Guide to refinancing your home loan

How to refinance your home loan

Refinancing can help you move to a home loan that better suits your current needs, whether you're looking for different features, competitive interest rates or greater flexibility with your loan. While the process can seem daunting, it generally follows a series of straightforward steps. Here's what to expect when refinancing your home loan.

Step 1: Review your current home loan

Start by understanding where you stand with your current loan. Review your interest rate, loan balance, remaining loan term and any features you regularly use.

Think about what you'd like from a new loan and which features matter most to you. Before refinancing, you may also want to ask your current lender whether they can offer a different loan or make changes to your existing one.

Step 2: Compare home loans

Once you’ve decided why you want to refinance, compare home loan options that suit your needs. Look at the interest rate, comparison rate, fees, loan term and features such as offset and redraw.

As a first step you can compare our range of home loans, and if you’re new to NAB, you should check if you’re eligible for any of our home loan offers.

Step 3: Work out the costs and your borrowing power

Some changes to loans will involve fees. This could include break costs, exit fees, application fees, valuation fees and settlement costs charged by NAB or another bank. Compare these costs with your potential repayment and interest savings and consider how long it may take to recover them.

You may also want to see whether your borrowing power has changed since your last application.

Step 4. Apply for a home loan

Once you’ve found the right home loan for you, book an appointment online. You may need to provide identification, proof of income, current loan statements and details of your expenses, assets and other financial commitments.

We’ll normally assess your income and mortgage repayment history and may carry out a property valuation. If your application is approved, you’ll receive a letter of offer and a contract for your new loan.

Step 5. Settle your new home loan

Once you’ve signed your loan contract, settlement will occur and your new home loan will be used to pay off your old home loan. If you’re switching lenders, you may also need to complete a mortgage discharge authority. Find out more about the refinance settlement process.

Check when your first repayment is due and make sure any new offset accounts, direct debits or repayment arrangements are ready.