How to Refinance Home Loan in Brisbane – And Actually Save!

Interest rates in Australia are constantly changing, and homeowners across Brisbane and Queensland are always looking for ways to secure a better deal on their mortgage. If you’re paying a higher-than-average interest rate, refinancing your home loan could save you thousands of dollars over the life of your loan.

But how does the refinancing process work, and is it the right move for you? 

This guide will walk you through the essential steps of refinancing and offer expert insights from Kelly Brothers Finance, a trusted mortgage broker team with years of industry experience.

Let’s start exploring the steps for refinancing a home loan. 

1. Understand Your Reasons for Refinancing

Before diving in, ask yourself: Why do I want to refinance? Some common reasons include:

• Getting a lower interest rate to reduce monthly repayments
• Switching from a fixed-rate loan to a variable rate loan (or vice versa)
• Accessing equity to renovate or invest in property
• Shortening your loan term to pay it off sooner
• Consolidating high-interest debts (credit cards, personal loans)

By identifying your main goal, you’ll be better positioned to compare loan products and make an informed decision.

Pro Tip: Jot down your current loan details—interest rate, loan balance, monthly repayments, and remaining term—then compare them with new offers. A loan refinance calculator helps you see potential savings and decide if refinancing is worth it.

2. Calculate Your Home Equity

Equity is the difference between your home’s market value and your outstanding debt. If your home is worth $800,000 and you owe $500,000, your equity is $300,000 (or 37.5%).

Why does this matter?

• Lenders typically prefer borrowers with at least 20% equity.
• Less than 20% equity? You may need to pay Lenders Mortgage Insurance (LMI), which can add thousands to your costs.
• More equity = better loan rates and more options.

If you want to self-check your home’s value, you can use real-time data from CoreLogic or Domain.

Pro Tip: Before applying, get a professional property valuation or check recent sales in your area to confirm your home's market value. This helps you avoid surprises and ensures you’re calculating your equity—and potential LMI costs—accurately.

3. Check Your Credit Score

Lenders assess your credit report before approving your refinance application. If you have a strong credit score (above 700), you’re more likely to secure a competitive interest rate.

Here’s what to do:

• Get a free credit report from Equifax or Experian
• Check for errors – incorrect defaults can lower your score
• Pay off outstanding credit card debts and personal loans
• Avoid making multiple loan applications in a short period

A higher credit score not only makes the approval process quicker and less stressful but also opens the door to better loan options with competitive interest rates. It shows lenders you’re a reliable borrower, which can save you thousands of dollars over the life of your loan.

4. Compare Home Loans & Lenders

Not all lenders play by the same rules, so it’s really worth taking the time to compare rates and see what each one’s offering. Some might hit you with sneaky fees, while others could surprise you with better rates or flexible features—so it pays to look closely at things like:

• Current interest rate vs. new rate
• Comparison rate (includes extra costs like fees)
• Loan fees – application fees, exit fees, valuation fees, and mortgage registration fees
• Loan features – offset accounts, redraw facility, extra repayments

Pro Tip: Save time and hassle by chatting with an experienced mortgage broker who’ll compare lenders, spot hidden fees, and find the right loan for you. It’s the easiest way to navigate refinancing without drowning in the fine print.

5. Prepare Your Financial Documents

Before you dive into the application, it’s a good idea to get your paperwork sorted—it’ll make the whole process a lot less stressful. Lenders need to see proof of your financial situation, so having these documents ready can really speed things up.

• Bank statements (usually last 3-6 months)
• Tax returns & proof of income
• Credit card statements & outstanding debt details
• Current home loan statements

Pro Tip: Gather your documents early and double-check that everything’s up to date—missing paperwork is one of the biggest reasons loan approvals get delayed. If you’re unsure what’s needed, ask your mortgage broker for a checklist to keep things simple and stress-free.

6. Submit Your Loan Application

Once you’ve chosen a favourable loan, you’ll apply through your lender or mortgage broker. Expect:

• Property valuation – The bank will assess your home’s value to determine your borrowing capacity.
• Approval process – If everything checks out, you’ll receive formal loan approval.
• Loan settlement – Your new lender will pay out your current mortgage, and you’ll start making repayments on the new loan.

Pro Tip: Some lenders charge a discharge fee when you exit your old loan. Ask about this upfront.

7. Understand the Costs of Refinancing

It’s easy to focus on the potential savings, but don’t forget that refinancing comes with its own set of costs. Knowing what fees to expect upfront can help you avoid any surprises and decide if the switch is really worth it.

• Application fees – Can range from $200-$600
• Valuation fees – Around $200-$500
• Discharge fees – Varies by lender but typically $150-$400
• LMI (if applicable) – Can be thousands of dollars if you borrow more than 80% of your home’s value

Pro Tip: Ask your mortgage broker for a full breakdown of all potential fees before you commit. This way, you’ll know the true cost and avoid wiping out your savings with surprise charges.

8. Consult with a Mortgage Broker

Before making any big financial decision, it’s worth sitting down with a mortgage broker who knows the ins and outs of refinancing, especially in markets like Brisbane. A good mortgage broker compares loan options from banks and online lenders, breaks down the real costs, and makes sure the loan suits your situation. 

They’ll also handle the paperwork and guide you on repayment types and ways to lower your loan repayments. Best of all, a broker’s service is often free, as their fee is paid by the lender, not you.

Want expert help? Reach out to Kelly Brothers Finance for a free consultation at (07) 3847 9450 or visit kellybrothersfinance.com.au.

Frequently Asked Questions (FAQs)

Is it a good idea to refinance a home loan?

Refinancing your current loan can be a smart financial decision if it lowers your monthly payments, offers a better rate home loan, or gives you access to features like flexible repayment options. However, it’s important to weigh the upfront costs and break costs to make sure the potential benefits outweigh the expenses.

How do I refinance my home loan?

Refinancing involves reviewing your original loan and applying for a new one that better suits your needs, whether through your current financial institution or online lenders. A mortgage broker can help guide you through the process, from comparing loan types to handling the paperwork.

What is the first step in refinancing?

The first step is reviewing your loan balance, interest rate, and current loan repayments to figure out if refinancing could actually save you money. From there, you can compare options based on repayment type, features, and fees to find the best deal.

What’s the downside to refinancing?

Refinancing isn’t free—it often comes with break costs, upfront costs, and fees like application, valuation, or discharge fees that can eat into your savings. If you’re not careful, you might end up extending your 30-year loan or increasing your loan balance, which could cost more in the long run.

Can I refinance my loan to buy an investment property?

Yes, refinancing your current loan can help you access equity for a deposit on an investment property or investment loan. Just keep in mind that these loans often have different conditions, and you’ll need to consider if your financial institution allows additional repayments or flexible repayment options to suit your strategy.

Will refinancing reduce my monthly payments?

It’s possible—switching to a rate home loan with a lower interest rate or a shorter loan term could reduce your monthly payments and save you money. But always factor in upfront costs and any impact on your overall loan repayments to see the full picture.

How does my repayment type affect refinancing?

Your repayment type, whether interest-only or principal and interest, impacts your future payments and overall loan cost. If you switch mortgage arrangements or adjust your repayment type during refinancing, it’s important to review how that change aligns with your long-term goals, especially if you’re juggling an investment loan or planning additional repayments.

Final Thoughts

Refinancing your home loan in 2025 could be one of the smartest moves you make to ease your monthly payments or free up cash and save for your next goal, especially with the way property prices are shifting across Brisbane. 

If you’re unsure where to start or just want someone to crunch the numbers for you, reach out to the team at Kelly Brothers Finance. We’re offering a free consultation to chat through your options—no pressure, just honest advice. Call us on (07) 3847 9450 or visit kellybrothersfinance.com.au to book your chat today.