Better Rate Refinancing

As a rule, 0.30% or more justifies the cost and paperwork for most Perth loans above $300,000. On a $500k loan, 0.30% saves ~$900/year, recovering typical $2,000 refinancing costs in about 26 months. Smaller gaps—0.10%-0.20%—can still work if your current lender has high fees or poor offset/redraw features and the new loan comes with better structure. Andy runs the breakeven math in the first conversation so you see the payback timeline before committing.

Yes—rates shift every few months, and lender appetite for different postcodes and LVRs changes. A rate that was sharp two years ago might now sit 0.20%-0.40% above current market. Also, your equity position may have improved (property value up, loan balance down), moving you into a lower-LVR pricing tier that wasn’t available when you first borrowed. Andy checks your current rate against live pricing; if there’s a gap, refinancing makes sense regardless of where you started.

Advertised rate is the ongoing interest rate on the loan. Comparison rate factors in upfront fees, ongoing fees, and the advertised rate, averaged over a 25-year loan term (standardised by law). Comparison rate gives you a single number to compare products, but it assumes you hold the loan for 25 years—in reality, most Perth borrowers refinance every 4-6 years, so upfront fees hit harder than the comparison rate suggests. Andy shows both figures and explains which matters more for your expected hold period.

A refinance application creates one hard inquiry on your credit file, typically dropping your score by 5-10 points temporarily. The impact reverses within 3-6 months as long as you make repayments on time. If you’ve applied for multiple loans in quick succession (car finance, credit cards, other refinances), the cumulative inquiries can lower your score more noticeably—spacing applications 3-6 months apart minimises that. Andy checks your credit position before lodging to confirm the application won’t push your score into a lower serviceability band.

Yes, but your borrowing capacity is capped by the lower valuation. If your home was worth $600k when you borrowed $480k (80% LVR) and it’s now valued at $550k, your LVR has climbed to 87%—you’ll need lenders mortgage insurance if you want to borrow more, and rate pricing may be higher in the 80%-90% LVR band. If you’re refinancing the same amount or less, most lenders still approve as long as serviceability stacks up. Andy works with lenders who accept desktop valuations (sometimes more generous than physical inspections) and knows which assess Perth metro suburbs conservatively versus optimistically.

Typical timeline is 3-5 weeks: application lodged week one, formal approval by end of week two, settlement coordinated in weeks three to five depending on solicitor and lender scheduling. If your current loan is with a major bank and the new lender is a non-major, sometimes discharge paperwork adds a few extra days—Andy flags those timing quirks upfront. Faster-than-normal refinances (2-3 weeks) happen when valuation is waived, your income docs are current, and both lenders process quickly. Slower cases (6-8 weeks) occur if you’re self-employed with complex tax structures or if the property title has an unusual encumbrance.

Asking your current lender to match a competitor’s rate—called a retention offer—sometimes works, but it’s not guaranteed. Big four banks often drop your rate by 0.10%-0.30% if you threaten to leave, but they rarely match the absolute lowest market rate because their cost of funds is higher than smaller lenders. Non-major lenders and regionals usually don’t negotiate—they price sharp from the start. Andy’s approach: get the retention offer in writing, then compare it to the best external option. If your bank’s ‘discount’ still leaves you 0.20%+ above market and doesn’t improve features (offset, redraw), moving is the smarter play.

Your old offset account closes when the loan discharges; funds transfer to your nominated account (usually within 1-2 business days). If your new loan includes an offset, you can move those funds into the new offset immediately—the interest saving resumes from day one. Redraw facilities work similarly: any extra repayments sitting in redraw get returned to you at discharge (either paid out or transferred). Make sure you withdraw redraw funds before the discharge date if you want to avoid a gap period where the money is in limbo. Andy coordinates timing so offset and redraw funds are never idle.

Yes—Andy works with lenders who assess ABN income using tax returns, BAS statements, or accountant-declared income (low-doc option). Full-doc lenders typically want two years of financials; low-doc lenders accept one year or even six months of BAS if your business is established and cash flow is strong. Rates for self-employed borrowers can sit 0.10%-0.30% higher than PAYG rates, but you’re still comparing 30+ options to find the lowest available. If your taxable income is suppressed by depreciation or business deductions, low-doc might actually get you a better rate than a full-doc application at a major bank. Details at Refinancing for Self-Employed Borrowers.

You can refinance out of a fixed loan, but break costs apply if you exit before the fixed term ends. Break cost is the lender’s economic loss: if rates have fallen since you locked in, the lender loses interest income when you leave early—they charge you that difference. Break costs range from $0 (if rates have risen since you fixed) to $20,000+ (if rates have dropped significantly and you have years left on the term). Andy calculates your exact break cost before you commit—if it’s high, sometimes waiting until the fixed term expires is smarter. If it’s low or zero, refinancing now captures the saving immediately. See Fixed Rate Expiry Refinancing for the full walkthrough.

Every 12-18 months minimum, and immediately after any RBA rate-cycle shift. Lender pricing changes quarterly or faster depending on funding costs and competitive pressure—what was a good rate 18 months ago can slip behind by 0.30%-0.50% without you noticing. Andy’s long-term clients typically call once a year for a rate check; it takes 10 minutes and either confirms you’re still sharp or flags a refinancing opportunity before the gap widens further. If you’re coming off a fixed period, review 90 days before expiry so rate-lock timing is clean.

Yes—cash-out refinancing and better-rate refinancing often combine in one application. If you’ve built equity and want to access some (for renovations, investment deposit, debt consolidation), Andy structures the new loan at a higher balance but still targets the lowest available rate for that LVR band. The interest saving on the existing balance can partially offset the extra interest on the additional borrowed amount, so your net repayment increase is smaller than you’d expect. That said, borrowing more always raises repayments—Andy walks the numbers so you see exactly what the trade-off costs. Related: Cash-Out & Equity Release Refinancing.