Refinance Home Loan – Control Your Rates (2026)

Refinancing your home loan can seem daunting, especially if you're considering staying with your current bank. Maybe you're wondering if it's even possible to refinance with the same lender, or if you should consider switching banks. Perhaps you've heard about potential savings but aren't sure if they'll apply to your situation. Whatever your circumstances, let's dive into the world of refinancing and explore if sticking with your current bank is the right move for you.

Understanding Refinancing with Your Current Bank

Refinancing involves replacing your existing home loan with a new one, typically to secure a lower interest rate, reduce monthly payments, or access equity. Refinancing with your current bank, also known as internal refinancing, means negotiating new terms with your existing lender rather than switching to a new one. This option is often chosen for the convenience of staying with a familiar institution and potentially avoiding some of the fees associated with changing lenders.

Interest Rates, Requirements, and Options

In 2026, the Australian mortgage market is characterised by competitive interest rates, with variable rates ranging from 6.49% to 12%. However, your eligibility for these rates will depend on several factors, including your credit score, loan-to-value ratio (LVR), and overall financial health.

When refinancing with the same bank, you might not always get the best rate advertised, but you can leverage your history and loyalty to negotiate more favourable terms. It's essential to review your current loan terms and compare them with what your bank is offering to new customers. Sometimes, banks reserve the best rates for new clients, but a conversation with your lender might open doors to better rates.

Steps to Refinance with Your Current Bank

Refinancing with the same bank can be a strategic move, but it's important to approach it methodically. Here's how:

1. Review Your Current Loan: Understand your current interest rate, remaining loan term, and any features or fees associated with your loan.
2. Research Current Offers: Check your bank's website or contact a representative to learn about current refinancing options and interest rates.
3. Prepare Your Financial Documents: Gather documents such as payslips, tax returns, and bank statements to demonstrate your financial health.
4. Contact Your Lender: Arrange a meeting with your bank's mortgage specialist to discuss your refinancing options. Be ready to negotiate and highlight your loyalty and payment history.
5. Compare Offers: Consider consulting Esteb and Co, which has access to 83+ lenders, to ensure you're aware of all market options, even if you plan to stay with your current bank.
6. Make a Decision: Evaluate the offer from your bank against others in the market. Decide whether refinancing with your current lender offers the best deal for your situation.
7. Finalise the Agreement: Once satisfied with the terms, complete any necessary paperwork to finalise the refinancing process.

Expert Tips and Considerations

Here are some expert tips to consider when refinancing with the same bank:

• Negotiate Like a New Customer: Don't be afraid to ask for the same rates and benefits offered to new clients. Your loyalty can be a powerful bargaining tool.
• Beware of Fees: Although you might avoid some fees by staying with your current bank, there could still be costs involved in refinancing. Ask about discharge fees, application fees, and ongoing charges.
• Consider Loan Features: Sometimes, a slightly higher interest rate might be worth it if the loan offers features like an offset account or redraw facility.
• Check Your Credit Score: Your credit score plays a crucial role in determining the interest rate you're offered. Ensure your credit report is accurate and address any discrepancies before negotiating.
• Think Long-Term: While lower monthly payments can be appealing, ensure the overall cost of the loan over time is also advantageous.

Frequently Asked Questions

• Can I refinance my home loan with the same bank? Yes, you can refinance your home loan with the same bank. This is known as internal refinancing.
• Will my bank offer me the same rates as new customers? Not necessarily. It's crucial to negotiate and make your case for competitive rates.
• Are there fees associated with refinancing with my current bank? While you might avoid some fees, there can still be costs like discharge fees or application fees. Always ask your lender for a detailed fee breakdown.
• How long does the refinancing process take? Refinancing with the same lender can be quicker than switching banks, often taking between 2 to 4 weeks.
• How can Esteb and Co help in the refinancing process? As a mortgage broking company with access to 83+ lenders, Esteb and Co can provide insights into competitive offers and assist in securing the best deal, even with your current bank.
• What if my bank doesn't offer a better deal? If your current bank doesn't present a favourable offer, consider exploring other lenders to ensure you're getting the best possible terms.
• Is my credit score important when refinancing? Yes, your credit score affects the interest rate you qualify for, so maintaining a healthy credit score is beneficial.