Mortgage Broker for Refinancing in Sydney
Lower your rate, release equity or restructure your loan without paying a loyalty tax to your current lender. As a mortgage broker for refinancing, we compare your existing loan against the market, cost the switch in full and only recommend moving when the numbers work.
When Refinancing Makes Sense
Lenders often price new customers more sharply than existing ones, so a loan that was competitive at settlement can drift above the market within a few years. If you have not reviewed your rate in two years or more, it is worth checking.
A fixed rate ending is a natural point to review. Your loan usually rolls onto the lender's standard variable rate, which is rarely its best rate.
Refinancing also suits a change in goals: releasing equity for a renovation or investment, adding an offset account, or moving an investment loan to interest only. As your Sydney mortgage broker, we look at the loan's structure, not just the rate.
Before switching, ask your current lender for a better rate. We can tell you what the market is offering so you know what to ask for, and sometimes staying put is the better result.
What Refinancing Can Achieve
Most refinances are driven by one of these goals:
Lower Interest Rate
A lower rate reduces repayments or, if you keep paying the same amount, shortens the loan and cuts total interest.
Release Equity
Access equity for a deposit, renovation or other purpose, kept in a separate split for clean records. See our equity release service.
Consolidate Debt
Roll credit cards, personal or car loans into the home loan at a lower rate, with one repayment instead of several.
Better Features
Add an offset account, redraw or split between fixed and variable to suit how you manage cash flow.
Restructure for Investing
Separate personal and investment debt, or move to interest only on an investment loan. See our investment property loans.
Fund a Build or Renovation
Move to a lender that can fund major works in progress payments. See our construction loans.
What It Costs to Switch
A refinance only makes sense when the savings outweigh the cost of moving. We cost every item before you decide:
Discharge Fee
Your current lender charges a fee to close the loan. Exit fees were banned on loans taken out from July 2011, but discharge fees still apply.
Fixed Rate Break Costs
Leaving a fixed rate early can trigger a break cost, which is sometimes large enough to make waiting for the fixed term to end the better option.
Government Fees
NSW Land Registry Services charges to discharge the old mortgage and register the new one.
New Loan Fees
Some lenders charge establishment, valuation or package fees. Others waive them or offer a cashback, which should be weighed against the rate.
Lenders Mortgage Insurance
LMI does not transfer. If your loan is above 80% of the property's value, you may pay it again with the new lender.
What Lenders Check When You Refinance
A new lender assesses you from scratch, using today's policy:
Serviceability
The Australian Prudential Regulation Authority (APRA) requires banks to test repayments at 3 percentage points above the actual rate. If your income has fallen or rates have risen since you borrowed, you may not pass at a new lender, even with a clean repayment history. Some lenders offer streamlined assessment when the refinance lowers your repayments.
Property Value and LVR
A new valuation sets your loan to value ratio (LVR), which drives pricing and whether LMI applies. Rising values can move you into a cheaper pricing tier.
How the Process Runs From First Call Onwards
Most refinances settle within two to four weeks of submission:
Reviewing Your Loan
We go through your current rate, balance, features, fixed terms and goals, and check what your lender would offer to keep you.
Comparing and Costing
We compare options across our panel and show the net saving after every switching cost, so you can see how long it takes to break even.
Submitting Your Application
We lodge the application, order the valuation and manage the lender's questions through to formal approval.
Coordinating the Switch
We arrange the discharge with your current lender and the settlement with the new one, so there is no gap in repayments or offset balances.
Ongoing Reviews
Once a year, we check your rate against the market so your loan does not drift again.
None of this commits you to a lender, and no application is lodged until you have chosen one.
What Our Service Costs You
Broker commission is paid by the lender that funds the loan. Any fee payable by you is set out in writing in our credit guide and credit proposal before you commit, and the first review carries no cost.
Where a refinance is priced with an advertised rate, we show the comparison rate alongside it, since the advertised figure alone leaves out fees that change what you pay.
Trade-Offs Worth Knowing
Costs and risks worth weighing before you switch:
Resetting the Term
Refinancing onto a new 30-year term lowers repayments but can add years of interest. Keep repayments at the old level to avoid this.
Consolidating Short-Term Debt
A car loan spread over 30 years can cost more in total interest, even at a lower rate. Pay consolidated debts off faster where you can.
Cashback Offers
A cashback can be outweighed by a higher rate within a year or two. Compare the full cost over the time you expect to hold the loan.
Credit File Enquiries
Each application is recorded on your credit file. Applying with several lenders at once can count against you.
Why Sydney Homeowners Refinance With Us
DIY Lending is led by Di Yin and operates as a Corporate Credit Representative of Finsure Finance & Insurance Pty Ltd, Australian Credit Licence 384704. We are a member of the Mortgage and Finance Association of Australia and the Australian Financial Complaints Authority.
We hold access to more than 40 lenders and cost every switch in full before recommending it. Where staying with your current lender is the better result, we tell you on the first call.
Our refinancing mortgage broker work keeps every decision about your own money with you.
See What Your Loan Could Save
Send us your latest loan statement, and you will get a comparison against the market, the full cost of switching and the net saving.
Call 02 8806 7258 or send your details through.
Frequently Asked Questions (FAQs)
How often should I review my home loan?
At least once a year, and whenever a fixed rate is about to end or your circumstances change. Rates offered to new customers often move faster than those on existing loans.
How long does refinancing take?
Most refinances settle within two to four weeks from submission. Valuations, discharge processing and complex income can add time.
Can I refinance while on a fixed rate?
Yes, but a break cost may apply. We ask your lender for the figure and compare it with the saving before you decide.
Will I pay lenders mortgage insurance again?
In most cases, only if the new loan is above 80% of the property's current value. LMI paid on your existing loan does not transfer to the new lender.
Can I refinance to buy an investment property?
Yes. Refinancing can release equity for a deposit, usually held in a separate split so the investment debt is kept apart for tax purposes.
Can I refinance if my income has dropped?
It depends on the lender. A new lender reassesses your income at a buffered rate, though some offer streamlined assessment when the refinance lowers your repayments.
Is it worth asking my current lender for a better rate?
Yes. Lenders often reduce rates to keep a customer. Knowing what other lenders are offering gives you a stronger position when you ask.
This page contains general information only. It does not take your objectives, financial situation or needs into account, and it is not a recommendation to enter into any credit contract. Fees, rates and lender requirements change, and the outcome depends on your circumstances and the lender assessing you. You may wish to speak with a qualified professional before acting on anything here.