How this lending option works
A refinance should leave you better off after switching costs and over a realistic holding period. We compare pricing, features, remaining term, structure and what you want the loan to achieve before recommending a change.
- Review rate, fees and loan features
- Calculate the real switching benefit
- Manage discharge and settlement
Work out the real refinancing benefit
We compare the new rate and fees with your current loan, including discharge, application, valuation, package and possible fixed-rate break costs. Extending the loan term can lower repayments while increasing total interest, so we show both cash-flow and long-term cost effects.
Accessing equity for another purpose
A refinance or loan increase may release equity for renovations, an investment deposit, personal expenditure or a documented business purpose. The lender will assess the property value, purpose, amount, servicing and supporting evidence. Separate loan splits can make the use of funds easier to track, but tax treatment should be confirmed with your accountant.
Debt consolidation needs a repayment plan
Rolling credit cards, personal loans or car debt into a home loan may reduce the monthly repayment, but it converts shorter-term debt into debt secured against your home. If repaid over a much longer term, the total interest can increase even at a lower rate.
- Compare total cost and the proposed repayment period
- Consider reducing or closing repaid credit limits
- Keep consolidated debt in a separate split where useful
- Do not treat consolidation as a substitute for hardship assistance
Common questions
When is refinancing worthwhile?
It may be worthwhile when the expected saving or improved structure exceeds the switching costs and the new loan suits your plans. The break-even period and remaining loan term matter.
Can I refinance and release cash at the same time?
Potentially. The lender needs an acceptable purpose, sufficient equity and evidence that you can service the increased debt. Documentation requirements vary with the purpose and amount.
Is debt consolidation always cheaper?
No. A lower interest rate can still produce a higher total cost if the debt is repaid over a longer period or further debt is accumulated. Your home may also become security for debt that was previously unsecured.
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