How do you refinance a home loan?

At loans.com.au, we use a fast process to refinance your loan called FastTrax Refi. FastTrax Refi allows you to pay out your lender quickly. You don’t even have to contact your old lender - we do the hard work for you. You simply apply online and talk to a lending specialist, upload your documents and then your work is done! From the time you return the completed mortgage documents and Loan Agreement to us, it only takes days to switch to loans.com.au. For more information, you can download our handy guide to refinancing.

When should you refinance your home loan?

It's a good idea to review your mortgage to see if it is still suitable for your circumstances and still represents good value. Whatever your situation, refinancing your home loan can have benefits including: Saving money in the long run with a better interest rate, Consolidating multiple debts onto your cheapest interest rate, Paying off your home loan faster if you decide to change your term. With that in mind, you need to think carefully if it makes financial sense to replace your old home loan or not, so before refinancing, consider: Costs – loan application fees for new loans, mortgage discharge fees, or break costs if your home loan has a fixed rate.enders Mortgage Insurance (LMI) – If you have less than 20% equity in your home, you may have to pay Lenders Mortgage Insurance. You cannot transfer the existing LMI to the new loan, despite the fact that your previous lender is no longer at risk. Read more about when to refinance your home loan here.

What is equity and how can you use it to refinance?

The equity in your home is the difference between its market value and your remaining home loan balance. To put it simply, this is the value of what you currently own in your home. For example, the market value of your home is $350,000 and you still owe $200,000. When you subtract the loan balance from your property value, you have equity of $150,000. The best thing about building up your equity is that it can be accessed through home loan refinancing, allowing you to use your home as security and use these funds for other expenses. Refinancing can be a way to use the equity in your home to invest in home improvements, or in other real estate. However, keep in mind that increasing your loan will mean an increase in your loan repayments. For more help on understanding your equity, view this article.

What documents do you need to refinance?

You will need to supply documents to prove you can afford to repay the loan, including: PAYG Payers - last two payslips, Self employed - last two years tax returns with an ATO Notice of Assessment, Three months of bank statements, Evidence of any rental income, Six months of statements for your current home loan, Three months of statements for any loans you are consolidating (ie. credit card debt), A copy of your current Rates Notice and evidence of payment. On our end, we’ll arrange a property valuation, credit assessment and all the paperwork with your current lender. Get more information on what you need to refinance your home loan here.

Income tax

Employment income

After salary sacrifice, before tax

Other taxable income

Financial Year 2024-2025

Your taxable income

$80,000

Income tax payable

$14,778

Your income after tax

$65,212

Your marginal tax rate

30%

This means for your annual income of $80,000 you pay

No tax on income between $0 and $18,200

16c for every dollar between $18,201 and $45,000

$4,288

30c for every dollar between $45,001 and $135,000

$10,500

Income tax payable

$14,788

Calculator assumptions

Owner-occupier
Investor

Variable Home Loan

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6.04^%

discount variable p.a.***

6.08^%

comparison rate p.a.*

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Variable Investor Home Loan

The Variable Investor Home Loan will save you money on interest and fees to make it easy to buy an investment property.

6.34^%

discount variable p.a.⁺

6.38^%

comparison rate p.a.*

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Your home

We make refinancing your home easy, so you can pay off your home sooner, add value by financing your home improvements and save money for things that matter.

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Your investment

When you refinance your investment loan with us, you can pay off your investment loan sooner and save thousands.

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