Should you refinance your home loan in 2026?
Most borrowers who haven't reviewed their loan in the last two years are paying more than they need to. Refinancing is one of those things people talk about but rarely act on — either the timing feels off, or they assume they're already on a good rate. Here's how to think about it clearly.
What does refinancing actually mean?
Refinancing means replacing your existing home loan with a new one — either with the same lender or a different one. The goal is usually to get a lower rate, reduce repayments, access equity, or improve loan features.
When does refinancing make sense?
✅ Good reasons to refinance
- You can get a rate at least 0.5% lower
- Your fixed rate is expiring
- Your property value has increased
- You want to access equity
- Your income has improved significantly
⚠️ When to be cautious
- Mid fixed-rate term (break costs can be high)
- Recent credit issues
- Planning to sell in under 2 years
- Savings don't outweigh switching costs
What the numbers actually look like
$600,000 loan at 6.7% refinanced to 6.1% with 25 years remaining:
- Old monthly repayment: ~$4,133
- New monthly repayment: ~$3,924
- Monthly saving: ~$209
- Annual saving: ~$2,500
Over five years: $12,500+ in savings. That's meaningful money.
Break costs, discharge fees, and new loan establishment fees all reduce your net saving. A broker models the true cost so you can compare apples with apples.
Want to see if refinancing saves you money?
We'll run the numbers on your current loan and tell you honestly whether it's worth switching.
What does the refinancing process look like?
- Step 1: Share your current loan details with your broker
- Step 2: We compare 40+ lenders and model the true saving
- Step 3: We submit the application to the new lender
- Step 4: The new lender pays out the old one — you don't touch anything
- Step 5: Settlement — typically 4–6 weeks from application
What about my current lender?
Sometimes the best move is staying put — but using a broker's comparison as leverage to negotiate a rate reduction with your existing lender. We'll tell you which option is better for your situation.