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Award Winning Lending Specialist Since 1986

Refinance Your Home Loan with Greater Clarity and Control

A better home loan should improve more than your interest rate

Refinancing means replacing your current home loan with a new loan.

A properly structured refinance may help you:

Refinancing is not automatically beneficial. The right decision depends on:

Mortgage House helps you compare the complete financial position—not merely the advertised rate.

Start with a Mortgage House Refinance Health Check

Before recommending a refinance, we help you examine:

We then compare the expected financial benefit against the complete cost of switching.

Could You Be Paying More Interest Than Necessary?

A small difference in your home-loan interest rate can create a substantial difference over a long loan term. Home-loan interest is generally calculated on the outstanding balance. When the interest rate is higher, a larger portion of each repayment may be absorbed by interest instead of reducing the amount you owe.

This may result in:

The relevant question is not simply: “Can I obtain a lower advertised rate?”

The better question is: “After all costs, features, risks and loan-term effects are considered, will the proposed refinance improve my financial position?”

Mortgage House can help you model that question before you proceed.

Our Loans

Current Mortgage House Refinance Rates

Seven Powerful Reasons Customers Consider Refinancing

1. Replace an uncompetitive home-loan rate

A lower rate may reduce your required repayments or allow more of each repayment to reduce the principal balance. The benefit should be calculated after considering:

A lower rate is only valuable where the benefit exceeds the cost and risk of changing loans.

2. Build a practical offset-account strategy

3. Consolidate selected higher-interest debts

Eligible personal loans, credit-card balances or car loans may be consolidated into a home loan carrying a lower interest rate.

However, a lower interest rate does not automatically mean a lower total cost. If a short-term debt is moved into a 25-year or 30-year home loan and only minimum repayments are made, the customer may pay interest on that debt for much longer.

A responsible debt-consolidation refinance should include:

4. Restructure fixed, variable or split lending

A borrower may want:

The appropriate structure depends on:

5. Improve monthly cash-flow management

A refinance may reduce required repayments by obtaining a lower interest rate or changing the remaining loan term. Extending the loan term can reduce the required monthly repayment.

However, extending the term may also increase the total interest payable over the life of the loan. Mortgage House can show you:

6. Pay the home loan off sooner

Customers who refinance to a lower rate and continue making their previous repayment amount may reduce the principal balance faster. Depending on the product terms, customers may also reduce their effective loan term through:

Actual outcomes depend on the loan balance, interest rate, fees, repayment behaviour and applicable product conditions.

7. Prepare for a future property strategy

Once expensive debts are controlled, emergency liquidity is established and home-loan repayments are sustainable, some customers may consider a future investment-property strategy. Refinancing does not itself create wealth. It also does not guarantee future borrowing capacity or investment returns.

Before considering another property, customers should assess:

Mortgage House can assess available lending options. Customers should obtain independent taxation, financial and legal advice where appropriate.

Understanding Different Income Models

Potential Benefits

Potential Disadvantages

  1. Upfront switching costs: These may include –
    • Discharge fees
    • Application fees
    • Establishment fees
    • Valuation fees
    • Legal fees
    • Settlement costs
    • Title-registration fees
    • Government charges
  2. Fixed-rate break costs: A borrower leaving a fixed-rate loan early may incur a break cost. This amount can be material. Obtain an accurate payout figure before proceeding.
  3. A longer debt period: Resetting the loan to a new 30-year or 40-year term may reduce required repayments but increase total interest.
  4. Loss of useful existing features: Your current loan may contain favourable features, pricing or access arrangements that are not available under the proposed loan.
  5. New eligibility and verification requirements: Refinancing generally requires –
    • A new credit application
    • Income verification
    • Expense verification
    • Liability verification
    • Identity verification
    • A property valuation
    • A credit enquiry
    • A complete credit assessment
  6. Lenders mortgage insurance: Where the new loan-to-value ratio is high, lenders mortgage insurance or another risk-related fee may apply. Any lenders mortgage insurance paid on the previous loan is generally not transferred to the new loan.
  7. Debt consolidation may place the home at greater risk: Unsecured debts may become part of a loan secured against the home. Failure to meet the new loan obligations may place the secured property at risk.
  8. Tax or investment consequences: Refinancing investment debt, mixed-purpose debt or equity-release debt may affect tax deductibility and loan-purpose tracing. Obtain qualified taxation advice before restructuring these debts.

Why High-Interest Consumer Debt Can Hold Customers Back

Credit cards, personal loans and car loans may carry materially higher interest rates than a home loan. High-interest debt can affect customers in several ways.

How to Use a 100% Offset Account Effectively

A 100% offset account is a transaction or savings account linked to an eligible home loan. The account balance is offset against the eligible loan balance when interest is calculated.

Offset-account example

Home-loan balance: $600,000
Eligible offset-account balance: $50,000
Balance used to calculate interest: $550,000

This does not reduce the legal home-loan balance by $50,000. It reduces the balance used to calculate interest while the money remains in the eligible offset account.

A salary-to-offset operating model

Subject to the applicable product terms, a customer may choose to have salary and other eligible regular household income credited directly into the offset account.

The customer may then:

  1. Direct eligible salary and regular income into the offset account
  2. Retain emergency savings in the offset account
  3. Pay ordinary bills and living expenses from the offset account
  4. Maintain a controlled household budget
  5. Keep the average daily offset balance as high as reasonably possible
  6. Maintain scheduled home-loan repayments
  7. Avoid unnecessary transfers into accounts that do not offset home-loan interest
  8. Review the offset benefit against any annual or package fee
  9. Retain sufficient liquidity for foreseeable expenses.

Because home-loan interest is commonly calculated daily, maintaining money in the offset account earlier and for longer may increase the interest-saving effect.

What does “credit 100% of income into the offset account” mean?

It means directing eligible regular household income into the offset account as the household’s primary cash-management account. It does not mean that the customer cannot spend money. It does not mean that every dollar must remain in the account permanently.

The strategy is designed to keep available funds offsetting home-loan interest for as long as reasonably possible before those funds are needed for normal expenditure. The customer must still retain control of:

  • Everyday living expenses
  • Scheduled direct debits
  • Emergency funds
  • Taxation obligations
  • Business cash-flow requirements
  • Trust or client-money separation
  • Insurance costs
  • Annual bills
  • Account-specific limitations

Business, trust, company or client funds must not be mixed with personal funds unless this is legally and operationally appropriate.

Offset-account limitations

An offset account may not provide sufficient value where:

  • The average balance is very low
  • The loan charges a higher interest rate for offset access
  • The annual or package fee exceeds the likely saving
  • Only part of the account balance is offset
  • The offset applies to only one portion of a split loan
  • The product terms restrict eligibility
  • The customer repeatedly withdraws all available funds
  • The customer does not require the feature

Mortgage House will explain whether the relevant product provides a full or partial offset and which loan account or split the offset applies to.

Our Objective

Put Customers in a Stronger Position After Refinancing

A refinance should not be treated as successful merely because the previous lender has been paid out. The intended outcome is a clearer, more sustainable and better-controlled lending position.

Where relevant, the proposed refinance should seek to improve one or more measurable outcomes:

  • Lower estimated total interest
  • Lower required repayments
  • A shorter effective repayment period
  • A more appropriate loan structure
  • Reduced high-interest debt
  • Higher average offset balances
  • Improved emergency liquidity
  • Fewer unnecessary credit limits
  • Clearer repayment targets
  • Better visibility of household cash flow
  • Greater resilience to interest-rate changes
  • Access to genuinely useful loan features
  • An identified break-even date for switching costs
  • A scheduled annual home-loan review.

Your Post-Refinance Action Plan

During the first 30 days

Customers should consider:

During the first 90 days

Customers should consider:

Every 12 months

Customers should consider:

Complete This 45-Point Check

Before You Refinance with Any Lender

Before accepting a refinance offer from Commonwealth Bank, ANZ, Westpac, NAB, Macquarie Bank or another Australian lender, connect with Mortgage House for a complete offer review. The same review discipline should be applied when comparing offers from other lenders, banks, mutual banks, credit unions, non-bank lenders and digital-lending brands.

  • Bankwest
  • Ubank
  • Unloan
  • ING
  • Suncorp Bank
  • Bendigo Bank
  • Adelaide Bank
  • Bank of Queensland
  • AMP Bank
  • Bank Australia
  • Great Southern Bank
  • Heritage Bank
  • People First Bank
  • Beyond Bank
  • IMB Bank
  • Newcastle Permanent
  • Greater Bank
  • Auswide Bank
  • P&N Bank
  • Teachers Mutual Bank
  • UniBank
  • Firefighters Mutual Bank
  • Health Professionals Bank
  • Police Bank
  • Defence Bank
  • Australian Military Bank
  • RACQ Bank
  • Community First Bank
  • G&C Mutual Bank
  • Credit Union SA
  • Bank First
  • Regional Australia Bank
  • Summerland Bank
  • Gateway Bank
  • Horizon Bank
  • Unity Bank
  • Qudos Bank
  • Arab Bank Australia
  • La Trobe Financial
  • Pepper Money
  • Liberty Financial
  • Other Australian credit providers

Lender ownership structures, product availability, product names and eligibility requirements may change.

  1. What is the actual interest rate for my circumstances?
  2. What is the comparison rate?
  3. Is the advertised rate available for my loan amount?
  4. Is the advertised rate available at my loan-to-value ratio?
  5. Is the rate introductory?
  6. Is the rate discretionary?
  7. Is the rate conditional?
  8. When does any introductory period end?
  9. What rate applies after the introductory period?
  10. Can the lender change the discount or margin?
  11. Does the rate differ for owner-occupiers and investors?
  12. Does the rate differ for principal-and-interest and interest-only repayments?
  13. Is there a separate rate for each loan split?
  1. What is the remaining term on my current loan?
  2. What term is proposed for the new loan?
  3. Does the refinance restart the loan over a longer period?
  4. What will the required monthly repayment be?
  5. What would the repayment be if interest rates increased?
  6. What is the estimated total interest under the current loan?
  7. What is the estimated total interest under the proposed loan?
  8. Can I retain my current repayment amount and reduce principal faster?
  9. Are additional repayments permitted?
  10. Do fixed-rate additional-repayment limits apply?
  • Will the refinance leave me better off after all relevant costs?
  • Am I converting unsecured debt into debt secured by my home?
  • Have I established a repayment plan for any consolidated debt?
  • Could the refinance affect tax deductibility or loan-purpose tracing?
  • Have I received a personalised written quote?
  • Have I reviewed the applicable Target Market Determination?
  • Have I reviewed the loan contract?
  • Have I reviewed the fee schedule?
  • Have I reviewed all required disclosures?
  • The lender
  • The credit provider
  • The product issuer
  • The Australian Credit Licence holder
  • The applicable product documentation
  • The current product terms.
  1. What discharge fee applies to my existing loan?
  2. Is there a fixed-rate break cost?
  3. Is there an application fee?
  4. Is there an establishment fee?
  5. Is a valuation fee payable?
  6. Are legal or settlement fees payable?
  7. Are title-registration or government charges payable?
  8. Will lenders mortgage insurance or another risk fee apply?
  9. Is there an annual, package or membership fee?
  10. What is the total estimated cost of switching?
  11. How many months will it take to recover the switching cost?
  1. Is the offset account a genuine 100% offset?
  2. Which loan split does the offset account cover?
  3. Are multiple offset accounts permitted?
  4. Does offset access increase the interest rate or fees?
  5. What redraw restrictions apply?
  6. Is redraw access subject to the lender’s contractual discretion?
  7. Can the loan be split between fixed and variable portions?
  8. Can repayments be made weekly or fortnightly?
  9. Are repayment holidays available?
  10. What conditions and interest consequences apply to repayment holidays?
  11. Are digital banking, statements and transaction controls suitable for my needs?

How Mortgage House Makes Refinancing Clearer

Complete discovery

We establish your:

  • Objectives
  • Existing loan position
  • Income
  • Expenses
  • Liabilities
  • Property information
  • Relevant future plans

Current-loan analysis

We review your existing:

  • Interest rate
  • Comparison rate where available
  • Remaining loan term
  • Repayment amount
  • Fees
  • Loan features
  • Fixed-rate expiry date
  • Likely exit costs.

Product and policy assessment

We identify available Mortgage House options that may suit your circumstances, subject to:

  • Mortgage House lending criteria
  • Verification requirements
  • Credit assessment
  • Product eligibility requirements
  • The applicable Target Market Determination

Cost-benefit modelling

We compare:

  • Current and proposed repayments
  • Current and proposed loan terms
  • Switching costs
  • Estimated break-even time
  • Estimated interest over the selected term
  • The effect of retaining the existing repayment amount
  • The effect of maintaining an offset balance
  • The effect of consolidating selected debts
  • Repayment sensitivity to higher interest rates

Responsible credit assessment

Any application is subject to:

  • Applicable credit-assessment requirements
  • Income verification
  • Expense verification
  • Liability verification
  • Responsible-lending requirements
  • Identity verification
  • Property verification
  • Mortgage House approval criteria

Application and documentation

We explain the required information and help customers progress through:

  • Application
  • Document collection
  • Verification
  • Valuation
  • Credit assessment
  • Loan documentation
  • Settlement preparation

Settlement coordination

We coordinate the refinance process and keep customers informed of:

  • Material requirements
  • Outstanding actions
  • Approvals
  • Documents
  • Settlement dependencies
  • Next logical steps

Post-settlement review

We help customers confirm:

  • The new account has been established
  • The intended loan structure has been applied
  • The offset account is linked where applicable
  • Repayments are operating
  • Salary credits and direct debits are functioning
  • Future reviews are scheduled

Documents Commonly Required for Refinancing

Requirements vary according to the borrower, product and application. Customers may be asked to provide:

Providing complete and accurate information may reduce avoidable delays. Do not upload altered, incomplete, misleading or illegible documents.

Five Questions to Prepare Before Speaking with Mortgage House

  • What is your current home-loan balance?
  • What is your current interest rate?
  • When does any fixed-rate period expire?
  • What is your estimated property value?
  • What outcome matters most to you?

Your main objective may be:

  • Lower repayments
  • Lower total interest
  • Improved loan features
  • Access to an offset account
  • Debt consolidation
  • Equity access
  • A shorter loan term
  • A different fixed and variable structure
  • Preparation for a future property strategy

Also be prepared to confirm whether you are:

  • PAYG
  • Self-employed
  • An investor
  • Receiving rental income
  • Receiving income from multiple sources
FAQs

Frequently Asked Questions

It can. A new lender may offer a new loan term of up to 25 or 30 years. Extending the term may reduce the required repayment but may increase the total interest paid over time. Ask for calculations based on:

  • Your current remaining term
  • The proposed new term
  • A shorter term
  • A repayment amount that remains affordable.

Potential costs may include:

  • Discharge fees
  • Fixed-rate break costs
  • Application fees
  • Establishment fees
  • Valuation fees
  • Legal fees
  • Settlement fees
  • Title-registration fees
  • Government charges
  • Annual or package fees and
  • Lenders mortgage insurance or other risk-related charges where applicable

The correct comparison is the expected benefit after all relevant costs.

The break-even period is the approximate time required for expected savings to recover the cost of refinancing.

For example:

  • Estimated switching costs: $2,400
  • Estimated monthly saving: $200
  • Simple break-even period: approximately 12 months

This simplified calculation may not account for every variable. A complete assessment should also consider:

  • The loan term
  • Interest-rate changes
  • Account fees
  • Offset balances
  • Additional repayments
  • Changes in customer behaviour

No.

The interest rate may be lower, but the total interest may increase where the debt is repaid over a much longer period. A suitable consolidation should include:

  • A defined repayment strategy
  • Clear repayment targets
  • Appropriate controls over existing credit limits
  • Monitoring after settlement.

No.

Its value depends on:

  • The average balance held in the account
  • The interest rate
  • Annual or package fees
  • Whether the offset is full or partial
  • Which loan split the offset applies to
  • The customer’s cash-management behaviour

A customer with a consistently low balance may receive less benefit than the cost of the feature.

No.

An offset account is a separate account linked to an eligible loan. Redraw generally involves accessing additional repayments previously made directly into the home loan. Access rights, tax treatment and product conditions may differ. Customers with investment or mixed-purpose loans should obtain appropriate taxation advice.

Potentially.

A break cost may apply where the fixed-rate period has not expired. Obtain a current payout figure before deciding.

Potentially.

A customer may pay the loan off faster through:

  • A lower interest rate
  • A shorter term
  • Maintaining the previous repayment amount
  • Additional repayments
  • Lump-sum repayments
  • More frequent repayments or
  • Disciplined offset-account use

Actual outcomes depend on the loan balance, rate, fees, product conditions and customer behaviour.

Yes, subject to lending criteria.

Investors should examine:

  • Interest rates
  • Comparison rates
  • Cash flow
  • Loan purpose
  • Deductibility
  • Loan splits
  • Property strategy
  • Tax consequences
  • Vacancy risk
  • Maintenance costs
  • Portfolio concentration
  • Refinancing costs

Independent tax and financial advice may be appropriate.

Yes, subject to product requirements and verification.

Evidence may include:

  • Personal tax returns
  • Business tax returns
  • Notices of assessment
  • Business financial statements
  • Business Activity Statements
  • Business bank statements
  • Other acceptable income evidence.

Potentially.

Approval depends on:

  • The property value
  • Loan-to-value ratio
  • Serviceability
  • Income and expenditure
  • Credit assessment
  • The purpose of the additional funds
  • Product eligibility
  • Applicable lending criteria

Borrowing additional money increases debt and total interest and should be considered carefully.

Contact your current lender or Mortgage House as early as possible. Refinancing is not always the appropriate hardship solution. Depending on the circumstances, a customer may need:

  • A hardship variation
  • Temporary repayment assistance
  • A repayment arrangement
  • A financial counsellor
  • Another support pathway

Free financial counselling may be available through the National Debt Helpline.

View Financial Hardship Assistance

A formal credit application may result in a credit enquiry. Multiple applications within a short period may affect how prospective credit providers assess the customer. Avoid submitting multiple applications merely to test possible outcomes.

Timeframes vary according to:

  • Application completeness
  • Document quality
  • Income verification
  • Expense verification
  • Property valuation
  • Credit assessment
  • Document execution
  • The outgoing lender’s discharge process
  • Settlement availability

A completion date should not be represented as guaranteed unless that commitment is formally supported.

Not necessarily.

Compare:

  • The interest rate
  • The comparison rate
  • Total fees
  • Required repayments
  • The loan term
  • Product conditions
  • Offset arrangements
  • Redraw arrangements
  • Fixed-rate restrictions
  • Additional-repayment conditions
  • Service standards
  • The total expected cost

Compare My Options

Make an Informed Decision

Mortgage House has provided an alternative to major banks since 1986.

Our Lending Specialists can help you:

  • Review your current loan
  • Understand available Mortgage House options
  • Compare rates and costs
  • Assess useful loan features
  • Evaluate debt-consolidation options
  • Examine offset-account strategies
  • Calculate switching costs
  • Assess whether refinancing may improve your financial position.

Important Information

This page provides general information only. It does not take into account your objectives, financial situation or needs. Before acting, consider whether the information and any product are appropriate for you.

Review the applicable:

  • Interest rate
  • Comparison rate
  • Fees and charges
  • Target Market Determination
  • Loan documentation
  • Terms and conditions
  • Required disclosures

Applications are subject to:

  • Mortgage House lending criteria
  • Verification
  • Credit assessment
  • Responsible-lending requirements
  • Product eligibility
  • Approval

Fees and charges may apply.

Interest rates and product conditions may change.

Refinancing may increase total interest where the loan term is extended.

Consolidating shorter-term unsecured debts into a home loan may increase the repayment period and converts those amounts into debt secured against property.

Offset, redraw, fixed-rate and additional-repayment arrangements are subject to the applicable product terms.

Tax outcomes depend on individual circumstances.

Obtain independent taxation, financial and legal advice where appropriate.

Customers experiencing financial difficulty should seek assistance promptly.

Free financial counselling may be available through the National Debt Helpline.

Independent consumer information and calculators are available through ASIC Moneysmart.

Mortgage House
ABN 98 081 508 054
Australian Credit Licence 393283

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