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Refinancing made simple.

Woman making coffee in kitchen

Refinancing your home loan is a great way to ensure control over your finances and to really leverage the benefits that come with owning property. The steps to refinance are, thankfully, simpler than the process of purchasing a house, but it still involves some key considerations.

Speak with a home loan consultant today to discuss your options.

Find a home loan consultant. 

Take a look at your current budget.

If you’ve been on autopilot for a while, it’s worth getting to know your loan in detail once again, from the interest rate you’re currently paying, as well as the monthly or annual fees.

Then look at your loan in the context of your current household budget - has the interest rate changed? Are the repayments dragging you down? Could you afford to pay a little extra? Are you expecting any windfalls (e.g. inheritance) or costs to take into account in the future? These are all great questions to ask yourself when deciding if refinancing is on the table.

Work out how refinancing can work for you.

Since there are so many ways to refinance with a lot of different choices involved, you must have a solid idea of what you’re trying to achieve with this step. Locking this in will help you decide how to move forward and which financial option works best for your circumstances. There are two main reasons people choose to refinance: they want to access the equity in their property or their financial circumstances have changed.

Get some help with our refinance calculator.

Access equity.

Equity is the difference between the market value of your property and the amount you still owe on it - this is also expressed as your current loan-to-value ratio, or LVR. Houses are by and large an appreciating asset; if you’ve been paying attention to the property market even a little in the last 20 years - they can appreciate quite a lot. This can be hundreds of thousands of dollars made available to you - often to put down a deposit on another property.

When you’re refinancing, we’ll look at your LVR and, as a rule of thumb, lend you enough to bring your total ratio up to 80%. Contact us to confirm your current LVR and answer your questions.

Your circumstances have changed.

Maybe your fixed rate term has lapsed and it’s time to reassess your loan. Or you might be five or 10 years in and your financial situation is different than when you first started - for better or for worse. Whatever life has thrown at you, refinancing your loan can give you a host of options in taking charge of your finances:

  • Pay off your loan quicker. When it comes to loans, time is money. Refinancing to a lower rate but keeping up the same monthly payments can shave years off your loan - and save yourself a lot of interest in the process.
  • Save some serious money. If it’s a borrower’s market, you might be able to refinance to the best new deal of all: dropping to a lower rate and shortening the term. For example, if you’re five years in, a new loan for 25 years instead of 30 with a lower rate can save tens of thousands in both principal and interest, and get you debt-free sooner.
  • Ride through a tough spot. Lower your monthly repayment by refinancing to a lower rate but with the same term. So if you’re five years in, moving back to a new 30 year term with a lower rate can be a medium-term solution, though increasing the overall amount of interest you pay.
  • Take advantage of more flexibility. Maybe you started off with a loan that only offered the bare essentials, but you’re at the stage you could really use the benefits of a more sophisticated loan. Like our own Ultimate Package option, these types of loans offer a holistic raft of benefits for all your financial needs, like no credit card fees, an offset account, no penalty for extra repayments, bonus rates on term deposits, discounts on insurance and more.
  • Debt consolidation. In some cases, we can consolidate all your debts into your home loan - for example credit cards and vehicle loans you’ve also taken out with Defence Bank. Transferring these debts into one repayment both streamlines your finances and brings them under the much lower interest rate of the home loan.

Talk to us.

Whether you’re refinancing from a different lender or interested in another of our home loans, the next step is simply having a chat with a home loan consultant to discuss your options. Our people are loan experts and after working together on having a thorough understanding of your situation, you might just be surprised at the money you can release and save. In many parts of Australia, specialist home loan consultants are available at on-base branches or to call out and meet with you.

Frequently asked questions.

You can buy a new or used car or motorcycle up to, and including, 5 years old with a car loan. If you would like to purchase an older car, contact us as you may do so with a personal loan. 

You need to have at least 5% genuine savings plus enough funds to cover fees and charges.

Where you have less than a 20% deposit, lenders mortgage insurance (LMI) or, if you are eligible, a Home Guarantee Scheme will be required. Speak to a lender to find out more.

Look at our home loan options.

The Defence Home Ownership Assistance Scheme (DHOAS) assists current and former Australian Defence Force (ADF) members and their families to achieve homeownership.

DHOAS is administered by the Department of Veterans' Affairs (DVA) on behalf of the Department of Defence.

DHOAS provides eligible current and former serving members of the Permanent Force and the Reserves with a subsidy on the interest of their home loans.

The subsidy is paid monthly, directly into a DHOAS home loan. The amount of subsidy you receive depends on your subsidy tier level and the balance of your home loan up to your subsidised loan limit. 

To learn more about Defence Bank DHOAS home loans click here. 

To find out more about DHOAS and your eligibility click here.