Do you charge for your mortgage broker service?

No, our mortgage broker service is completely free for clients. We are paid by the lender, so you get expert home loan advice without any cost.

Can you help me refinance my home loan?

Yes, we specialise in home loan refinancing. We’ll compare lenders, find you a better rate or features, and handle the entire process for you.

Do you work with first home buyers?

Absolutely. We help first home buyers understand their options, access government grants, and secure the right home loan for their needs.

6 reasons to refinance your home loan.

Q: How do I know if refinancing is right for me?

Refinancing can make sense if you can secure a lower interest rate, shorten your loan term, or access equity for worthwhile goals. Compare your current repayments to the potential savings (including fees and break costs) using a refinance calculator and consider your time horizon.

Q: How long does a refinance take in Australia?

Most refinances take 2 to 6 weeks, depending on the lender, documentation quality, and whether a property valuation is required.

Q: Can I refinance if I have bad credit?

Yes, it’s possible. Options may be limited and rates higher, but some specialist lenders consider borrowers with impaired credit. A broker can help assess suitable lenders and improve your approval chances.

Q: What fees are involved in refinancing?

Typical costs include discharge fees from your current lender, application fees with the new lender, government charges, and possible break costs if you exit a fixed term early. Calculate your break-even point before switching.

Q: Will refinancing affect my credit score?

A credit check is required and may cause a small, temporary dip. Over time, on-time repayments and lower overall debt can improve your score.

Q: Can I refinance to consolidate debt?

Yes. Consolidating credit cards and personal loans into your mortgage can reduce your interest rate and simplify repayments. Be mindful that spreading unsecured debts over a longer mortgage term can increase total interest paid.

Q: How much equity do I need to refinance?

Many lenders prefer at least 20% equity to avoid Lenders Mortgage Insurance (LMI). Some refinances are possible with less equity, subject to criteria and potential LMI.

Q: Is it worth refinancing for a small rate change?

Even a 0.25% reduction can save thousands over the life of a large loan. Run the numbers with a repayments calculator and factor in all switching costs.

In Australia, the six main types of home loan refinancing are rate-and-term refinance, cash-out refinance, cash-in refinance, fixed rate adjustment, split loan refinance, and debt consolidation refinance. Each option can help you save money, restructure your loan, or access equity — and the right choice depends on your goals, budget, and property value.

Article written by

Jasmine Miller

Types of Home Loan Refinancing Options in Australia

Refinancing your mortgage can help you secure a better rate, reduce your repayments, or access your home equity for other goals. At Mortgage Matrix, we make the process simple — and our Home Loan Refinance Savings Calculator and Home Loan Repayments Calculator can help you see the numbers before you commit.

Below are the six main types of home loan refinancing and how they might work for you.

1. Rate-and-Term Refinance

This is the most common type of refinance. You replace your existing mortgage with a new one that has a different interest rate and/or loan term, without increasing your loan amount.

Benefits:

Lower your monthly repayments by securing a better rate.
Shorten your loan term to pay off your mortgage faster.
Switch between fixed and variable rates to suit your strategy.

Considerations:

Extending the loan term may reduce repayments but increase total interest over time.
Shortening the loan term may increase repayments but reduce total interest paid.

💡 Tip: Use our Refinance Savings Calculator to see how a new rate or term could impact your repayments.

2. Cash-Out Refinance

A cash-out refinance lets you tap into your home’s equity by borrowing more than your current loan balance and taking the difference in cash.

Common Uses:

Home renovations and upgrades.
Debt consolidation.
Large purchases or investments.

Considerations:

Your new loan balance will be higher, which may increase repayments.
Lenders usually allow borrowing up to 80% of your property’s value.

3. Cash-In Refinance

The opposite of cash-out, a cash-in refinance involves making a lump sum payment towards your mortgage during refinancing to reduce your loan balance.

Benefits:

Lower loan-to-value (LVR) ratio, which could qualify you for better rates.
Potentially remove the need for Lenders Mortgage Insurance (LMI).
Reduce repayments or shorten your loan term.

4. Fixed Rate Adjustment

Switching from a variable rate to a fixed rate can give you repayment certainty. This process — sometimes called a loan restructure — doesn’t require a full refinance but still needs lender assessment.

Considerations:

Fixed periods usually last 1–5 years.
Breaking a fixed-rate term early can result in significant break fees.

💡 Tip: Compare your repayment options using our Home Loan Repayments Calculator before fixing your rate.

5. Split Loan Refinance

A split loan divides your mortgage into two parts: one fixed, one variable.

Benefits:

Stability from fixed repayments on one portion.
Flexibility to benefit from variable rate drops on the other portion.
Ability to balance risk and market opportunities.

6. Debt Consolidation Refinance

This option combines multiple debts — such as credit cards and personal loans — into your mortgage, creating a single repayment.

Benefits:

Simplifies your finances with one monthly payment.
Potentially lowers your interest rate compared to unsecured debts.

Considerations:

Extending unsecured debts over your mortgage term may increase the total interest paid.
Address the root cause of debt to avoid future financial strain.

Frequently Asked Questions About Refinancing

1. How do I know if refinancing is right for me?
If you can secure a lower interest rate, shorten your loan term, or access equity for worthwhile purposes, refinancing may be worth it. A good rule of thumb is to compare your current repayments to the potential savings using our Refinance Savings Calculator and consider the costs involved.

2. How long does a refinance take in Australia?
On average, refinancing takes 2 to 6 weeks, depending on the lender, your documentation, and whether a property valuation is required. At Mortgage Matrix, we streamline the process so you can switch faster.

3. Can I refinance if I have bad credit?
Yes, it’s possible, but your options may be limited and the interest rate may be higher. Some specialist lenders cater to clients with imperfect credit histories, and our brokers can help you explore these options.

4. What fees are involved in refinancing?
Common fees include discharge fees from your current lender, application fees with the new lender, and possibly government charges. If you break a fixed-rate loan early, break costs can also apply. We’ll run the numbers so you know your break-even point.

5. Will refinancing affect my credit score?
Refinancing involves a credit check, which can cause a small, temporary dip in your score. However, if you make repayments on time and reduce your debt, your score can improve over time.

6. Can I refinance to consolidate debt?
Yes — debt consolidation refinance combines multiple debts (like credit cards and personal loans) into your mortgage. This can reduce your interest rate, but be mindful that extending unsecured debts over your mortgage term may increase total interest paid.

7. How much equity do I need to refinance?
Most lenders prefer that you have at least 20% equity in your home to avoid paying Lenders Mortgage Insurance (LMI). However, refinancing with less equity is still possible in some cases.

8. Is it worth refinancing for a small rate change?
Even a 0.25% rate drop can lead to thousands in savings over the life of your loan, especially if your loan balance is large. Use our Repayments Calculator to check the potential impact.

Ready to Explore Your Refinancing Options?

At Mortgage Matrix, we’ll guide you through the best refinance strategies for your needs — whether that’s lowering your repayments, unlocking equity, or simplifying your finances.

📲 Book a Free Appointment today or try our:

Disclaimer: This information is general in nature and does not constitute financial advice. Please speak with a financial advisor before making decisions based on your individual circumstances.

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refinance options, home loan refinancing, mortgage refinance Brisbane, refinance home loan types, cash-out refinance, debt consolidation mortgage, fixed vs variable home loan, mortgage calculators

Article written by

Jasmine Miller

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