STEP 1

Know Why You're Refinancing

Why this matters

Refinancing only works if it aligns with your goals—otherwise, you could end up worse off.

Most people refinance to:

• Lower their interest rate
• Reduce monthly repayments
• Access equity (for renovations, investing, etc.)
• Consolidate debts
• Switch loan features (e.g. fixed ↔ variable, add an offset account)

Real example

On a $500,000 loan, reducing your rate by just 1% could save you $300+ per month (depending on your loan term).

Common mistake

Focusing only on the rate and ignoring fees or extending your loan term, which can cost more long-term.

At Market Brokers, we take the time to understand your goals before recommending any refinancing strategy.

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STEP 2

Understand Your Current Loan

Why this matters

This step is often where people discover they've been on a higher rate than necessary without realising.

Take a few minutes to check:

• Your current interest rate
• Loan type (fixed, variable, or split)
• Remaining loan term
• Monthly repayments
• Features (offset account, redraw, flexibility)

Watch out for:

• Break costs (if your loan is fixed)
• Exit or discharge fees

Hot tip

A rate that felt competitive a few years ago may no longer be.

Market Brokers can review your current loan and help identify whether there may be better options available.

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STEP 3

Check Your Equity

Why this matters

Your equity determines what options are available—and whether you can avoid Lenders Mortgage Insurance (LMI).

What is equity?

It's the difference between your property's value and what you owe on your loan.

Example

• Property value: $700,000
• Loan balance: $500,000
• Equity: $200,000

Most lenders prefer at least 20% equity to access better rates and avoid LMI.

Common mistake

Relying on an estimated property value—lenders will use their own valuation.

At Market Brokers, we can help estimate your available equity and explain how it may impact your refinancing options.

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STEP 4

Review Your Financial Position

Why this matters

Even if you already have a loan, you still need to qualify for a new one.

Lenders will assess:

• Income and employment
• Living expenses
• Existing debts
• Credit history

Common mistake

Assuming refinancing is automatic—lending criteria can change over time.

A Market Brokers loan specialist can help identify any potential issues before an application is submitted.

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STEP 5

Compare Options (or Get Expert Help)

Why this matters

Small differences between loans can add up to thousands of dollars over time.

When comparing loans, Market Brokers will look at:

• Interest rate and comparison rate

• Fees (ongoing, annual, setup)

• Features (offset, redraw, flexibility)

• Loan structure (fixed vs variable)

How Market Brokers can help:

• Compare multiple lenders on your behalf

• Recommend options aligned with your goals

• Handle the application process and lender negotiations

• Provide ongoing support beyond settlement

Hot tip

The lowest rate isn't always the best loan—flexibility and features matter too.

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STEP 6

Weigh Up the Costs vs Savings

Why this matters

Refinancing isn't free—you need to make sure it benefits you.

Potential costs include:

• Discharge fees (old lender)
• Application/setup fees (new lender)
• Valuation fees
• Break costs (if fixed)

At Market Brokers, we help clients understand the true cost of refinancing and whether the potential savings justify making the switch.

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STEP 7

Apply for the New Loan

Why this matters

This is where things start moving.

You'll typically need:

• Payslips or tax returns
• Bank statements
• Loan statements
• ID documents

Your Market Brokers broker will:

• Submit your application
• Arrange a property valuation
• Manage communication with the lender
• Keep you updated throughout the process

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STEP 8

Approval & Settlement

Why this matters

This is when your new loan officially replaces your old one.

What happens:

• Your new lender pays out your existing loan
• Your old loan is closed
• Your new loan begins

Most of this is handled behind the scenes, making the process smoother than many homeowners expect.

Market Brokers coordinates the process from approval through to settlement to help ensure everything runs efficiently.

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STEP 9

Set Up Your New Loan Properly

Why this matters

How you structure your loan now can make a big difference long-term.

Consider:

• Setting up an offset account
• Switching to weekly or fortnightly repayments
• Keeping repayments the same to pay the loan off faster

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Hot tip

Even small changes here can save you years on your loan.

Market Brokers can help you structure your loan to align with both your current needs and long-term financial goals.

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STEP 10

Don't Set & Forget

Why this matters

The best loan today might not be the best in a few years.

• Review your loan every 1–2 years
• Check if your rate is still competitive
• Reassess your goals as your situation changes

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Common mistake‍

Staying loyal to a lender without reviewing your options—this can cost you thousands.

At Market Brokers, we believe refinancing should be an ongoing strategy, not a one-time event.

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Final Thought: Refinancing Is About Strategy, Not Just Rates

Refinancing isn't just about getting a lower interest rate—it's about making your loan work better for your life.

Done right, it can help you:

• Save money
• Improve cash flow
• Pay off your loan faster
• Build long-term wealth

At Market Brokers, we take a strategic approach to refinancing by focusing on your goals, circumstances, and future plans, not just the interest rate.

You don't need to figure it all out alone. Having the right guidance can make the process simpler and help ensure you're making the right move.

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Thinking About Refinancing?

If you've gone through the steps above, you should now have a clearer picture of how refinancing works and what to look out for.

The next step is simply understanding how your current loan stacks up against what's available today. Even small improvements in rate, loan structure, or features can make a meaningful difference over time.

At Market Brokers, we offer complimentary home loan reviews to help you understand your options and determine whether refinancing is likely to benefit your situation. Whether you're looking to reduce repayments, access equity, consolidate debt, or simply check that you're still on a competitive rate, we're here to help.

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Contact Market Brokers today to arrange a home loan review and see whether your current loan is still working as hard as it should be.