burger-menu icon close-icon

A step-by-step guide to refinancing

If you've been thinking of refinancing, but don't know where to start, fret no more. Here's a comprehensive, step-by-step guide to refinancing your home loan.

image for A step-by-step guide to refinancing

How To Refinance Your Home Loan

Refinancing your home loan isn’t as daunting as it might sound. With loans.com.au, refinancing can be quick, simple, and hassle-free!

First, let’s clear up how refinancing works. When you refinance a home loan, you’re simply replacing your current loan with a new one from a different lender. Follow the steps below to make your home loan refinance a breeze.

Know why you’re refinancing

Ask yourself what you want from your home loan. Usually, people refinance their home loans to take advantage of low refinance rates, shorten mortgage terms, or consolidate debt. Understanding your goals will help you decide on the best course of action.

At loans.com.au, we offer a range of highly competitive home loans, with a wide range of features and flexibility. Because we’re a fast, entirely online lender, you waste no time switching from your current loan to a new one.

Crunch the numbers

Do the math to see if refinancing your home loan is worth it long term. Analyse your financial situation to figure out how refinancing can help you achieve your goals.

Use loans.com.au’s home loan repayment calculator to work out how different your ongoing and total repayments will be over the life of a loan.

Take note, refinancing a home loan often requires an amount of equity in your property to act as a deposit. If your equity is less than 20%, you might have to pay Lenders Mortgage Insurance (LMI).

Look at your refinancing options

Compare home loans to see which one best suit your needs. Carefully look over all the loans available to you. Take your time; don’t be afraid to ask the lender questions. Refinancing your home loan is a serious decision so ensure you’re well-informed.

Choose your home loan and speak to a specialist

Save yourself the frustration of lenders putting your call on hold indefinitely. A good home loan lender will have specialists available to speak to you whenever you need it.

At loans.com.au, we have home loan specialists with years of experience ready to help you through the process. Book an appointment or chat with us to discuss refinancing your home loan.

Apply for your new loan

Once you’ve chosen your new home loan, it’s time to begin your application. With loans.com.au, the loan application process is completely online.

Keep your home loan refinancing documents on hand to make the application process go quicker and smoother.

Prepare for a property valuation/security assessment

When refinancing your home loan, most lenders will arrange for your property to be valued even if you already had one done for your first home loan. Spruce up your home’s exterior, make needed repairs, and do some small upgrades to help boost your home’s value.

The latest property valuation may find that your home has increased or decreased in value, which can affect how much equity you have.

Loan approval

Your lender will perform a credit assessment after inspecting your documents and your property has been valued. If your credit history, credit score, and the like are satisfactory, the lender will approve your home loan refinance.

Once you’ve been approved, your lender will send a mortgage contract package which typically includes:

  • Mortgage contracts
  • Direct debit forms
  • Terms and conditions booklets
  • Discharge forms
  • Mortgage of land forms

You can handle some documents online. Sign the required contracts and forms, then return them to your new lender.


Finally, when all the requirements have been submitted and reviewed, your new lender will arrange to pay out your existing loan. From that date, you no longer need to pay your now-old lender interest, even if they take their time discharging the loan.

When the settlement is complete, you officially start repayments to your new lender. When you refinance your home loan with loans.com.au, you can conveniently manage your repayments with the Smart Money app.

Ready to refinance your loan?

Contact us or apply online today! Get in touch with us and our friendly lending specialists will be happy to discuss your loan options.

About the article

As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.

Welcome to loans.com.au _

Just in case we lose you, may I ask for your contact details....

Loading Form