Refinance Loan – Relief Without Switching (2026)

In today's dynamic financial landscape, many Australians are exploring refinancing options to optimise their mortgage arrangements. Whether it's to secure a lower interest rate, access home equity, or consolidate debt, refinancing can be a strategic move. But what if you could achieve these benefits without switching lenders? Yes, refinancing with the same bank is a possibility, and it might be the right choice for you.

Understanding Refinancing with the Same Bank

Refinancing involves taking out a new loan to pay off an existing one, usually to obtain more favourable terms. Many people assume that refinancing means switching lenders, but it's entirely possible to refinance with your current bank. This process, often called a "loan restructure" or "internal refinance," can provide similar benefits to switching banks, such as improved loan terms, without the hassle of changing your financial institution.

When you refinance with the same bank, you maintain your existing relationship, which can simplify the process and potentially offer cost savings. However, it's essential to understand that this option may not always be the best for everyone. Establishing whether it's the right move requires careful consideration of your current situation and future goals.

Current Market Information: Rates, Requirements, and Options

As of 2026, the Australian mortgage market remains competitive, with interest rates ranging from 6.49% to 12% for variable and fixed-rate loans. Refinancing with the same bank can often result in a rate reduction or access to new loan features that weren't available when you first obtained your mortgage.

Most banks require borrowers to meet specific criteria to qualify for refinancing. These typically include:

• A satisfactory credit score, usually above 620
• A stable income and employment history
• A loan-to-value ratio (LVR) of less than 80%
• Demonstrated ability to meet repayment obligations

Options available when refinancing with the same bank may include:

• Switching from a variable to a fixed-rate loan or vice versa
• Accessing equity for renovations or other financial needs
• Consolidating other debts into your mortgage
• Reducing loan term to save on interest payments over time

Steps to Refinancing with the Same Bank

Refinancing with your current bank can be straightforward if you follow these steps:

1. Review Your Current Loan: Understand your existing loan terms, interest rate, fees, and any penalties for early repayment.
2. Evaluate Your Financial Goals: Determine why you want to refinance. Is it to lower monthly payments, pay off the loan faster, or access equity?
3. Research Market Rates and Offers: Compare your current rate with what's available in the market. Esteb and Co, with its access to 83+ lenders, can provide a comprehensive view of your options.
4. Contact Your Bank: Discuss your refinancing intentions with your bank. They may offer a better rate or new features to retain your business.
5. Negotiate Terms: Be prepared to negotiate the terms of the new loan. Highlight your loyalty and good repayment history as bargaining points.
6. Submit Your Application: Complete the necessary paperwork and provide any required documentation, such as proof of income and assets.
7. Approval and Settlement: Once approved, your bank will settle the new loan. Ensure you understand the terms and any new repayment schedule.

Tips and Considerations

When considering refinancing with the same bank, keep these expert tips in mind:

• Check for Hidden Fees: Ensure you understand any fees associated with refinancing, such as discharge fees or new application fees, which could impact your savings.
• Consider Timing: Interest rates fluctuate, so timing your refinance when rates are low can result in long-term savings.
• Analyse Break-Even Point: Calculate how long it will take to recoup the costs of refinancing through your monthly savings.
• Maintain a Good Credit Score: A higher credit score can qualify you for better rates and terms, so keep your credit healthy.
• Consult with a Mortgage Broker: Professionals like those at Esteb and Co can provide personalised advice and help you navigate the refinancing process.

Frequently Asked Questions

1. Can I refinance my loan with the same bank to get a lower interest rate?
   Yes, many banks offer rate reductions to existing customers who refinance, especially if you have a strong repayment history.
2. Is it cheaper to refinance with the same bank?
   Potentially, as you may avoid some fees associated with switching lenders, but it's crucial to compare all costs involved.
3. What documents do I need to refinance with the same bank?
   Typically, you'll need proof of income, identification, and details of any debts or assets.
4. How long does the refinancing process take with the same bank?
   It can be quicker than switching lenders, often taking 2-4 weeks depending on the bank's processes.
5. Will refinancing with the same bank affect my credit score?
   Refinancing involves a new credit inquiry, which may temporarily affect your score, but consistent repayments can improve it over time.
6. Can I change my loan type when refinancing with the same bank?
   Yes, you can switch from a fixed to a variable rate or vice versa, depending on your bank's offerings.
7. What if my bank doesn't offer a better deal?
   Consider consulting with a mortgage broker like Esteb and Co to explore options across 83+ lenders for more competitive deals.