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FAQ's

Have Questions? We've Got the Answers

Have Questions? We've Got the Answers in Our FAQs

What is refinancing?

Refinancing means replacing your current home loan with a new one — either with your existing lender or a different bank — to better suit your current needs and goals.

There are many reasons homeowners/investors choose to refinance, including to:

  • Reduce interest costs
  • Improve cash flow
  • Access better loan features
  • Use equity for renovations
  • Consolidate personal debts at a lower interest rate
  • Access equity to invest in another property

The right refinance strategy depends on what you’re trying to achieve.

Refinancing can be beneficial, but it’s important to look at the bigger picture. In some cases, refinancing may extend your loan term, which can mean paying more interest over time — even if the interest rate is lower.

That’s why refinancing often makes the most sense when it’s used to:

  • Access equity for renovations
  • Improve cash flow for a short-term period
  • Consolidate higher-interest personal debts
  • Access equity to start investing and build a property portfolio

A clear strategy helps ensure refinancing works for you, not against you.

Refinancing is usually straightforward and involves:

  1. Setting clear financial goals for why you want to refinance
  2. Revaluing your property (ideally keeping your loan-to-value ratio below 80% to avoid LMI)
  3. Confirming your borrowing capacity with lenders
  4. Speaking with your mortgage broker to compare options and choose the right loan before applying

Most refinances take around 2 to 6 weeks, depending on how quickly the outgoing lender is ready to settle.

Some Australian lenders offer Fast Refinance (Fast Refi) options, which can speed up the process by reducing reliance on the outgoing lender. Eligibility varies by lender.

Generally, no. Refinancing is often easier than applying for your first home loan because you already have property as security.

If you’ve been making repayments on time and your property has increased in value, you may have built up equity — which can help you qualify for a better interest rate with a new lender.

In most cases, refinancing has little to no impact on your credit score.

Lenders will run a credit check when you apply. As a general rule, if you have fewer than three credit enquiries per year and a good repayment history, refinancing shouldn’t significantly affect your credit profile.

As a rule of thumb, many borrowers aim to keep their loan-to-value ratio (LVR) below 80% to avoid paying Lenders Mortgage Insurance (LMI).

Example:
If your property is valued at $1,000,000 and your current loan balance is $650,000, borrowing up to 80% LVR would allow a total loan of $800,000.
This means you could potentially access up to $150,000 in equity, which may be used for renovations, debt consolidation, or building an investment portfolio.

Typically, there is a waiting period before you can refinance again to a different lender, which is usually 6 months. New lenders want to see your account conduct for a minimum of 6 months before they can fully assess the loan application.

At least 20% equity to avoid LMI and obtain a better interest rate.

Yes, however, there may be break costs incurred. It is highly advisable that you call the existing lender to find out the break cost first to understand if there is any financial benefit for you to refinance.

The answer is subject to your future plan in the next few years.

If you’re looking for a simple solution, low rate, low fee and will keep paying it off, fixed rate could be a good option for you.

If you’re looking for more flexibility, ability to make any additional extra repayments, ability to access the extra payment amount that you made, then keeping the loan variable is more beneficial for you as it won’t incur any break costs.

Some lenders in Australia allow full offset account OR partial offset account to fixed rate products. Speak to your broker to find out whether this option is suitable to your current situation.

A home loan pre-approval is an initial assessment provided by a lender that indicates how much money you could potentially borrow to purchase a property.

  • Budget Planning: A pre-approval gives you a clear idea of how much you can borrow, helping you focus on properties within your price range.
  • Confidence in Negotiations: Having pre-approval shows sellers and agents that you are a serious buyer with the financial capacity to make offers. It can also give you more confidence when bidding at auctions.
  • Conditional Nature: It is important to note that pre-approval is subject to certain conditions, like further verification of your financial situation and the property’s value. Knowing these conditions upfront will give you more time to prepare for and convert the loan to formal approval at ease once you find a property to purchase.

When you start thinking of buying a property, it’s the best time to speak with your broker to confirm how much you can borrow, then apply for a Pre-Approval. It will give you an advantage when making an offer on the property (the vendor knows that you are finance ready, and you understand your budget from the bank).

It’s valid for a limited time, typically around 60 to 90 days​. After 90 days, you’ll be required to provide updated documentation to renew the Pre-Approval.

Yes. If the lenders are not satisfied with the conditions, they still can decline the loan application. Want to avoid home loan decline? Keep your financial situation consistent and speak to your broker before making any offer to reconfirm the conditions from the lenders.

  1. Contact your broker to discuss current financial situation and what you are looking to achieve.
  2. Provide supporting documentation to your broker (IDs, payslips, tax returns, bank statements, etc.).
  3. Your broker will compare loan options and make recommendation.
  4. Submit Application to the Lender for assessment.
  5. Pre-Approved: this gives you an estimated borrowing limit, usually valid for 3-6 months.

Processing Time:

  • Typically takes 1-14 business days.
  • Pre-approval is conditional, meaning the property still needs to be approved.

Pre-approval helps you know your budget but isn’t a guarantee of final loan approval.

Yes, applying for multiple pre-approvals can impact your credit report. Every time you apply for a pre-approval, the lender conducts a credit inquiry, which is recorded on your credit file. Multiple inquiries within a short period can lower your credit score and may signal to lenders that you’re a higher-risk borrower.

To avoid negatively affecting your credit score:

  • Limit pre-approval applications to serious lenders you’re considering.
  • Consult a mortgage broker, who can help you apply strategically without making unnecessary multiple credit inquiries.

Once you’re pre-approved, the process usually looks like this:

  1. Start property hunting
    You’ll know your budget and can confidently search within your borrowing range.
  2. Make an offer
    When you find the right property, you can make an offer. We strongly recommend having a solicitor review the contract before signing.
    Where possible, offers should be subject to finance and building & pest inspections.
  3. Property valuation
    After your offer is accepted, the lender will arrange a valuation to confirm the property value supports the loan.
  4. Formal (unconditional) approval
    If the valuation and all conditions are satisfied, your pre-approval converts to formal approval, and the lender issues the final loan offer.
  5. Settlement
    Funds are released and ownership transfers to you.

During this period, avoid major financial changes (new debts, job changes, large purchases), as these can affect final approval.

Yes — pre-approval is generally free.

  • No upfront application fees in most cases
  • No obligation to proceed with the loan
  • Costs such as valuation or legal fees usually only apply once you move to a formal loan application

We’ll always confirm any potential costs with the lender upfront.

Yes. Self-employed borrowers may qualify for either full-doc or low-doc pre-approval, depending on their situation.
Low-doc loans usually require alternative income evidence such as:

  • BAS statements
  • Business bank statements
  • An accountant’s letter

Maximum LVR:
Most low-doc loans allow 60%–80% LVR, depending on the lender and financial strength.

Low-doc loans may have higher interest rates or fees, so choosing the right lender is key.

Pre-approval is conditional and commonly requires:

  • Proof of identity
  • Income verification
  • Acceptable credit history
  • Employment or business details
  • Evidence of deposit
  • Disclosure of existing debts
  • A suitable property (once found)

Meeting these conditions is required before formal approval is granted.

Pre-approval is a strong indication — but not a guarantee.

Final approval depends on:

  • The property valuation
  • No major changes to your financial situation
  • All pre-approval conditions being met

Once these are confirmed, the lender issues formal (unconditional) approval.

Both methods are used in Australia.

Automated (system-based) pre-approval

  • Faster turnaround
  • Stricter criteria
  • Less flexible for complex situations

Manual assessment

  • Reviewed by a credit assessor
  • More flexible
  • Better suited to self-employed or complex applications

We guide you toward the right option based on your circumstances.

Owner-occupied loans are for homes you live in and usually offer:

  • Lower interest rates
  • Smaller deposit requirements
  • More flexible features

Investment loans are for rental or growth purposes and often:

  • Have slightly higher rates
  • Require larger deposits
  • Allow interest-only options

Property can be a strong long-term investment due to:

  • Capital growth
  • Rental income
  • Tax benefits
  • Asset diversification
  • Being a tangible, physical asset

Like all investments, the right strategy matters.

Affordability depends on:

  • Income stability
  • Existing debts
  • Borrowing capacity
  • Available savings or equity
  • Ongoing and future costs
  • Ability to handle interest rate increases

A pre-approval and cash-flow assessment will give you clarity before you commit.

There’s no perfect market — the best time to buy is when:

  • You’re financially ready
  • You can comfortably service the loan
  • The purchase aligns with your long-term goals

Timing the market is less important than having the right structure.

Look for a broker who:

  • Is ASIC-licensed and accredited
  • Has experience with your loan type
  • Works with a wide range of lenders
  • Is transparent about fees and commissions
  • Explains things clearly
  • Offers support beyond settlement

A good broker doesn’t just find a loan — they help you make better decisions.