Refinance Home Loan? Unlock Savings Fast (2026)

Refinancing your home loan can be a strategic financial move, but the question that often arises is whether you can achieve this with your existing bank. With interest rates fluctuating and personal circumstances evolving, understanding your options is crucial. Let's explore how refinancing with your current lender might be the solution you're seeking.

Understanding Refinancing with Your Current Lender

Refinancing involves replacing your existing mortgage with a new one, typically to secure a lower interest rate, change the loan term, or access home equity. While many consider switching banks when refinancing, staying with your current lender can sometimes offer advantages such as reduced fees and streamlined processes.

Current Market Rates and Options

As of 2026, the Australian mortgage market is experiencing moderate interest rates, with variable rates ranging from 6.49% to 8.00% and fixed rates from 6.70% to 7.50%. Banks are keen to retain customers, often offering competitive rates and incentives for refinancing with them.

When considering refinancing, it's essential to evaluate not only the interest rates but also the costs involved, such as exit fees and application fees. Lenders on the Esteb and Co's 83+ lender panel can provide tailored solutions that might be more attractive than your current bank's offerings.

Steps to Refinance with Your Current Bank

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

1. Review Your Current Loan: Assess the terms of your existing mortgage, including the interest rate and any associated fees.
2. Check Eligibility: Ensure you meet the bank's criteria for refinancing, such as credit score and income requirements.
3. Gather Documentation: Prepare necessary documents like proof of income, property valuation, and identification.
4. Negotiate with Your Bank: Contact your bank to discuss refinancing options, focusing on securing a better rate or terms.
5. Submit Your Application: Once you have agreed on terms, complete the application process with your lender.
6. Finalise the Loan: After approval, review the loan contract carefully before signing to ensure all agreed terms are included.

Tips and Considerations

When refinancing with your current bank, keep the following tips in mind:

• Understand the Costs: Be aware of any exit or application fees that may apply.
• Consider Loan Features: Evaluate whether features like offset accounts or redraw facilities are important to you.
• Negotiate: Leverage your loyalty as an existing customer to negotiate better terms.
• Stay Informed: Keep up-to-date with market trends to ensure you're getting a competitive rate.
• Consult a Broker: A mortgage broker, such as those at Esteb and Co, can provide valuable insights and access to a wide range of lenders.

Frequently Asked Questions

Can I refinance with the same bank even if I have a fixed-rate loan?

Yes, you can, but you may incur break fees for terminating a fixed-rate loan early.

Will my credit score affect my refinancing application with the same bank?

Yes, your credit score is a crucial factor in determining eligibility and interest rates.

How long does the refinancing process take?

Refinancing can take anywhere from a few weeks to a couple of months, depending on the complexity of your application.

Are there any benefits to refinancing with my current bank?

Staying with your current bank can offer lower fees and a simplified application process.

What documents do I need to refinance with the same bank?

You will generally need your current loan details, proof of income, property valuation, and identification documents.

Can I access additional funds when refinancing?

Yes, refinancing can allow you to access equity in your home for renovations or other expenses.

Is it better to refinance with a new lender?

This depends on your specific circumstances and the offers available. Comparing rates and terms from multiple lenders is advisable.

Refinancing your home loan with the same bank can be an advantageous move, offering potential savings and convenience. However, it's essential to carefully assess all options and consider professional advice, such as from Esteb and Co, to ensure you're making the best financial decision for your situation.