True wellbeing begins at home.
Refinancing is not always the right move - but staying in an uncompetitive loan when you should refinance costs you thousands every year. Here is how to know when refinancing makes sense and when it does not.
By Jason Given · January 2026 · 5 min read
Your rate has not been reviewed in 12 to 18 months
Lenders consistently offer their best rates to new customers. If you have not had your rate reviewed in the past year to 18 months, there is a very good chance you are paying more than you need to. The difference between a loyal customer rate and a competitive new customer rate can be worth $1,800 to $4,800 per year on a $600,000 loan. Illustrative only, not a quote or an offer of credit.
Your fixed rate is expiring
When a fixed rate period ends, your loan reverts to the lender's standard variable rate - which is often not their most competitive rate. The expiry of a fixed period is the ideal time to review: you have no break costs, and you can refinance to a competitive rate at another lender or negotiate aggressively with your current one.
Your financial situation has improved
If your income has increased, your LVR has reduced (through repayments or property value growth), or your credit position has improved since you first took out the loan, you may now qualify for better rates or products than were available to you originally. Lendology assesses your current position and advises on what has changed.
You want to access equity
If your property has increased in value, you may be able to refinance to access the equity for renovations, an investment deposit, or debt consolidation. Refinancing for equity access makes sense when the purpose of the funds generates a return - financial or lifestyle - that exceeds the cost of the additional borrowing.
When refinancing does not make sense
Refinancing is not worthwhile if you are deep into a fixed rate term with significant break costs, if the rate saving is so small that you would not recoup switching costs for years, or if your loan balance is very low and the saving in dollar terms is minimal.
Lendology does the numbers honestly. We have told clients to stay with their current lender when the evidence does not support switching - we only recommend refinancing when it genuinely benefits you.
Frequently asked questions
How do I know if my rate is competitive?
Book a rate review with Lendology. We compare your current rate against the market and give you a clear picture of what is available - with no obligation to proceed.
How much could I save by refinancing?
The saving depends on your loan balance, current rate, and how much better the available rates are. Lendology calculates your specific saving, including all switching costs, before recommending any action.
Will refinancing affect my credit score?
A formal application generates a credit enquiry. We minimise this by identifying the right lender before applying rather than submitting multiple applications simultaneously.
Find out if a better rate is out there
Book a time and Steve will look at where your loan sits against the lenders we use, then talk you through your options.
15 minutes with Steve. No cost to you, the lender pays us when your loan settles. You pick a time, we call you.
Rather talk now? Call 08 8270 5138.