Refinance Home Loan? Discover How to Save Big (2026)

Many homeowners find themselves asking, "Can I refinance my home loan after just one year?" Whether you’re looking to benefit from a lower interest rate, change your loan terms, or access additional funds, refinancing can be a smart financial move. However, navigating the refinancing landscape requires understanding the current market, eligibility criteria, and the potential benefits and pitfalls. Let’s dive into how you can make refinancing work for you.

Understanding Refinancing

Refinancing involves replacing your existing home loan with a new one, usually to secure better terms. This process can help reduce your monthly repayments, shorten your loan term, or allow you to tap into your home equity. However, refinancing too soon after your initial loan can present challenges, especially if you are not aware of the costs and potential benefits.

Refinancing in 2026: Rates, Requirements, Options

The Australian mortgage market in 2026 presents a dynamic landscape. Current interest rates for refinanced home loans range from 6.49% to 12%, depending on your financial profile and the lender's terms. With access to over 83 lenders through Esteb and Co, finding a competitive rate is possible, but it requires understanding the key factors that influence eligibility and loan terms.

Here’s a quick overview of what you need to know:

Factor	Details	Considerations
Interest Rates	6.49% - 12%	Dependent on credit score and loan-to-value ratio (LVR)
Eligibility	Credit score, income stability, LVR	Higher LVR might attract higher rates
Costs	Exit fees, valuation fees, application fees	Weigh these against potential savings
Loan Terms	Fixed, variable, split	Choose based on financial goals and stability

Steps to Refinance Your Home Loan After 1 Year

Refinancing after one year can be beneficial, but it requires strategic planning. Here’s a step-by-step guide to help you through the process:

1. Assess Your Financial Position: Review your credit score, existing loan terms, and financial goals. Calculate your current loan-to-value ratio to understand your borrowing power.
2. Research Lenders: Use Esteb and Co’s extensive network of 83+ lenders to find competitive offers that suit your needs.
3. Calculate Costs: Consider all the fees associated with refinancing, such as discharge fees from your current loan and any upfront costs for the new loan.
4. Prepare Documentation: Gather necessary documents, including proof of income, current loan statements, and identification.
5. Apply for Pre-Approval: Once you’ve selected a lender, apply for pre-approval to understand your borrowing capacity and secure a favourable rate.
6. Complete the Application Process: Submit your application along with required documents to the chosen lender.
7. Settle the New Loan: Once approved, work with your lender to settle your old loan and start fresh with your new mortgage terms.

Tips and Considerations

As you consider refinancing, keep these expert tips in mind to ensure a smooth transition:

• Timing Is Key: If market conditions are favourable and your financial situation has improved, refinancing can be a strategic move.
• Beware of Fees: Ensure that the benefits of refinancing outweigh the costs, including any early exit fees from your current loan.
• Consider Loan Features: Evaluate whether a fixed or variable rate suits your financial situation, or if a split loan might offer the flexibility you need.
• Consult a Broker: Engaging a mortgage broker like Esteb and Co can provide access to a wide range of lenders, ensuring you find a loan that fits your needs.

Frequently Asked Questions

1. Is it too soon to refinance a home loan after one year? While it’s possible, ensure the benefits outweigh the costs, particularly if exit fees apply.
2. What are the risks of refinancing too early? Potential drawbacks include high fees, longer loan terms, and the risk of losing favourable terms from your original loan.
3. How does my credit score affect refinancing? A higher credit score can improve your chances of securing a lower interest rate and better loan terms.
4. Can I access equity through refinancing? Yes, refinancing can allow you to access equity, which can be used for renovations, investments, or other financial needs.
5. What documents are required for refinancing? Typically, you’ll need proof of income, identification, and details of your current loan.
6. How long does the refinancing process take? Generally, the process can take 4-6 weeks from application to settlement.
7. Should I switch from a fixed to a variable rate? This decision depends on market conditions and your financial goals. Consult a broker to explore your options.