Switch when the saving clearly beats the switching costs, and reprice with your own lender when it does not. Charles models both in one free 30-minute review.
Refinancing is worth it when a lower rate repays the switching costs quickly: on a $500,000 loan, a rate 0.50 per cent lower cuts the interest by about $208 a month at first (the repayment itself falls by about $154 over 25 years) and recovers $2,000 of costs in about ten months.
It is not worth it when the loan is small, a fixed-rate break cost applies or you plan to sell soon. Sometimes the best result is a repricing call to the lender you already have, which costs nothing.
Three recorded Links files, each labelled by stage. Identities removed, figures rounded as recorded.
Your sold sign could be next.
A free 30-minute call shows where you stand.
Book my free callOne broker, a panel of more than 70 lenders and no broker fee on most loans.
You deal directly with Charles from the first call to settlement. No call centre, no hand-offs.
Major banks, non-bank lenders and specialists through Connective, so the loan is matched to your file rather than to one bank’s policy.
The lender pays a commission, disclosed in writing before you apply.
Calculate your savings
Example rates only, not current advertised rates. Set both sliders to your own figures.
Over the remaining term, before switching costs and fees, we model those before recommending a move. Estimates only, not credit advice.
Confirm your numbers.
Borrowers who have worked with Charles.
Charles and the team recently assisted me with the refinance of my investment property.
Had a great experience with Charles. He made the home loan process straightforward, was always easy to communicate with, and really knew his stuff. Would definitely recommend Charles and the team!
I have had a number of dealings with Charles from Links Property Finance. He is very knowledgeable, thorough, and detailed with his advice. Importantly, he is very approachable and easy to deal with. His advice has been beneficial to myself and my acquaintances. I highly recommend him.
The saving on the rate is only half the sum. These are the costs on the other side, and how long a lower rate takes to pay them back.
| Discharge fee | Your current lender. Set out in your loan contract or fee schedule. Charged when the old loan is closed; some lenders waive it after a set number of years. |
|---|---|
| Discharge of mortgage and new mortgage registration | NSW Land Registry Services, via the lenders. Government fees, charged per document. Paid on every external refinance; the conveyancing side of the switch. |
| Application, valuation or settlement fees | The new lender. Often waived on refinance offers, sometimes a few hundred dollars. Ask for the waiver before you apply, not after. |
| Fixed rate break cost | Your current lender, only if you are on a fixed rate. Can be nothing or thousands, depending on rates since you fixed. Get the figure in writing from the lender before deciding; it can change the answer completely. |
| Lenders mortgage insurance | The new lender, only if you borrow more than 80% of the property value. A premium based on loan size and loan-to-value ratio. The reason a refinance above 80% needs a valuation first. |
Charles builds every one of these into the comparison before recommending a move. Fees are set by each lender and by NSW Land Registry Services and change; the figures in your loan contract and the new lender's offer are the ones that count.
| $500,000 | Rate difference 0.25% lower. Interest saved $104 a month. |
|---|---|
| $500,000 | Rate difference 0.50% lower. Interest saved $208 a month. |
| $500,000 | Rate difference 0.75% lower. Interest saved $312 a month. |
| $700,000 | Rate difference 0.25% lower. Interest saved $146 a month. |
| $700,000 | Rate difference 0.50% lower. Interest saved $292 a month. |
| $700,000 | Rate difference 0.75% lower. Interest saved $438 a month. |
| $900,000 | Rate difference 0.25% lower. Interest saved $188 a month. |
| $900,000 | Rate difference 0.50% lower. Interest saved $375 a month. |
| $900,000 | Rate difference 0.75% lower. Interest saved $562 a month. |
Interest saved is the balance multiplied by the rate difference, divided by twelve, before any change to the repayment or the term. Break-even is the switching cost divided by the monthly saving, rounded up. Illustrative only; fixed rate break costs and new lenders mortgage insurance are the two items that can turn a good switch into a bad one.
Most people are paying more than they need to. One call finds out.
No documents needed. No credit check. About a 30-minute conversation, and Charles calls within one business day.
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Charles Touma, Mortgage Broker.
When your rate sits well above what new customers are offered, your fixed term is ending and the revert rate is high, or you want to release equity or fold other debts into one loan.
Many Sydney refinances come out ahead within a year; the break-even table above shows how quickly for your balance.
Four reasons, all checkable up front: the valuation lands lower than the estimate that justified the switch, borrowing capacity has moved since the original loan, credit blemishes since then, or the switch was never worth it once fees were counted.
Realistic modelling catches the last one before the application, not after.
Cash-out rules (how much equity can be released, for what purpose, with what evidence), loan age and conduct (some want a year of clean history, others accept a story), and valuations, which can differ across lenders’ panels on the same property.
On a tight loan-to-value ratio that difference decides the deal.
Yes, but the guarantee covers your current loan only. A new lender will usually charge lenders mortgage insurance above 80 per cent unless another waiver applies, so weigh the rate saving against that cost, or switch once you owe under 80 per cent.
Only if you let it. A new lender will default to a fresh 30-year term, which lowers the repayment but can add years of interest. The refinance savings calculator above shows both versions.
Ask for the remaining term you have now, or keep the new repayment at your current amount so the extra goes to principal.
Typically a discharge fee from your current lender, government mortgage registration fees, and any application or valuation fee the new lender charges, though many waive application fees on refinances. Fixed rate break costs can be large, so get them in writing first.
Slightly: a refinance application adds one credit enquiry, which has a small, short-lived effect. Several applications in a few months look like credit stress and can lower your score, which is why a broker lodges with one lender after comparing the panel.
Yes, but lenders mortgage insurance may apply again if the new loan is above 80 per cent of the valuation. The premium can erase the saving from a lower rate. A valuation first shows whether you clear 80 per cent before any application is lodged.
Refinancing rarely pays when the loan is small, the rate gap is under about a quarter of a per cent, a fixed rate break cost applies, or you plan to sell within a year or two.
A repricing request to your current lender is often the better first step.
Usually, because a broker compares refinance rates, cashback offers and lender policy across the market before anything is lodged, then runs the discharge from your old lender. Going direct shows you one lender’s products. Ask your current lender for a better rate first; Links checks that offer against the market.
An old rule of thumb, mostly from the United States, that refinancing only pays when the new rate is two percentage points lower. In Australia switching costs are usually small, so the better test is break-even.
On $500,000, a rate 0.50 per cent lower cuts the interest by about $208 a month, so $2,000 of switching costs is recovered in about ten months.
Every year, and whenever a fixed rate is ending. Lenders reprice constantly, so the loan that was sharp two years ago is usually above the rate the same lender offers new customers today. A review takes thirty minutes with your latest statement in front of you.
Yes, if the new loan stays within the lender’s limit, usually 80 per cent of the valuation without mortgage insurance. The released amount sits in a separate split, so the investment debt stays apart from your home loan for tax and clarity.
Yes, but your current lender can charge a break cost that ranges from nothing to thousands, depending on how rates have moved since you fixed. Get the figure in writing first; it can turn a good switch into a bad one.
Two to six weeks from application to settlement is typical. The new lender orders a valuation, issues formal approval and sends the discharge to your current lender. Your part is mostly documents and signatures; Charles manages the rest.
Thirty minutes is usually enough to know the right path, and what it will cost.
Or leave your name and number and Charles calls within one business day.
General information only, not credit or financial advice. Lender policies and government scheme criteria differ and change over time. All lending is subject to individual assessment and approval.
