Frequently asked questions about refinancing a mortgage

Can I refinance my mortgage?


Under Australian law, banks cannot force their customers to stay with them for the life of the loan. However, your bank may impose financial penalties for leaving (such as exit fees).

Our mortgage brokers in Cairns can review your loan for you and tell you what these fees and costs will be, and also what the “switch costs” associated with refinancing your mortgage will be.

In every case, we will make sure that if you choose to refinance, you will be financially better off under the new deal.

Should I refinance my mortgage?

If you have had a home loan for more than two years (and particularly if your home loan is on a variable rate), then we strongly recommend you review your loan.

The chances are that you can negotiate a better rate and terms, either with your existing bank or with a new bank.

You may also want to review your mortgage when your financial circumstances change – for example, when you want to buy another property, or you have just had a baby.

One of our mortgage brokers in Cairns can help you compare your loan against the products currently in the market, and determine how much you can save over the life of the loan (potentially tens of thousands of dollars).

When can I refinance my mortgage?

There is no time limit on when you can refinance your mortgage. Theoretically, you can refinance the day after you take out your initial home loan.

In most cases, we find that borrowers can get better rates from refinancing with a new bank when their home loan is more than two years old. Banks tend to value new business far more than existing business, and will offer lower rates to attract new customers.

If you’re on a variable rate, your current bank has probably increased the rate over time or failed to pass on rate cuts, so the rate you’re on is no longer competitive.

What are my mortgage refinancing options?

Just as there are literally hundreds of loan options available to you when you buy your house, there are just as many options available to you (and in many cases more)  when considering a refinance.

You should always investigate the market at the time you’re ready to refinance.

For expert advice, speak with one of our mortgage brokers.

What are the mortgage refinancing rates?

Mortgage refinancing rates will differ from bank to bank, and rates and lending criteria can vary from week to week. Other factors that can impact rates are the type of loan, and your personal circumstances (including the equity ratios in your property).

It is important that you review the market at the time you want to change your financial arrangements. Contact Preston Finance & Insurance for advice and assistance.

Can I refinance a mortgage if I have bad credit?


Bad credit may limit the options that are available to you, but it is in no way a barrier to you refinancing your mortgage.

Preston Finance & Insurance in Cairns will help you source and compare your options. Contact us for a free consultation.