Refinance Home Loan? Save Big Even If Banks Say No
Stuck with high rates? Discover how to refinance with your bank, hassle-free. Unlock savings today with our simple guide.
Are you considering refinancing your home loan but wondering if you can do it with the same bank? With interest rates and market conditions constantly changing, many Australian homeowners are exploring refinancing as a way to adjust their financial commitments. But is staying with your current lender a viable option? Let's explore the ins and outs of refinancing with the same bank and how it could be a strategic move for your financial future.
Understanding Refinancing with the Same Bank
Refinancing your home loan involves replacing your current loan with a new one, potentially securing better terms or lower interest rates. Many homeowners assume they need to switch to a different bank to benefit from refinancing, but that's not always the case. Refinancing with the same bank is possible and can be advantageous, especially if you have a solid relationship with your lender or if they offer competitive rates.
Staying with your current bank could mean streamlined processes, fewer fees, and the retention of benefits you value, like offset accounts or package discounts. Moreover, your existing lender might be willing to negotiate better terms to retain your business, making it a convenient and potentially cost-saving option.
Current Market Rates and Requirements
As of 2026, interest rates in Australia have experienced some fluctuations, with current home loan rates ranging from 6.49% to 12%. These rates depend on various factors such as the loan-to-value ratio (LVR), loan amount, and your credit profile. Refinancing with your existing lender might allow you to renegotiate these terms, particularly if you've built up equity in your home or improved your credit score since you first took out the loan.
When considering refinancing with the same bank, it's essential to understand the eligibility criteria:
- Good credit history
- Stable income
- Minimum equity in your home (usually at least 20%)
- Ability to meet the bank's serviceability criteria
Your current bank may have specific offers or packages for existing customers. It's worth discussing with them or consulting a mortgage broker like Esteb and Co, who have access to 83+ lenders, to ensure you're getting the best deal possible.
| Criteria | Same Bank Refinancing | Switching Banks |
|---|---|---|
| Interest Rates | 6.49% - 12% | 6.49% - 12% |
| Fees | Potentially lower | Higher, due to exit fees |
| Process | Quicker, fewer steps | Lengthier, more paperwork |
| Loyalty Benefits | Yes | No |
Steps to Refinance with the Same Bank
Refinancing with your existing bank can be a straightforward process if approached correctly. Here's a step-by-step guide:
- Review Your Current Loan: Start by understanding your current loan terms, interest rate, fees, and features.
- Assess Your Financial Situation: Consider your current financial health, including income, expenses, and any changes since you took out your original loan.
- Contact Your Bank: Reach out to your bank to discuss refinancing options. Be prepared to negotiate for better terms or rates.
- Compare Offers: Even if you're leaning towards staying with your bank, compare their offer with others. Esteb and Co can provide insights from their extensive lender panel.
- Submit Your Application: Once satisfied, submit your refinancing application. Your bank will guide you through their process, which is typically more streamlined than switching banks.
- Approval and Settlement: If approved, review the new loan contract carefully before settlement. Ensure all terms and conditions meet your expectations.
Tips and Considerations
Before deciding to refinance with your current bank, consider these tips:
- Negotiate: Don’t hesitate to negotiate with your bank for better rates or reduced fees.
- Understand All Fees: Be aware of any costs associated with refinancing, such as break fees or settlement charges.
- Evaluate Current Benefits: Consider any perks or benefits of your current loan that you don’t want to lose.
- Seek Professional Advice: Consulting with a mortgage broker like Esteb and Co can provide you with a broader view of your options.
Frequently Asked Questions
- Can I refinance with the same bank if my credit score has improved?
Yes, an improved credit score can enhance your negotiating power for better rates. - Are there fees associated with refinancing with the same bank?
There may be fewer or reduced fees compared to switching banks, but it’s important to confirm with your lender. - Will my loan features change if I refinance with the same bank?
It depends on the new loan terms. Ensure you discuss and understand any changes with your lender. - How long does it take to refinance with the same bank?
The process can be quicker than switching banks, often taking a few weeks from start to finish. - Is refinancing with the same bank always the best option?
Not necessarily. It’s vital to compare offers to ensure you’re getting the best deal available. - Can a mortgage broker help with same-bank refinancing?
Yes, brokers like Esteb and Co can help assess whether your bank’s offer is competitive and explore other options if needed. - Do I need to provide new documentation when refinancing with the same bank?
Typically, yes. Updated financial documents might be required to reassess your eligibility.
Ready to Explore Your Options?
Compare options from 83+ lenders. Free, no-obligation assessment.
With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking.