Why this checklist matters
Refinance decisions move quickly when rates shift. A short, repeatable checklist stops you from missing documents or costs that delay approval. This guide is general information—not personal financial advice.
Before you apply
- Verify credit file has no errors via a free provider
- Estimate property value using recent comparable sales
- Calculate current LVR and target LVR after refinance
- Compare comparison rate not just headline variable rate
- Note annual package fee and offset account conditions
- Ask about discharge fee from current lender
During approval
- Compare comparison rate not just headline variable rate
- Note annual package fee and offset account conditions
- Ask about discharge fee from current lender
- Budget for valuation, legal, and registration costs
- Set a rate-lock or expiry deadline on any offer
- Confirm repayment type after refinance (P&I or IO)
After settlement
- Set a rate-lock or expiry deadline on any offer
- Confirm repayment type after refinance (P&I or IO)
- Update direct debits after settlement date
- Store settlement letter and new account numbers securely
- Review insurance coverage after loan structure changes
Quick tips
Break costs on fixed loans can materially change the economics of switching. Always obtain a formal payout figure before committing to a new lender, and factor discharge and application fees into your comparison.
Valuations drive accessible equity at refinance. If values have fallen or your loan balance is high, LMI or partial refinance may enter the picture. A realistic valuation expectation prevents surprises late in the process.
Tax treatment of loan interest depends on purpose and structure. Investment debt generally allows interest deductions where the property is rented or genuinely available for rent, but mixed-use or redraw for private spending can complicate claims.
Interest-only periods can improve short-term cashflow but do not reduce principal. Planning for the step-up when IO ends avoids payment shock and keeps your strategy aligned with long-term wealth goals.
Professional advice from a licensed broker, accountant, or financial adviser can clarify trade-offs that articles cannot personalise. Use general guides to frame questions, then validate numbers for your situation.
Australian home loan markets are shaped by prudential standards, RBA cash rate moves, and lender appetite for certain postcodes and property types. General information in this guide is not personal advice; your circumstances, goals, and risk tolerance matter before any borrowing decision.
Common mistakes
Tax treatment of loan interest depends on purpose and structure. Investment debt generally allows interest deductions where the property is rented or genuinely available for rent, but mixed-use or redraw for private spending can complicate claims.
Interest-only periods can improve short-term cashflow but do not reduce principal. Planning for the step-up when IO ends avoids payment shock and keeps your strategy aligned with long-term wealth goals.
Professional advice from a licensed broker, accountant, or financial adviser can clarify trade-offs that articles cannot personalise. Use general guides to frame questions, then validate numbers for your situation.
Break costs on fixed loans can materially change the economics of switching. Always obtain a formal payout figure before committing to a new lender, and factor discharge and application fees into your comparison.
Valuations drive accessible equity at refinance. If values have fallen or your loan balance is high, LMI or partial refinance may enter the picture. A realistic valuation expectation prevents surprises late in the process.
Tax treatment of loan interest depends on purpose and structure. Investment debt generally allows interest deductions where the property is rented or genuinely available for rent, but mixed-use or redraw for private spending can complicate claims.