Rate, fees, term and switching costs should be considered together.
Home loans & refinance
Make the whole home loan visible.
A practical Australian guide for homeowners comparing a mortgage, reviewing their current loan or considering refinance.
Model repayments, switching costs, equity and rate resilience before starting a lender or broker conversation.
RefinanceHome purchaseEquity & LVRRepayment stress test
Information reviewed 11 August 2026
A lender valuation may differ from an owner’s property estimate.
Test repayments above the entered rate instead of relying on today’s minimum.
Tools are educational and do not show approval, eligibility or borrowing capacity.
Overview
A home loan is more than a monthly repayment.
A useful comparison starts with the purpose of the loan, the amount owing, the remaining term, the rate and fees, and the features that matter to the household. Refinancing may reduce cost or improve flexibility, but it can also add switching costs, trigger a fixed-rate break cost or restart the loan over a longer term.
Ask the current lender firstA lender may offer a lower rate or a more suitable product without a full refinance. Compare any retention offer with alternatives.
Compare like with likeOwner-occupied and investment loans, fixed and variable rates, principal-and-interest and interest-only structures have different risks and costs.
Keep the remaining term visibleExtending a 20-year remaining loan back to 30 years can reduce the monthly repayment while increasing total interest.
Value useful features honestlyAn offset account, redraw or package may be valuable, but only when the benefit exceeds the associated rate or fee.
General information only: This page and its tools are educational. They are not a quote, approval, recommendation, borrowing-capacity assessment or personal financial, legal or tax advice. Rates, valuations, lender policy, fees and eligibility vary.
Interactive refinance tool
Compare the current loan with a proposed refinance.
Enter your own loan details. The tool compares estimated monthly cost, switching-cost break-even, five-year cost and remaining-term cost. It assumes rates do not change and principal-and-interest repayments are made monthly.
Current loan
Proposed loan
Include discharge, application, valuation, legal or settlement costs and any lender-quoted fixed-rate break cost where applicable. Results are estimates, not predictions.
Loan comparison
Compare features in the context of your household.
Interest rate and comparison rate
The advertised rate affects repayments. The comparison rate combines the rate with most fees using standard assumptions, but it may not include every cost or reflect how you use the loan.
Principal and interest versus interest-only
Principal-and-interest repayments reduce the balance. Interest-only repayments may be lower for a period, but the principal does not reduce and repayments can rise later.
Offset versus redraw
An offset account reduces the balance on which interest is calculated. Redraw provides access to eligible extra repayments. Fees, rate, access rules and tax treatment can differ.
Fixed, variable or split
Fixed rates provide repayment certainty for a period but may restrict extra repayments and involve break costs. Variable rates can move. A split loan combines both structures.
Loan termCompare the proposed term with the years remaining on the current loan, not automatically with a fresh 30-year period.
Extra repaymentsCheck limits, fees and whether extra payments are accessible through redraw.
Package and account feesInclude annual packages, offset-account fees and transaction account conditions.
Cashback offersTreat an incentive separately from the long-term rate, fees, product features and switching costs.
Equity & LVR tool
Estimate the property equity position.
Loan-to-value ratio (LVR) compares the proposed loan balance with the property value. A lender will normally use its own valuation, which may be different from an online estimate or the owner’s expectation.
The 80% LVR output is a common planning reference, not a universal lender threshold. Lender’s mortgage insurance, maximum LVR and acceptable purposes vary.
Repayment resilience
Stress-test the repayment above the entered rate.
As at 28 May 2026, APRA’s minimum mortgage serviceability buffer for APRA-regulated banks remained 3 percentage points above the loan rate. Lenders use broader assessment rules and may apply higher floors or buffers. This household tool is not a lender assessment.
Use this alongside income stability, living costs, dependants and other commitments. It does not estimate borrowing capacity.
Process & documents
Prepare the information before the application.
1. Clarify the goal
Purchase, refinance, rate review, equity release, renovation, investment or debt consolidation require different evidence and risk discussion.
2. Review the current position
Confirm balances, rates, remaining terms, repayments, fees, fixed periods and useful features.
3. Compare realistic options
Consider total cost, loan structure, features and policy—not only the headline rate.
4. Complete credit assessment
Income, expenses, commitments, credit conduct, property details and objectives must be assessed and verified.
5. Approval and valuation
Conditional approval may still require valuation, documents and satisfaction of lender conditions.
6. Documents and settlement
Read loan documents carefully. Refinancing also involves discharge and coordination between lenders.
Common preparation: identification, recent payslips or income evidence, home-loan and other debt statements, transaction statements, property details, living expenses and the purpose of the request. Self-employed applicants may need tax returns, financial statements and BAS. Exact requirements vary.
Interactive preparation planner
Build a more useful first-conversation checklist.
Select the goal, income profile, timing and preferred feature. The result is a preparation guide, not a product recommendation.
Do not send identity documents, bank statements or passwords through the website form. Secure document collection should only occur after the process is explained.
Risks, switching costs & hardship
Know when refinancing may not solve the problem.
Term-reset riskRestarting the debt over a longer term can reduce monthly repayments but increase total interest.
Fixed-rate break costsBreak costs can be material and depend on the lender’s calculation. Request a current written quote before relying on savings estimates.
LMI and valuation riskIf equity is limited, a new lender’s valuation or LMI cost may make switching unattractive.
Debt consolidation riskMoving unsecured debts into a mortgage can reduce the rate but place the home at risk and extend short-term debt over many years.
Application and credit enquiriesA refinance application involves credit assessment. Avoid repeated applications without first understanding likely lender fit.
If repayments are difficult: contact the current lender’s hardship team as early as possible. Refinancing may not be available or suitable. Moneysmart provides guidance on hardship variations and free support pathways.
FAQs
Frequently asked home-loan questions.
Does a lower rate always mean a cheaper loan?
No. Compare the comparison rate, upfront and ongoing fees, useful features, switching costs and the full remaining term.
Should I ask my existing lender for a better rate?
It is often a useful first step. Compare any retention offer with suitable alternatives and confirm whether features or fees change.
Can refinancing restart the loan term?
Yes. Be deliberate about the new term. A longer term can reduce the monthly repayment while increasing total interest.
Can lender’s mortgage insurance apply again?
It may apply when equity is limited or lender policy requires it. The lender’s valuation and threshold may differ from your estimate.
Is an offset account always better than redraw?
No. Compare the interest rate, account and package fees, access rules and your likely balance. Tax treatment can also matter, particularly for property that is or may become an investment, so seek tax advice.
What happens if my loan is fixed?
Ask the current lender for a break-cost quote and any discharge fees. The amount can change, so use a current written figure in the refinance comparison.
What if I am struggling with repayments?
Contact the lender’s hardship team promptly. A hardship variation may be available. Free financial counselling and legal support may also be appropriate.
Official Australian sources
Continue with regulator and government information.
These sources support the general information on this page and should be checked for updates.
Moneysmart — Switching home loansCosts, loan-term considerations, LMI and steps to compare refinancing.Moneysmart — Mortgage switching calculatorAn independent Australian Government calculator for comparing switching outcomes.Moneysmart — Choosing a home loanPrincipal and interest, interest-only, comparison rates, fees and features.Moneysmart — Using a mortgage brokerWhat brokers do, best-interests obligations and questions homeowners can ask.Moneysmart — Problems paying your mortgageHardship variations, lender contact and support options.APRA — Mortgage serviceability settings, May 2026Current regulatory information on the minimum serviceability buffer for APRA-regulated banks.ASIC — Professional Registers SearchCheck a credit representative or credit licensee and review authorisation details.
Home-loan review
Start with the essential information.
Share a high-level outline of the goal. Kinetic can contact you about the next conversation and the information required. Do not send identification, bank statements, passwords or other sensitive documents through this form.