When refinancing makes sense
The best time to refinance is at the end of a fixed term — you avoid break fees, and any cash contribution from the new bank goes straight to your bottom line.
- Your fixed rate is rolling off in the next 60–90 days
- Your equity has grown past 80% LVR (better rate tier)
- Your current bank won't restructure or top up
- You want to consolidate higher-interest debt
When it usually doesn't
If you're locked in a fixed rate that's lower than today's market, break fees will often wipe out the savings. Always ask for a written break-cost quote before deciding.
Cash contributions — read the fine print
Most banks offer 0.6–0.9% of the loan as a cash contribution. They usually claw it back if you refinance away within 3–4 years, so check your existing loan first.
