Refinancing can be worthwhile if you can secure a lower interest rate or better loan features. Even a small reduction in rate can save thousands over the life of a mortgage.

While the application itself can take only minutes, settlement of the new loan typically takes 2–6 weeks depending on the lender and discharge process.

There is no strict limit. Many Australian homeowners refinance every few years when interest rates change or when better loan offers become available.

Most lenders prefer borrowers to have at least 20% equity in their property when refinancing. Equity is the difference between your property’s value and the amount remaining on your mortgage. If you have less than 20% equity, refinancing may still be possible, but you may need to pay Lenders Mortgage Insurance (LMI) or accept a slightly higher interest rate.

Most lenders prefer a good credit history and stable income. However, refinancing options can still exist for borrowers with average credit depending on their equity and repayment history.

Refinancing usually involves a credit check which may cause a small temporary impact on your credit score. However, maintaining repayments on the new loan can improve your credit profile over time.

Refinancing with bad credit can be more difficult, but it is still possible in some cases. Lenders generally look at your overall financial situation, including your income, repayment history, and the amount of equity in your property. Borrowers who have built up equity or who have consistently made their mortgage repayments may still qualify for refinancing options, even if their credit score is not perfect. Comparing lenders can help identify loans that are more flexible with credit requirements.