Is it worth refinancing right now?

Refinancing - moving your home loan to a different product or lender - can be one of the smartest financial moves you make, or an expensive distraction. The difference comes down to your numbers, not a headline rate.

Why people refinance

The common reasons are a sharper interest rate, accessing equity for renovations or an investment, consolidating other debts into a lower-rate loan, or changing the loan structure (for example, adding an offset account or switching between fixed and variable). A good reason is one that improves your overall position, not just your rate on paper.

The costs to weigh

Switching isn't free. Depending on your loan you might face a discharge fee from your current lender, application or valuation fees with the new one, and - if your equity is under 20% - potentially LMI again. If you're on a fixed rate, breaking it early can carry a significant cost. None of these are dealbreakers on their own, but they all belong in the calculation.

How to run the numbers

The honest test is total cost over time, not the advertised rate. Work out what you'd save each month, subtract the switching costs, and see how long it takes to break even. If you'll comfortably pass that point well before you'd sell or refinance again, it often stacks up. Our refinance calculator is a quick way to get an indicative figure before you commit.

When it might not be worth it

On a small remaining balance, the savings can be too thin to justify the costs. Heavy exit or fixed-break fees can wipe out the benefit. And refinancing simply to access a cashback offer rarely makes sense if the underlying rate or structure is worse. The point is to switch for the right reasons.

The bottom line

Refinancing is worth it when the long-run numbers clearly favour it and the new loan genuinely suits your goals. The quickest way to know is to have someone run a proper comparison across the market for your situation.