Mortgage Broker for Refinance: Your Complete Australian Guide

Refinancing your mortgage broker for refinance could save thousands in interest or unlock equity for other purposes. Here's what you need to know.

When to Refinance

Consider refinancing when:

• Your current rate is 0.5%+ above market rates
• Your fixed rate period is ending
• You want to access equity (home renovations, investing)
• You want to consolidate debts
• Your circumstances have improved (better rates available)

Potential Savings

Costs to Consider

Refinancing has costs that affect whether it's worthwhile:

• Discharge fee: $150-400 from current lender
• Application/settlement: $0-600 for new loan
• Valuation: Often free, sometimes $200-500
• Break costs: Can be thousands if exiting a fixed rate early

Calculate total costs vs. potential savings over time to decide if refinancing makes sense.

Current Australian Home Loan Market

The Australian home loan market offers diverse options across major banks, credit unions, and non-bank lenders. Interest rates vary significantly based on your deposit size, credit history, and employment type. Fixed rates provide payment certainty, while variable rates offer flexibility and potential savings when rates drop.

Lenders assess applications using serviceability buffers (currently 3% above the loan rate) to ensure borrowers can handle rate increases. Your borrowing capacity depends on income, existing debts, living expenses, and the property type you're purchasing.

Types of Home Loans Available

Application Process Step by Step

1. Check your borrowing power - Use calculators or speak with a broker to understand your budget based on income, debts, and expenses
2. Get pre-approval - A conditional approval (valid 3-6 months) shows sellers you're a serious buyer
3. Find your property - Search within your pre-approved budget, allowing for stamp duty and other costs
4. Submit full application - Provide payslips, bank statements, ID, and property contract
5. Property valuation - Lender arranges valuation to confirm property value supports the loan
6. Formal approval - Unconditional approval means the loan is locked in
7. Settlement - Funds transfer, you get the keys, loan repayments begin

The process typically takes 2-4 weeks from application to approval, plus additional time to settlement.

Costs Beyond the Interest Rate

When comparing home loans, look beyond the headline rate:

• Comparison rate - Includes fees to show true cost (legally required for advertising)
• Application/establishment fees - $0 to $600 depending on lender
• Ongoing fees - Monthly or annual account keeping fees ($0-$400/year)
• Valuation fees - Often covered by lender, otherwise $200-$600
• Lenders Mortgage Insurance (LMI) - Required if borrowing over 80% LVR, can be $5,000-$30,000+
• Discharge fees - $150-$400 when you pay off or refinance
• Break costs - Significant fees for exiting fixed rates early

First Home Buyer Considerations

First home buyers have access to several government support programs that can significantly reduce upfront costs:

• First Home Owner Grant (FHOG) - State-based grants typically $10,000-$30,000 for new builds
• First Home Guarantee - Buy with 5% deposit without paying LMI (limited places)
• Regional First Home Buyer Guarantee - Similar scheme for regional purchases
• Family Home Guarantee - For single parents with children, 2% deposit possible
• Stamp duty concessions - Reduced or waived stamp duty in most states for first buyers

Eligibility varies by state and property type. Check your state revenue office website for current thresholds and conditions.

Refinancing and Switching Lenders

Existing homeowners should review their loan regularly. Refinancing can save thousands through:

• Lower interest rate - Even 0.5% less saves significant money over the loan term
• Better features - Offset accounts, redraw, flexible repayments
• Debt consolidation - Roll other debts into your mortgage at a lower rate
• Access equity - Use increased property value for renovations or investment

Consider refinancing costs (discharge fees, new lender fees, potentially new valuation) against potential savings. Generally, if you'll save more than the costs within 2-3 years, refinancing makes sense.

Understanding Loan Features

Modern home loans offer features that can save money and provide flexibility:

Why Compare Multiple Options

The Australian lending market is competitive, with significant variation between lenders in rates, fees, criteria, and service levels. What one lender declines, another may approve at competitive rates. This is why comparison is essential:

• Rate differences - Even 0.5% difference saves thousands over a loan term
• Fee structures - Some lenders charge high fees but lower rates, others the reverse
• Approval criteria - Each lender has different risk appetites and policies
• Processing times - Range from same-day to several weeks depending on lender
• Service quality - Support levels vary; read reviews before committing

A finance broker simplifies this by accessing multiple lenders through one application, matching your situation to appropriate options, and handling paperwork on your behalf—at no cost to you since brokers are paid by lenders.

Ready to Take the Next Step?

Finding the right finance option doesn't have to be complicated. At Esteb and Co, we help Australians compare options across 83+ lenders to find solutions that match their situation—whether that's perfect credit or a more complex history.

Our process is simple:

1. Quick online form - Tell us about your situation (2 minutes, no credit check)
2. Personalised options - We match you with suitable lenders from our panel
3. Expert guidance - Our team explains your options and handles the application
4. Ongoing support - We're here throughout the process and beyond

Whether you're ready to apply or just exploring your options, there's no obligation and no impact on your credit score to get started.