Compare refinance home loans for October

Keen to see if you can switch & save on home loan repayments? Mozo has comparison tools, calculators, and expert tips to help refinance your mortgage. Compare refinance home loans below.

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Last updated 5 October 2024 Important disclosures and comparison rate warning*

Refinance home loan comparisons on Mozo

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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Our experts track home loan interest rates, product changes and help you stay informed of industry trends. Read more

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Refinancing Monthly Snapshot: October 2024

The number of Australians spending half of their income on their home loan repayments has increased by 35% since 2023, according to new research from Mozo.

The nationally representative survey found that 1 in 5 (22%) mortgage holders are spending between 40-60% of their income on repayments – a significant increase from the 1 in 6 (16%) who reported being in this bracket last year.

If you’ve found yourself in this predicament, it could be a good time to consider refinancing your home loan to a lower interest rate.

We’ve listed some of the top variable refinance rates in the Mozo database below, all of which are under 6.00% p.a.

Just keep in mind that there are costs to refinance a home loan, so you’ll want to make sure the decision to switch makes good financial sense and will save you money in the long run.

You may also want to check out if any lenders are offering refinance cashback offers.

Low variable refinance rates 

If you’re simply looking to refinance your home loan to a lower interest rate, these are the lowest variable rates† in the Mozo database at the time of writing:

Low refinance rates with an offset account

If you want to refinance to a home loan with an offset account, here are the lowest home loan interest rates with an offset account (excluding first home buyer loans) at the time of writing†:

  • Homeloans360 Owner Variable Home Loan | 5.89% p.a. (5.89% p.a. comparison rate*)
  • Police Credit Union Low Rate Home Loan Special Offer | 5.89% p.a. (5.95% p.a. comparison rate*)
  • Tiimely Variable Home Loan | 5.94% p.a. (5.95% p.a. comparison rate*)
  • G&C Mutual Bank Essential Worker Home Loan | 5.95% p.a. (5.98% p.a. comparison rate*)
  • Up Home Variable Rate | 5.95% p.a. (5.95% p.a. comparison rate*)

†Lowest variable home loan rates for a $400,000 loan with principal and interest repayments and <80% LVR in the Mozo database on 1 October 2024.

Refinancing Knowledge Hub

What is refinancing your home loan?

Unhappy with your home loan? Refinancing is the process of switching from one mortgage to another, and you can do this by negotiating with your current lender or swapping to a new provider.

Some good reasons to refinance your home loan include:

  • Securing a lower interest rate.
  • Reducing monthly repayments.
  • Changing loan terms.
  • Consolidating debt.
  • Switching home loan lenders.

Ultimately, the purpose of refinancing is to save money, time, or stress – ideally, all three at once.

Why would you want to refinance your home loan?

There are several reasons to refinance your mortgage. Let’s run through a few.

Lowering your interest rate or changing terms

You can refinance simply to secure a better home loan interest rate or to change the length of your loan.

For example, you could refinance to a lower interest rate and extend your loan term to lower your mortgage repayments.

However, if you’re able to refinance and shorten the length of your home loan, you’ll pay less interest overall.

Refinancing can also be a good idea if you’re coming off a fixed rate home loan and you want to change your loan type. If this is you, you might want to compare variable rate home loans or consider a split home loan.

You may also want to refinance to gain access to home loan features you don’t currently have, such as an offset account or a redraw facility.

Cash-out refinancing

If you’ve built up considerable home equity, it’s possible to refinance your home loan to get cash out.

Your home equity is the market value of your property minus the mortgage debt you have on it. In other words, it’s how much of your property you already own.

To get cash out, you refinance your home loan and borrow from the equity you’ve built up overtime.

Note that this can increase your home loan repayments and extend your loan term.

However, it can also be a useful way to fund projects, such as using equity to buy an investment property or pay for home renovations.

Debt consolidation refinancing

Debt consolidation loans combine multiple loans you may have, such as credit card debt, personal loans and a mortgage into a single loan.

It can be a useful way to tackle outstanding debt, and may save you on paying interest across multiple loans.

However, note this can also spread debt over a longer period of time and increase your interest rate.

Mozo Top Tip

Smaller home loan lenders often have sharper rates and more innovative savings features, including quick online refinancing.

Key considerations before refinancing

Before you refinance your home loan, ask yourself some basic questions and consider the pros and cons of refinancing.

How much money could you save?

Refinancing doesn’t reduce your debt – your outstanding loan amount will remain the same when you switch.

However, comparing refinance home loans can help you see which mortgage ultimately costs you less.

For instance, swapping to a lower interest rate, gaining interest-saving features or shortening your loan term could save you on interest in the long term, even if you have some steeper payments upfront.

You can see how switching interest rates saves you money over time in the graph below. Try your own calculations using our home loan comparison calculator.

How much does it cost to refinance?

There are costs to refinance your home loan.

For example, you may have to pay fees and penalties for leaving your old home loan, such as a discharge fee and a break fee if you decide to leave a fixed rate home loan early.

You’ll often need to pay fees when taking out a new home loan as well, such as an application fee and a property valuation fee to name a few.

Can I refinance my home loan more than once?

If you’re wondering how often you can refinance your home loan, you can do it as many times as you like. But there are a few things to keep in mind before doing so.

Every time you apply to refinance, it registers as a hard inquiry on your credit report, and lodging too many hard inquiries in a short period of time makes you look desperate for credit and therefore a home loan red flag.

The process of refinancing also costs money and takes time and effort, so you’ll only want to refinance if it makes good financial sense and is worth your personal investment.

How to refinance your home loan

Refinancing follows a similar process to taking out your initial home loan – the main difference is you already have the property.

Here’s how to refinance your mortgage, step-by-step.

  • Budget and save: Get your finances in order at least three months before you refinance. Check your spending and credit history.
  • Compare home loans: Identify what you want from your new mortgage and compare home loans – you might want to look for a lower interest rate, better features and less fees.
  • Apply: Ready to switch? Get your refinance application ready to show your new lender why you’re a good bet.

What documents do you need to refinance?

Refinancing is similar to lodging your home loan application again. This means you’ll need identity documents, financial statements and your property information. 

Here’s an example of home loan documents you might need to refinance. Keep in mind if you’re swapping to a new home loan lender, it might require additional supporting documents.

Identity documents

  • Primary identity documents, such as your passport or driver’s licence.
  • Secondary identity documents, such as your Medicare card.

Financial documents

  • Income statements.
  • Tax returns.
  • Bank statements, to show genuine savings.
  • Household spending statements.
  • Liabilities and debts, such as car loans or credit cards.
  • Asset statements, such as for share portfolios.
  • Credit history.

Property documents

  • Property details.
  • Property valuation report.
  • Current home loan statement, to prove home equity.
  • Home insurance certificate, if applicable.
  • Council rates notice.

Refinancing calculators and tools

How much can you save by refinancing? It depends on the borrower and lender. Mozo has free home loan calculators that can make it easy to crunch your costs. 

Use these handy tools to calculate your borrowing power, estimate potential savings and compare refinance home loans. Get started below.

Refinancing Home Loan Calculators

Compare refinancing costs now. See more

FAQs: Refinancing your home loan

Can I refinance with my current lender?

Yes, it’s possible to refinance with your current lender. This is common when your loan-to-value ratio (LVR) lowers or you want to switch to a different home loan product.

Do I have to refinance with a new lender?

No, you do not have to switch home loan lenders to refinance your home loan, but comparing lenders is an option to consider.

For instance, if you’re dissatisfied with your current lender’s customer service, lack of features or unwillingness to negotiate interest rates, you could refinance to a lender that’s a better fit.

How long does it take to refinance a home loan?

It varies between lenders. Sometimes it can take a few days to refinance or it may take up to eight weeks. 

You can help speed up the refinancing process by preparing your finances ahead of time, assembling your documents without errors, and making sure you have a healthy credit score.

We have a dedicated guide on how long it takes to refinance a home loan if you want to learn more.

Does refinancing my home loan affect my credit score?

Yes, it’s likely your credit score will be temporarily affected when you apply to refinance.

When you apply to refinance, your new lender will conduct credit report inquiries to determine how safe you are as a borrower, which will result in a hard credit check.

If you get rejected too many times trying to refinance, it could lower your credit score and make it harder to refinance your home loan.

Thankfully, there are some strategies you can use to refinance with bad credit.

While your credit score isn’t the end all be all, it’s still a vital part of your home loan application, so you’ll want to ensure it’s in good shape before applying.

Can you refinance a home loan with negative equity?

Negative equity is when you owe more debt on your property than what it’s worth in the current market. 

Most home loan lenders have home equity requirements for refinancers, so if you have negative equity, it’s highly unlikely that you can refinance until your equity improves.

As a rule of thumb, it’s good to have a loan-to-value ratio of at least 80% to refinance (that is, at least 20% equity).

Jack Dona
Jack Dona
RG146
Money writer

Jack is RG146 Generic Knowledge certified, with a Bachelor of Communications in Creative Writing from UTS, and uses his creative flair to cut through the financial jargon and make home loans, insurance and banking interesting. His reader-first approach to creating content and his passion for financial literacy means he always looks for innovative ways to explain personal finance. Jack's research and explanations have been featured in government publications, and his work is regularly featured alongside major publications in Google's Top Stories for Insurance.

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Home loan customer reviews

Bank of Queensland Home Loan
Overall 2/10
Disappointed with Lack of Communication

Disappointed with Lack of Communication on Home Loan Interest Rates : I’ve been a home loan customer with the Bank of Queensland (BOQ) since 2015, and while I initially had no concerns, my experience over the years has left me feeling disappointed, particularly regarding the lack of transparency around interest rates. What Happened For many years, I wasn’t aware that it was my responsibility to regularly check and request updates on my home loan interest rates. This was never communicated to me, and as a result, I was unknowingly paying higher interest rates compared to other customers. I only discovered this in 2022, after reaching out to BOQ with questions about my rate, and was shocked to find that I could have been paying much less. Financial and Emotional Impact Over time, this lack of transparency cost me thousands of dollars in unnecessary interest payments. Beyond the financial impact, the emotional strain of realizing I had been overpaying for so long was incredibly stressful. I felt like I was left in the dark as a customer, and this has taken a toll. BOQ’s Response When I raised the issue with BOQ, I was offered a small goodwill gesture, which, while appreciated, didn’t fully address the stress and anxiety I experienced. I expected a more proactive approach from the bank in notifying customers about rate reviews, especially when significant savings are possible. While they have apologized, it still feels like the system is set up in a way that leaves customers uninformed unless they actively chase the information. Why I’m Sharing This I’m writing this review to raise awareness for other customers who might be in the same situation. If you’re with BOQ or any other bank, make sure to regularly review your loan terms and ask about better rates. Don’t assume your bank will notify you of available rate reductions. Key Takeaways: BOQ doesn’t automatically inform customers when better rates are available. You must actively request interest rate reviews, or you could end up overpaying. While BOQ offers customer support, I feel there is room for improvement in their communication regarding loan management. I hope my experience can help other homeowners avoid the same pitfalls. It’s important to stay proactive with your finances, especially with long-term commitments like home loans. I hope to receive an automated message acknowledging my review as others have, but my main goal is to raise awareness and help others make informed decisions.

Read full review

Disappointed with Lack of Communication on Home Loan Interest Rates : I’ve been a home loan customer with the Bank of Queensland (BOQ) since 2015, and while I initially had no concerns, my experience over the years has left me feeling disappointed, particularly regarding the lack of transparency around interest rates. What Happened For many years, I wasn’t aware that it was my responsibility to regularly check and request updates on my home loan interest rates. This was never communicated to me, and as a result, I was unknowingly paying higher interest rates compared to other customers. I only discovered this in 2022, after reaching out to BOQ with questions about my rate, and was shocked to find that I could have been paying much less. Financial and Emotional Impact Over time, this lack of transparency cost me thousands of dollars in unnecessary interest payments. Beyond the financial impact, the emotional strain of realizing I had been overpaying for so long was incredibly stressful. I felt like I was left in the dark as a customer, and this has taken a toll. BOQ’s Response When I raised the issue with BOQ, I was offered a small goodwill gesture, which, while appreciated, didn’t fully address the stress and anxiety I experienced. I expected a more proactive approach from the bank in notifying customers about rate reviews, especially when significant savings are possible. While they have apologized, it still feels like the system is set up in a way that leaves customers uninformed unless they actively chase the information. Why I’m Sharing This I’m writing this review to raise awareness for other customers who might be in the same situation. If you’re with BOQ or any other bank, make sure to regularly review your loan terms and ask about better rates. Don’t assume your bank will notify you of available rate reductions. Key Takeaways: BOQ doesn’t automatically inform customers when better rates are available. You must actively request interest rate reviews, or you could end up overpaying. While BOQ offers customer support, I feel there is room for improvement in their communication regarding loan management. I hope my experience can help other homeowners avoid the same pitfalls. It’s important to stay proactive with your finances, especially with long-term commitments like home loans. I hope to receive an automated message acknowledging my review as others have, but my main goal is to raise awareness and help others make informed decisions.

Less
Kannan, Western Australia, reviewed 17 days ago
Adelaide Bank SmartSaver Fixed
Overall 10/10
Excellent bank especially for home loans.

Excellent bank especially for home loans.

Read full review

Excellent bank especially for home loans.

Price
10/10
Features
9/10
Customer service
9/10
Convenience
7/10
Trust
10/10
Less
Ilan, Victoria, reviewed 17 days ago
Commonwealth Bank Home Loan
Overall 8/10
Good customer service in store

Big bank, so you know it's not going to close unexpectedly of anything, but also they have the power to care more or go above and beyond for its clients, but instead tend to find they are like any other bank (ie always passing on rate rises early etc). Mind you, staff at the local store are super lovely and helpful.

Read full review

Big bank, so you know it's not going to close unexpectedly of anything, but also they have the power to care more or go above and beyond for its clients, but instead tend to find they are like any other bank (ie always passing on rate rises early etc). Mind you, staff at the local store are super lovely and helpful.

Price
6/10
Features
8/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Cass, Victoria, reviewed 17 days ago

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