Refinance Loan – Relief When Banks Say No (2026)

Refinancing your mortgage can be a savvy financial move, potentially saving you thousands of dollars, reducing your monthly repayments, or even allowing you to access additional funds. But what if you wish to refinance with the same bank? Many Australians are unaware of the possibilities and benefits of refinancing with their existing lender. Let's explore how you can navigate this option effectively in 2026.

Understanding Refinancing with the Same Bank

Refinancing involves replacing your current mortgage with a new loan, ideally under better terms or conditions. When considering refinancing with the same bank, it's important to understand that this option can be simpler than switching lenders. You may benefit from streamlined processes, reduced paperwork, and potentially lower fees. However, the key is to ensure that the new terms are competitive and align with your financial goals.

Current Rates, Requirements, and Options

As of 2026, the Australian mortgage market continues to present a variety of interest rates and refinancing options. The average variable interest rate ranges from 6.49% to 12%, depending on your credit profile and the lender's criteria. Fixed rates are slightly higher, generally ranging from 7% to 10%.

Eligibility for refinancing typically requires:

• A stable income and employment history
• A good credit score, generally above 650
• A loan-to-value ratio (LVR) of 80% or less
• Meeting the lender's serviceability criteria

When refinancing with the same bank, you may find that your existing relationship offers some leeway in these requirements, particularly if you have a strong repayment history.

Steps to Refinance with the Same Bank

Refinancing with your current lender can be straightforward if approached methodically. Here's how you can do it:

1. Review Your Current Loan: Understand your existing terms, interest rate, and any features you utilise.
2. Research the Market: Compare your current rate with the market rates. Utilise resources like Esteb and Co, which have access to over 83 lenders, to gauge competitiveness.
3. Contact Your Bank: Initiate a conversation with your bank's mortgage adviser. Inquire about available refinancing options and any special offers for existing customers.
4. Negotiate Terms: Use your research to negotiate better terms. Highlight your repayment history and any offers you have received from other lenders.
5. Submit Your Application: If satisfied, proceed with the application process. Your bank may require updated financial documents but will generally require less paperwork than a new lender.
6. Finalise the Loan: Once approved, review the new loan agreement carefully before signing. Ensure all discussed terms are accurately reflected.

Expert Tips and Considerations

When refinancing with the same bank, consider the following tips to maximise your benefits:

• Be Prepared to Walk Away: If your bank cannot offer competitive terms, be prepared to explore other lenders. Loyalty should not compromise your financial health.
• Utilise Professional Advice: Mortgage brokers, like those at Esteb and Co, can provide valuable insights and negotiation leverage due to their extensive network of lenders.
• Consider Long-Term Implications: Assess how the refinance will affect your financial goals, both short-term savings and long-term debt reduction.
• Check for Hidden Fees: Ensure there are no hidden or unexpected fees associated with the refinance process.
• Re-evaluate Regularly: The mortgage market is dynamic. Re-evaluate your mortgage terms periodically to ensure they remain competitive.

Frequently Asked Questions

1. Can I refinance with the same bank if my credit score has dropped?
While a lower credit score might affect the terms offered, your existing relationship with the bank and repayment history could work in your favour. It's worth discussing your options with your lender.

2. Will refinancing with the same bank affect my credit score?
Refinancing itself does not significantly impact your credit score. However, multiple credit inquiries can have a temporary effect. Ensure you discuss this with your lender.

3. Is it cheaper to refinance with the same bank?
Often, the fees and processing times are lower when refinancing with the same bank, but it's essential to compare the interest rates and overall loan costs.

4. How often should I consider refinancing my mortgage?
It's advisable to review your mortgage every two to three years or whenever there's a significant change in interest rates or your financial situation.

5. Can I access equity when refinancing with my current bank?
Yes, accessing equity is possible. Discuss your options with your bank to see how much equity you can utilise based on your home's current value.

6. What documents are needed to refinance with the same bank?
Typically, you'll need updated proof of income, identification, and any other documents to reflect changes since your original loan approval.

7. How long does it take to refinance with the same bank?
The process is generally quicker than switching banks, often taking a few weeks, but this can vary based on individual circumstances and bank processes.