Refinancing · April 2026 · 5 min read
When a refinance is worth it (and when it quietly isn't)
A simple framework for deciding if switching lenders will actually leave you better off, once break costs, LMI, and term reset are accounted for.
A 0.4% rate difference looks compelling on a comparison site. In practice, the maths is rarely that clean once you account for break costs, discharge fees, LMI on the new loan, and, most importantly, what resetting the term does to total interest paid.
A useful rule of thumb: a refinance is worth pursuing if the all-in saving over three years exceeds the switching cost by at least 1.5×, and the new structure doesn't extend your loan term past your existing one without a clear plan.
Some of the strongest refinances we run aren't rate-driven at all. They're structural: splitting a single loan into purpose-coded splits, releasing equity for an investment deposit, or moving to a lender whose servicing policy actually supports the next purchase.
If you haven't reviewed your loan in 18 months, a 30-minute health check is usually worth the time, even if the answer is 'stay put'.
The information in this article is general in nature and does not take into account your personal circumstances. Speak with a qualified mortgage broker before making lending decisions.
