Refinancing Your Home Loan in Australia: 9 Steps
Refinancing your home loan can be one of the smartest financial moves you make – but it’s important to get the process right. Whether you’re chasing a lower interest rate, unlocking equity for renovations, or simply looking for a lender that treats you better, understanding the refinancing journey will give you the best chance of success.
At Xplore, we work with homeowners across Brisbane and beyond to make refinancing simple, strategic, and stress-free. Here’s your complete guide.
Step 1: Understanding Why You’re Refinancing
Before diving into the paperwork, it’s important to get clear on your goal. Are you looking to reduce your repayments? Access cash for a major purchase? Switch to a loan with better features like an offset account? Understanding your motivation helps determine whether refinancing is the right move and what kind of loan will suit you best. For example, in Brisbane’s rising property market, many homeowners are choosing to refinance to unlock better rates or consolidate debt – but no two situations are the same.
Step 2: Assessing Your Current Loan and Home Equity
The next step is reviewing where you stand today. Start by looking at your current loan’s interest rate, fees, and features. Has your lender passed on recent rate cuts? Are you stuck paying for loan features you don’t use? It’s also crucial to check your home equity. In simple terms, home equity is the difference between your property’s market value and the remaining balance on your mortgage.
Generally, if you have at least 20% equity, you’ll be in a stronger position to refinance without paying Lenders Mortgage Insurance (LMI). Brisbane and the rest of Australia’s steady property growth over recent years means many homeowners have built up more equity than they realise – an opportunity worth exploring.
Step 3: Checking Your Credit Health
A strong credit score can open doors to more lenders and sharper rates. Before applying to refinance, it’s a smart move to order a copy of your credit report and ensure everything is accurate. Missed repayments, old defaults, or incorrect listings can hold you back. If you find any errors, get them corrected early. Having clean credit, combined with solid home equity, places you in an ideal position to negotiate.
Step 4: Researching and Comparing New Loan Options
With your goals and financial position clear, it’s time to shop around. Not all loans are created equal, and the Australian lending market is more competitive than ever. Some lenders offer cashback deals, discounted rates for owner-occupiers, or extra flexibility for self-employed borrowers. It’s important to look beyond just the advertised interest rate – annual fees, redraw facilities, offset accounts, and flexibility all matter. In busy cities like Brisbane, where lifestyle factors and future plans often change quickly, flexibility can sometimes outweigh a minor rate discount. At XploreFS, we help clients cut through the noise and find the loan that genuinely fits their future, not just the one that looks good on paper.
Step 5: Calculating the True Cost of Refinancing
Refinancing isn’t free – and understanding the costs involved is crucial. You might encounter discharge fees from your current lender, application fees with the new lender, government charges for mortgage registration, and, if you have less than 20% equity, potentially LMI again. However, if refinancing saves you thousands in interest or helps you pay off your loan years earlier, the upfront costs often pay for themselves. A good broker will walk you through these numbers so you can make a fully informed decision without any surprises.
Step 6: Preparing Your Documents
To move forward smoothly, you’ll need to provide documentation. This typically includes proof of income (such as payslips or tax returns), identification, current loan statements, and evidence of assets and liabilities. Being organised from the start can shave days (even weeks) off the approval process. For Brisbane borrowers especially, where the property market moves fast, efficiency can make a real difference in securing the best terms.
Step 7: Submitting Your Application and Property Valuation
Once your paperwork is ready, it’s time to submit your application. Your new lender will likely order a property valuation to confirm the current market value of your home. Valuation results can impact your loan-to-value ratio (LVR) and determine if you qualify for the best possible rate. Working with a broker like XploreFS means you’ll have guidance throughout the valuation process – and strategies ready if the valuation comes in lower or higher than expected.
Step 8: Receiving Approval and Moving to Settlement
After valuation and credit checks, if all goes well, you’ll receive formal approval. From here, your new lender will coordinate with your current lender to discharge the old loan and establish the new one. This phase is called settlement. You don’t need to lift a finger – your broker and the lenders handle the behind-the-scenes logistics. It’s a good idea to review your loan contract carefully before signing to ensure everything matches what you agreed to.
Step 9: Post-Settlement Setup and Ongoing Management
Once settlement is complete, it’s important to set up your direct debits, understand your repayment schedule, and familiarise yourself with any new features of your loan. It’s also smart to schedule regular reviews every year or two to ensure your loan remains competitive. Markets like Brisbane’s are dynamic – the best loan today might not be the best in two years’ time. At XploreFS, we proactively help our clients with repricing requests and refinancing again if better opportunities arise.
As a nurse, you’ve likely helped thousands of people feel safe, seen, and supported. When it comes time to secure your own home, you deserve that same care and consideration. Whether you’re a new graduate or a seasoned practitioner, the right strategy could get you into a home sooner – and save you thousands in the process.
If you’re curious whether you qualify for low deposit options or LMI waivers, get in touch. We’ll walk you through it, no obligation.
Frequently Asked Questions About Nurse Home Loans
How long does refinancing usually take from start to finish?
Refinancing typically takes around four to six weeks from the initial application to settlement, but the exact timeframe can vary depending on your situation and your lender’s processing speed. Having your documents ready and working with an experienced broker can speed things up significantly.
Can I refinance if my financial situation has changed since I took out my original loan?
Yes, you can still refinance, but lenders will reassess your application based on your current circumstances. If your income has dropped, expenses have increased, or your credit score has been impacted, it may limit your options – but a good broker can still help you navigate the best available pathways.
Is refinancing only worth it for lower interest rates?
While securing a lower rate is a common reason to refinance, it’s not the only one. Many homeowners refinance to access better loan features, consolidate debts, switch from a variable to a fixed rate (or vice versa), or release equity for renovations or investments. It’s about improving your overall financial position, not just chasing the lowest number.
Will refinancing impact my credit score?
Refinancing can have a minor short-term impact on your credit score due to the credit checks involved, but the effect is usually small and temporary. Over the long term, managing your new loan well – such as making repayments on time – can actually strengthen your credit profile.