Refinancing Your Home Loan

No. Refinancing has costs — discharge and registration fees from the existing lender, application and valuation fees at the new lender, potential break costs on fixed-rate loans, time and disruption. Whether refinancing makes sense depends on the rate difference, the loan balance, the remaining term, the structure you are moving to, your reasons for moving, and your medium-term plans. We model the breakeven and total cost in writing before any application is submitted.

From scoping call to settlement is typically 4–8 weeks. New lender assessment and unconditional approval is usually 2–4 weeks; discharge and settlement coordination with the existing lender takes a further 2–4 weeks depending on lender responsiveness. We confirm the indicative timeline at engagement and provide written updates at each milestone.

If you refinance away from a fixed-rate loan before the fixed term expires, the existing lender may charge a break-cost fee — calculated based on the difference between the fixed rate you locked in and the lender's current cost of funds for the remaining fixed period. Break costs can be material; in some periods of falling rates they have been many thousands of dollars. The existing lender provides a current break-cost figure on request. We factor any break cost into the breakeven analysis.

Yes, subject to lender policy and serviceability. Equity release at refinance is common for renovations, school fees, investment property deposits, debt consolidation or business cash-flow purposes. The loan purpose matters — equity released for investment may have different tax treatment from equity released for personal use, and lender policy on cash-out limits varies. We document the purpose at application.

Sometimes it makes sense; often it does not. Consolidating credit-card or personal-loan debt into a home loan can reduce monthly repayments because the home loan rate is typically lower and the term is longer — but the longer term often means you pay more interest over the life of the consolidated debt unless you maintain the higher pre-consolidation repayments. Debt consolidation should be assessed in writing, with breakeven and total-cost numbers, before it is implemented.

Lenders typically reprice expiring fixed-rate loans onto the current variable rate, which can be higher (or lower) than market. Before your fixed term expires, it is worth comparing your existing lender's reversion rate to the rates available on the market, accounting for switching costs. We can model both options and document the recommendation in writing.

Submitting a new loan application creates a credit enquiry on your file. A single, well-prepared application is usually a minor event. Multiple applications across several lenders in a short period — sometimes called "rate shopping" — can be reflected differently on different credit-bureau models. The practical implication: do not let multiple lenders run separate credit enquiries. We pre-assess your shape against the most-likely lender before any formal application.

For standard residential refinances Eternity Mortgage Solutions is typically paid by the new lender on settlement, not by you as the borrower. The Credit Guide and Credit Proposal Disclosure document explain the remuneration model in full. For complex or specialist refinances a fee-for-service arrangement may apply; if so it is confirmed in writing before work starts.