Refinancing Your Home Loan: When It Makes Sense and How to Compare Brokers
Refinancing can save thousands over the life of a mortgage — but timing and broker selection matter. This guide explains when to refinance, what to compare, and how to find the right mortgage broker in Australia.
When Does Refinancing Make Sense?
Refinancing replaces your current home loan with a new one — ideally at better terms. It makes sense when:
- Interest rates have dropped significantly since you took out the loan
- Your financial situation has improved (higher income, lower debt)
- You want to switch from a variable to fixed rate (or vice versa)
- You need to access equity for renovations or investment
- Your current lender's service or fees are unsatisfactory
The Numbers: When Is It Worth It?
As a rule of thumb, refinancing becomes worthwhile when:
- The rate difference is at least 0.5% p.a.
- You plan to stay in the property for at least 2–3 more years
- Break costs (if on a fixed rate) don't wipe out the savings
- The total cost of switching (discharge fees, application fees, valuation) is recovered within 12–18 months
What a Good Mortgage Broker Does
A mortgage broker acts as an intermediary between you and lenders. A good broker will:
- Assess your financial position and borrowing capacity
- Compare products across 20–40+ lenders (not just the big four)
- Handle the application paperwork
- Negotiate terms on your behalf
- Explain all fees and charges clearly
Mortgage brokers in Australia are paid by the lender (trail commission), so their service is generally free to the borrower. However, it's important to ask about any conflicts of interest.
How to Compare Mortgage Brokers
- Panel size: How many lenders do they have access to?
- Specialisation: Do they have experience with your type of property or loan?
- Transparency: Do they disclose all commissions and fees upfront?
- Reviews and credentials: Are they a member of the MFAA or FBAA?
- Communication: Do they explain options clearly and respond promptly?
How MyMoney® Simplifies the Process
Rather than researching brokers individually, post a brief on MyMoney® describing your refinancing goals. Multiple verified mortgage brokers will respond with transparent proposals — including their approach, lender panel, and estimated savings.
This article provides general information only and does not constitute personal financial advice. Consider whether the information is appropriate for individual circumstances before acting on it. MyMoney® Marketplace is operated by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640).