If you’ve had your current home loan for a number of years, it’s likely that your needs have changed over that time. You may have a different financial situation, yet your current home loan may not have the range of flexible features and add-ons that have since become available.

If you do decide to compare home loans and you find another loan that better suits your needs, you can refinance your home loan. Refinancing involves paying out your current loan with a new one. It may shorten your loan term and reduce repayments on your loan, so you can afford to make extra mortgage repayments and own your home sooner.

Why refinance?

There are a number of reasons you may want to refinance your home loan:

  • You may be looking for a better interest rate or new features and add-ons such as flexible repayments, redraw facilities and loan splitting
  • You may be looking to use the equity in your home to renovate
  • If you’re coming to the end of a fixed rate term, that’s a good time to see if you can get a better interest rate or a more flexible home loan
  • You may be looking to consolidate debts such as a personal loan, car loan or credit card into your mortgage, so that it’s easier to manage your finances.

Refinancing your home loan may also offer potential tax benefits should you refinance to access equity in your home and use those funds to invest in property, shares or other wealth-building opportunities

Things to consider

When comparing home loans with a view to refinance, you should take into account any upfront and ongoing costs associated with exiting your current home loan and switching to the new loan. These may include a settlement fee, loan establishment fee, mortgage registration fee, loan service, and/or exit fees and charges.

You may also need Lenders’ Mortgage Insurance or Low Deposit Premium, depending on the circumstances of your home loan.

To help you compare CommBank home loans, you can view our standard home loan rates and fees.

Whether you already have a home loan with us or want to switch from another financial institution, our step-by-step refinance guide can make it easier for you.

Talk to a Home Lending Specialist about refinancing

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.