Refinancing does not have to be complicated. Here is a practical step-by-step checklist for switching home loans in NSW.
Refinancing your home loan — switching from your current lender to a new one — can save thousands per year. But it is not quite as simple as just filling in a form. Here is a practical checklist for NSW borrowers.
Step 1: Know Your Current Loan
Before comparing, know what you are working with:
- Your current interest rate (check your statement or online banking)
- Your remaining loan balance
- Your loan type (variable, fixed, split)
- Expiry date of any fixed rate period
- Any fees for leaving early (break costs for fixed loans)
- Annual or ongoing fees on your current loan
Step 2: Calculate Your Current LVR
Loan-to-value ratio = remaining balance / current property value.
If your LVR is above 80%, you may need LMI again when refinancing (unless you qualify for a waiver). If it is below 80%, you have access to the full range of products. Get an informal property estimate from a local agent or online valuation tool first.
Step 3: List Your Goals
Are you refinancing to:
- Get a lower rate?
- Access equity for renovation or investment?
- Consolidate debts?
- Switch from variable to fixed (or vice versa)?
- Add or remove a borrower?
Your goal determines the right product and lender.
Step 4: Compare Rates — But Not Just Rate
Check: interest rate, comparison rate (includes fees), offset account availability, extra repayment allowances, and discharge fees from your current lender. A rate reduction of 0.4% on a $600,000 loan saves approximately $2,400/year.
Step 5: Get a Broker Comparison
A broker compares your options across 40+ lenders in one consultation, without multiple credit enquiries. They calculate the break-even point — how long until savings outweigh switching costs — and advise on timing.
Step 6: Gather Your Documents
Most refinance applications require: recent payslips or tax returns, 3 months of bank statements, existing loan statements, photo ID, and property insurance details.
If you are self-employed, add BAS statements, business tax returns, and your accountant's contact details.
Step 7: Submit the Application
Your broker submits the application, orders a valuation if required, liaises with the lender during assessment, and manages the discharge of your old loan at settlement.
Step 8: Settlement — Old Loan Out, New Loan In
On settlement day, your new lender pays out your old lender and takes over the mortgage registration. Your new repayments begin. Most refinances settle within 4–6 weeks of application.
Timing Tips
- Avoid refinancing mid-fixed-rate-term if break costs are significant — wait until close to the expiry date
- Refinancing while your current lender is offering cashback deals can reduce net switching costs
- Some lenders offer cashback to new refinance customers — factor this into your comparison
Ready to work through this checklist with a broker? Contact Sam for a free refinance comparison.
Frequently Asked Questions
How long does refinancing take?
Typically 4–6 weeks from application to settlement, once documents are submitted. A complete and accurate application speeds the process significantly.
Can I refinance if I am self-employed?
Yes — lenders assess self-employed refinance applications on tax returns (typically 2 years) or BAS statements. A broker who specialises in self-employed lending can identify the right lender for your documentation.
Last reviewed 27 July 2026 by Sam Elvitigala, MFAA Accredited Mortgage Broker. General information only — not personal financial or credit advice.