Refinance Checklist
Refinancing can save you thousands of dollars a year, unlock equity for renovations or investment, or simply get you out of a loan that no longer suits you. But it’s not something to jump into blind. Here’s the checklist we work through with every client considering a switch.
1. Know Why You’re Refinancing
Before comparing a single rate, get clear on your goal, because it changes the strategy:
Lower repayments — you may want the sharpest rate available, even if it means a shorter offset track record with the new lender
Access equity — for renovations, a deposit on an investment property, or debt consolidation, you’ll need a valuation and a lender comfortable with your purpose for the funds
Debt consolidation — rolling credit cards or personal loans into your home loan can lower your repayments, but extends the term those debts are paid off over, so it needs to be weighed carefully
Fix, unfix, or split — you might be refinancing purely to change your rate structure, not necessarily lender
2. Check Your Current Loan’s Exit Costs
Before you commit, get a payout figure from your current lender and check for:
Fixed rate break costs — if you’re on a fixed rate, breaking early can trigger a break fee, sometimes a substantial one, calculated on the difference between your fixed rate and current market rates
Discharge fees — most lenders charge a small administrative fee to close out a loan
Deferred establishment fees — less common now, but check your original loan contract
3. Weigh Up the New Loan’s Establishment Costs
On the other side of the ledger:
Application or valuation fees — many lenders waive these as part of refinance offers, but not
all
Lenders Mortgage Insurance (LMI) — if your loan-to-value ratio is above 80%, you may need to pay LMI again with the new lender, even if you’ve already paid it once. This is one of the biggest hidden costs in refinancing and needs to be checked early
Government fees — mortgage registration and discharge fees apply in most states
4. Get an Updated Property Valuation
Your borrowing capacity and your loan-to-value ratio both depend on what your home is worth now, not what you paid for it. A higher valuation can mean a better rate tier, access to more equity, or avoiding LMI altogether. A lower-than-expected valuation can change your whole strategy — so it pays to know this early, before you’ve committed to a particular lender.
5. Reassess Your Borrowing Capacity
Serviceability rules have generally tightened since most people took out their original loan, and your income, expenses and other debts have likely changed too. It’s worth confirming you’ll actually qualify for the new loan amount before starting the paperwork — refinancing isn’t automatic just because you already have a mortgage.
6. Compare the Whole Package, Not Just the Rate
The lowest advertised rate isn’t always the lowest-cost loan overall. Compare:
Comparison rate (which includes most fees)
Offset account availability and whether it’s a genuine 100% offset
Redraw flexibility
Annual or monthly package fees
Whether the rate is introductory and reverts after a set period
7. Time It Around Your Fixed Rate (If Applicable)
If part or all of your loan is fixed, it’s often worth timing your refinance to align with the end of the fixed term to avoid break costs — unless the savings from switching early clearly outweigh the fee.
8. Gather Your Documents Early
To keep things moving, you’ll generally need recent payslips or tax returns, your last few months of bank statements, your current loan statement, and photo ID. Having these ready before you apply speeds up approval significantly.
Let Us Run the Comparison for You
Refinancing across 60+ lenders is exactly the kind of comparison a broker is built for — we’ll check whether switching genuinely leaves you better off once every cost is accounted for, not just the headline rate.
Get Started and we’ll run a refinance review for you, at no cost.
This article is general information only and does not take into account your personal financial situation, needs or objectives. It is not personal financial or credit advice. Fees, costs and lender policies referenced are indicative and subject to change — always confirm current figures with your broker and lender before making a decision. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only. Spitfire Finance Pty Ltd ABN 70 700 362 956, ACN 700 362 956 is authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192.