial, our brokers can help you assess whether consolidating your debts into your mortgage is the right move — and structure your loan to save you the most over the long term.
How often should I refinance my mortgage?
A good rule of thumb is to review your home loan every 1–2 years, or whenever your financial circumstances change. You don’t necessarily need to refinance that often, but regular reviews help ensure your loan remains competitive.
You should consider refinancing if:
It’s been more than 2 years since your last loan review
- Your interest rate is higher than current market rates
- Your property value has increased
- Your financial circumstances have changed
- You’re coming off a fixed-rate loan
- You want to access equity for renovations, investments, or major expenses
- Your financial goals have changed (e.g. wanting to pay off the loan faster or reduce repayments)
- You’re looking to consolidate debts
Even a small reduction in your interest rate can save you thousands over the life of your loan.
At Shore Financial, we offer free annual loan reviews to help ensure you’re always getting the best deal — so you only refinance when it truly benefits you.
Important questions to ask when refinancing a home loan?
Before refinancing your home loan, it’s crucial to ask the following questions:
- What is your current interest rate and how does this compare to interest rates on offer?
- What fees and closing costs are associated with refinancing with my current bank, and can they be rolled into the new loan?
- Are there any prepayment penalties or exit fees associated with paying off my existing mortgage early?
- What loan terms and features are available, and how do they align with my financial goals?
- Can I lock in a fixed interest rate to protect against future rate increases?
- Will refinancing affect my credit score or eligibility for future loans?
Refinancing can be a complex and confusing process, and there are many factors to consider before making a decision. Our Shore Financial specialists will happily answer any of your questions and streamline the process for you.
