Should you refinance in 2026? A simple checklist for homeowners

If your home loan feels heavier than it should, refinancing might help. Refinancing means replacing your current loan with a new one, either with your current lender or a new lender.

The quick “yes or no” checklist

Refinancing is worth exploring if:

• Your rate is clearly higher than what’s available for similar borrowers

• You’re paying fees for features you don’t use

• Your loan no longer matches your life (new baby, new job, income changes)

• You want to restructure for flexibility (offset account, splits, redraw)

• Has your property value changed enough to improve options (or remove lenders mortgage insurance, in some cases)?

• Are you planning anything in the next 6–18 months that needs a cleaner structure?

What people forget to check first

1. The comparison rate

   The headline rate is not the full cost. Comparison rates include some fees and help you compare loans more fairly.

2. Exit costs and switching costs

   Common costs include discharge fees, new application fees, government registration fees, and sometimes valuation fees. If you’re on a fixed rate, break costs can be the big one.

3. Your loan term

   Resetting to 30 years can lower repayments, but you may pay more interest over time. Sometimes we keep the remaining term, or use a split approach if available.

A practical way to decide

Ask: “If I refinance, how many months until the savings cover the costs?”

If the payback period is short and the new loan improves your setup (not just your rate), it’s usually worth a closer look.

Takeaways

• Refinance for the total outcome: rate, fees, features, structure.

• Always check switching costs and break costs before you move.

• Don’t automatically reset to 30 years without doing the maths.

If you’d like a clear, no-pressure view of your options, book a call so we can compare options and show you the breakeven point in plain English.

Disclaimer: General information only. This article does not take into account your objectives, financial situation or needs. Before acting, consider whether it’s appropriate for you and seek advice. Credit and lending outcomes depend on lender policy, your circumstances and the property.