Change Your Home Loan – Gain Control Fast (2026)

Are you feeling bogged down by your current home loan? Perhaps you're wondering if there's a better deal out there that could save you money or offer more favourable terms. The good news is, you can change your home loan to another bank, and doing so could significantly improve your financial situation. In this article, we'll guide you through everything you need to know about switching your home loan to another bank in the current 2026 market, addressing your concerns and providing practical advice to help you make an informed decision.

Understanding Switching Your Home Loan

Switching your home loan, also known as refinancing, involves taking out a new mortgage with a different lender to replace your existing loan. This process can provide numerous benefits, such as lower interest rates, better loan features, or more flexible repayment options. However, it's crucial to understand the costs and implications involved to ensure that refinancing is the right choice for you.

Current Market Rates and Options

As of 2026, the Australian home loan market is competitive, with interest rates ranging between 6.49% and 12%, depending on the lender, loan amount, and borrower's creditworthiness. With over 83 lenders on our panel at Esteb and Co, there are plenty of options to explore. Here are some key factors to consider:

When considering switching, it's important to compare these factors and choose a lender that aligns with your financial goals and lifestyle needs.

Steps to Change Your Home Loan to Another Bank

Refinancing your home loan can be a straightforward process if you follow these steps:

1. Assess Your Current Situation: Calculate your current interest rate, monthly repayments, and any exit fees associated with breaking your current mortgage.
2. Research New Lenders: Use comparison tools and consult with mortgage brokers like Esteb and Co to find a lender offering better terms.
3. Check Eligibility: Ensure you meet the eligibility criteria of the new lender, such as a good credit score and stable income.
4. Prepare Documentation: Gather necessary documents including income statements, credit reports, and current loan details.
5. Submit Application: Apply for the new loan with your chosen lender, ensuring all documentation is accurate and complete.
6. Approval and Settlement: Once approved, the new lender will pay out your existing loan, and you’ll commence repayments under the new terms.

Tips and Considerations

Before making the switch, here are some expert tips to consider:

• Calculate Break Costs: Determine if the savings from a lower interest rate outweigh any break costs or fees associated with exiting your current loan.
• Future Interest Rate Trends: Stay informed about potential rate changes that could affect the long-term benefits of refinancing.
• Loan Features: Consider the value of additional features like offset accounts or redraw facilities, which can offer financial flexibility.
• Long-term Financial Goals: Align your home loan with your long-term financial objectives, such as paying off your loan faster or reducing monthly repayments.
• Consult Experts: Leverage the expertise of Esteb and Co’s mortgage brokers to navigate the complexities of refinancing and find the best deal among our 83+ lenders.

Frequently Asked Questions

1. Can I switch my home loan if I have a fixed-rate mortgage?
   Yes, but be aware of break fees, which can be substantial if you exit before the fixed term ends.
2. How much can I save by refinancing?
   Savings vary, but refinancing could reduce your interest rate by 1-2%, potentially saving thousands over the loan term.
3. Is my credit score affected by refinancing?
   Applying for a new loan can temporarily affect your credit score, but successfully managing the new loan can improve it over time.
4. How long does the refinancing process take?
   Typically, the process can take 4-6 weeks from application to settlement.
5. Are there any tax implications when switching home loans?
   Generally, there are no direct tax implications, but always consult a tax advisor for personal circumstances.
6. What if my home has decreased in value?
   This could affect your borrowing capacity and LVR, so it’s important to discuss options with a mortgage broker.
7. Can I refinance if I'm self-employed?
   Yes, but you may need to provide additional documentation, such as two years of tax returns and financial statements.