Eternity Group

Finance — Refinancing

Refinancing Your Home Loan

Refinancing is sometimes about rate, often about structure. We scope rate, term, fixed-vs-variable mix, equity release and debt consolidation options against lender policy and the costs of switching — then document the recommendation in writing before any application.

Book a Refinance ReviewSee Our Process
  • Rate review
  • Structure review
  • Fixed-rate expiry
  • Equity release
  • Debt consolidation

Mr Rohan Manokaran (Credit Representative 565110) is authorised under Australian Credit Licence 561324 held by Loans Only Pty Ltd. Information on this page is general in nature and does not take into account your objectives, financial situation or needs. Credit eligibility, lender criteria, fees and charges apply.

Reasons to review

When refinancing genuinely makes sense.

Not every refinance is worth doing. The cases below are when a review tends to add value — costs included, with the answer documented in writing before any application.

Repayment pressure

Cash flow review · structure review

Where monthly repayments are causing genuine cash-flow stress, a structure review can sometimes reduce the immediate burden — through term extension, interest-only periods (subject to lender policy), or a different loan product. The trade-off is total interest paid over the life of the loan, which we model.

Fixed-rate expiry

Reversion rate vs market

Lenders typically reprice expiring fixed-rate loans onto the current variable rate, which is not always the best rate available. A review 1–3 months before your fixed-rate expiry lets you compare the reversion rate to the market.

Structure change

Fixed/variable split · interest-only · offset

Sometimes the right move is not to switch lenders but to restructure the existing facility — splitting between fixed and variable, adjusting the offset balance, or repositioning the loan for an investment-property purpose. Structure can matter more than rate.

Equity release

Renovation · investment · cash flow

Releasing equity at refinance is common for renovations, school fees, investment property deposits or business cash flow. Loan purpose matters for tax positioning where the released funds are used for investment; the work sits alongside the tax side of the practice.

Handled with extra care

Debt consolidation

Caution · breakeven · total cost

Consolidating personal-loan or credit-card debt into a home loan can lower monthly repayments — but the longer term may mean more total interest unless higher repayments are maintained. We document the breakeven and total-cost picture in writing before this is implemented.

Investment-loan switch

Owner-occupier ↔ investment

Where a property changes use (becomes a rental, or returns to owner-occupier), the loan purpose and lender pricing change. Refinance is sometimes the cleanest way to align the loan with the new use of the property.

Process

From scoping call to settlement — typically 4–8 weeks.

A document-driven sequence. You see the recommendation in writing — with costs and breakeven — before any formal application.

Scoping call

Understanding why you are considering a refinance, the current loan, the goal, and any timing constraints (fixed-rate expiry, settlement date).

Document collection

Existing mortgage statement, payslips or tax returns, bank statements, debt statements, current credit cards and limits. Read-only access where possible.

Position review

Borrowing capacity, target lender shortlist, structure recommendation, costs of switching, breakeven analysis — documented in writing.

Lender application

Application submitted to the shortlisted lender. Lender applies its own credit and policy assessment. We track and report progress at each milestone.

Unconditional approval & discharge

Unconditional approval triggers discharge coordination with the existing lender, mortgage documents to the solicitor, and the settlement booking.

Settlement & confirmation

Settlement on the agreed date. New loan live, old loan discharged. Settlement confirmation and loan-account details provided in writing.

Costs & breakeven

Worth doing only after the costs are counted.

Refinancing is not always worth it. The switching costs opposite can offset the benefit — and break costs on fixed-rate loans can be material. We model the breakeven and total cost in writing before any application is submitted.

The costs of switching

  • Discharge and registration fees from the existing lender
  • Application and valuation fees at the new lender
  • Potential break costs on fixed-rate loans — these can be material
  • Time and disruption

What the breakeven depends on

  • The rate difference and the loan balance
  • The remaining term and the structure you are moving to
  • Your reasons for moving and your medium-term plans

When to stay put

When refinancing is probably not worth doing.

Some refinances never recover their own costs. These are the situations where the honest recommendation is usually to stay put — or to negotiate with the existing lender rather than switch.

Small balance or short remaining term

On a modest remaining balance, even a meaningful rate improvement produces small dollar savings — while the fixed switching costs stay the same. If the loan will be repaid within a few years, the breakeven point may arrive after the loan has already been discharged. The numbers go side by side in writing before anything is recommended.

Mid fixed term at a competitive rate

Breaking a fixed rate that sits at or below current market pricing rarely stacks up: the break cost absorbs most of the benefit, and the replacement loan may carry a similar or higher rate. Waiting for the fixed expiry — and reviewing 1–3 months before it — is usually the better sequence.

Your position has weakened since the loan settled

A refinance is a fresh application, assessed under current lender policy. If income has fallen, liabilities have grown or employment has recently changed, the new lender's assessment may be less favourable than the loan you already hold. Repricing with the existing lender preserves the facility while the position rebuilds.

Selling within the next year or two

Upfront switching costs are recovered over time, and a short holding period may not give the savings enough runway. Where a move is likely, loan portability or a simple repricing request with the existing lender often serves better than a full refinance — and keeps discharge to a single event.

Documents

What a refinance review actually needs.

Refinance documents are lighter than a purchase application — there is no contract of sale — but the new lender still verifies income, liabilities and the conduct of the loan being replaced. Gathering these before the scoping call shortens the timeline noticeably.

Loan conduct matters here: the new lender reviews the repayment history of the loan being refinanced. A clean recent history strengthens the application; recent missed payments usually mean waiting is the better course. What each lender accepts depends on its own assessment.

The document checklist

  • Photo identification for each borrower
  • Six months of statements for the home loan being refinanced
  • Two recent payslips — or the most recent tax returns and Notices of Assessment if self-employed
  • Statements for all other debts: credit cards, personal and car loans, HECS-HELP balance
  • A recent council rates notice for the security property

Worth doing before the scoping call

  • Ask your existing lender for a payout figure — and a break-cost quote if any part of the loan is fixed
  • Note the expiry date of any fixed-rate period, so the review is timed ahead of it
  • List current credit-card limits, not just balances — lenders assess the limit

During the switch

Offsets, direct debits and cards — the practical handover.

Settlement closes the old loan and every account attached to it. The everyday banking that hangs off the loan needs its own plan — three things catch borrowers out.

Offset accounts

Balance moves manually

When the old loan is discharged, its offset account closes with it. Opening the new lender’s offset before settlement — and moving the balance on or just after settlement day — keeps the funds offsetting interest with minimal gap.

Direct debits & salary

Redirect before settlement

Debits linked to the old offset or transaction account — insurance, utilities, subscriptions, salary crediting — are not forwarded. Listing them from three months of statements before settlement, and keeping the old account open briefly to catch stragglers, avoids failed payments.

Cards & packages

Bundled products end too

A debit card tied to the old offset stops working when the account closes, and a credit card bundled into a loan package may lose its package terms once the loan discharges. Confirm both with the old lender before settlement is booked.

Frequently asked questions

Refinancing — common questions.

Common questions

Is refinancing always worth it?

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.

What is a typical refinance timeline?

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.

What is a fixed-rate break cost and when does it apply?

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.

Can I release equity from my home while refinancing?

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.

Should I consolidate other debts into my home loan?

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.

My fixed rate is expiring soon — what should I do?

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.

Will refinancing affect my credit score?

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.

Can I ask my current lender for a better rate instead of refinancing?

Often, yes — and it is frequently the first step we suggest. Lenders have retention teams and will commonly reprice an existing loan when asked, particularly where a borrower's pricing has drifted above what the same lender offers new customers. Repricing avoids discharge fees, a fresh application and a credit enquiry. Its limitation is that it only addresses rate — it cannot change lender, restructure the facility, or release equity beyond the existing lender's policy. We compare the repriced position against a genuine switch before recommending either path.

What happens to my offset account and direct debits when I switch lenders?

An offset balance does not move automatically. At settlement the old loan and its offset account are closed, so the balance needs a destination — usually the new lender's offset, opened before settlement so funds keep working from day one. Direct debits and salary crediting tied to the old account must be redirected manually. We flag both in the position review so the switch date is planned, not discovered.

Do you charge a broker fee on a refinance?

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.

How we are paid

How we are paid: Eternity Mortgage Solutions typically receives commissions from the lender for loans arranged on your behalf. A full explanation of how we are paid, our lender panel and any potential conflicts of interest is provided in our Credit Guide and Credit Proposal Disclosure document, available on request before any loan application is submitted.

Related

Where this fits in the bigger picture

Refinancing rarely sits in isolation. Pre-approval, the underlying home loan options, the investment-property pathway and the One Roof engagement model all connect.