Refinancing your home loan can feel like a big step, especially if it’s your first time. But with repayments rising, loan features shifting, and household budgets under more pressure than ever, it could also be one of the smartest financial moves you make this year.
In 2025, around 880,000 Australian home loans are expected to roll off fixed rates, according to RBA data. Many borrowers are now facing rate jumps of up to 3-4% compared to what they were previously paying.
That’s prompted a wave of homeowners to reassess their finances, compare options, and ask if their current loan still works for them.
For first-time refinancers, the big question is: where do I start? That’s where we come in.
No matter your reason for refinancing, from saving on repayments to exploring new loan features, this guide walks you through the process with practical, beginner-friendly advice.
Is refinancing right for you?
Refinancing isn’t a one-size-fits-all decision. Here’s what typically motivates first-time refinancers in 2025:
End of a fixed-rate period: Many loans taken out in 2020-2022 are now rolling off fixed rates. You might be facing a big jump in repayments.
Cost of living pressures: With groceries, fuel and bills rising, people are reassessing where their money is going, including their mortgage.
Life changes: Maybe you’ve had a baby, changed jobs, finished a renovation, or returned from parental leave. These moments often prompt a financial rethink.
Debt consolidation: Bundling other debts (like personal loans or credit cards) into your home loan might help you manage cash flow better.
Equity opportunities: If your home’s value has gone up, you might be able to access some of that equity to renovate, invest or cover big expenses.
“A lot of recent homebuyers are pleasantly surprised by how much their property values have increased. Combined with a few years of paying down their mortgage, many are in a much stronger position than they realise, which opens some great opportunities.” - Samantha Harvey, Senior Mobile Broker, Aussie NSW
You might also be interested in: How much could you save by refinancing to a lower rate?
What first-time refinancers need to know
It’s easy to assume that refinancing is all about getting a lower interest rate. And while rates matter, they’re only part of the story.
What lenders actually look at:
Your credit score
Your income and job stability
Your equity position (LVR)
Your expenses, including dependents and liabilities
Many first-timers are surprised to learn:
You don’t always have to switch banks to refinance. Your current lender might offer you a better deal to stay.
Loan features like offset accounts or redraw can be just as important as a lower rate.
It pays to get help. Aussie Brokers know which lenders are likely to say yes, and which ones offer the flexibility you need.
The step-by-step refinancing process
Here’s how it works when you refinance your home loan for the first time:
Step 1: Assess your current loan
Understand your interest rate, mortgage repayments, and remaining loan term. Ask: is this still working for me?
Step 2: Gather your documents
You’ll typically need proof of income (like payslips), ID, current loan statements, and info on your expenses. Your broker can walk you through it.
Step 3: Get a borrowing assessment
Aussie Brokers can show you what lenders are likely to offer, and how much you might be able to borrow based on your current position.
Step 4: Compare your options
Look beyond the interest rate. Features like offset accounts, redraw, fixed vs variable options, and fee structures matter.
Step 5: Apply and settle
Once you’ve chosen a loan, your broker will help manage the application, communicate with the lender, and guide you through settlement.
You might also be interested in: What is home equity?
Avoid these common refinancing mistakes
Refinancing can be a game-changer, but only if you avoid these traps:
Chasing the lowest rate without checking fees or loan features.
Missing hidden costs: Think break fees (if exiting a fixed term), lender application fees, settlement costs or property valuation fees.
Confusing purpose types: Owner-occupier loans vs investor loans have different criteria. Make sure you’re applying for the right one.
Resetting to a new 30-year term without realising the long-term cost.
Explainer: What is a break fee?
If you’re currently on a fixed-rate loan and want to refinance early, you might be charged a "break fee." This is a cost for ending your contract before its agreed term. Your broker can help estimate this, so there are no surprises.
Choosing the right loan features for your next chapter
2025 is all about flexibility. Whether you’re renovating, expanding your family, or planning for retirement, your home loan should work with you, not against you.
Fixed vs variable vs split: A fixed loan offers certainty, a variable one gives flexibility, and a split can offer a bit of both. What suits you now?
Offset vs Redraw: Offset accounts can help reduce interest, while redraw lets you access extra repayments. Your lifestyle might suit one more than the other.
Reducing your term: You may be able to switch to a 20- or 15-year term if you want to pay down your loan faster.
“In many cases, the only way to unlock sharper rates is by refinancing. A lot of lenders offer tiered pricing based on LVRs, and homeowners with lower loan-to-value ratios can access much better deals than they think.” - Samantha Harvey, Senior Mobile Broker, Aussie NSW
What if you’re not sure you qualify?
It’s common to feel uncertain. But even if your finances aren’t in ideal shape, that doesn’t mean you’re out of options.
Credit score not ideal? A broker can help position your application in a good light.
Worried about valuation? Use comparable sales and broker guidance to understand your equity.
Income changed? Even if you’re casual, part-time or returning from a career break, some lenders are more flexible.
Low equity? You might still refinance at a higher LVR or consider alternative strategies like a co-applicant or cash-out refinance.
You might also be interested in: How to boost your borrowing power before buying your next home
FAQs for first-time refinancers in 2025
Can I refinance if I’m still in a fixed-rate term?
Yes, but you might incur break fees. A broker can help weigh it up if it’s worth it.
Will I need to pay LMI again?
If your new loan is over 80% of your home’s value, possibly. But not always. A broker can explain.
Can I refinance to fund a renovation?
Yes. If you have enough equity, this is a common reason people refinance.
Will my new loan start from 30 years again?
It can. But you can also choose a shorter term if you want to pay it off faster.
Do I need to refinance with the same bank?
Nope. You can switch lenders or stay with your current one, whatever gets you the better result.
Ready to refinance?
You don’t have to do it alone. Aussie Brokers have helped thousands of Australians refinance with confidence, and they can help you too.
Talk to an Aussie Broker about refinancing for the first time.
