Should I Refinance My Home Loan?

Generally yes, though most lenders prefer to see at least three to six months in a new role, or confirmation you've passed probation. Some lenders will still consider an application within this window if you're in the same industry and on a stable salary — it's very lender-dependent, so this is worth checking case by case rather than assuming it rules you out.

This is difficult with most mainstream lenders, since serviceability assessments rely on verifiable income. Options are limited and depend heavily on individual circumstances, such as other income sources, assets, or a partner's income on a joint application. It's worth a direct conversation to understand what, if anything, is realistic in your situation.

Yes, many lenders accept casual income, typically averaged over a twelve-month period using payslips and an employment letter or payment summary. Consistency matters more than the "casual" label itself — steady hours over time are generally viewed more favourably than sporadic or declining income.

There's no fixed rule, but refinancing repeatedly within short periods purely to chase cashback offers usually isn't worth the fees and admin involved. For a full breakdown of how often to review your loan and what to look out for, see how often should you review your home loan.

Beyond the headline rate: What are the total fees involved? Does the new loan include a genuine 100% offset? What's the comparison rate, not just the advertised rate? Will my loan term reset, and does that matter to my strategy? And critically — what am I actually trying to achieve by refinancing?

The most common ones are chasing the lowest advertised rate without checking the comparison rate or fees, letting the loan term reset to 30 years without meaning to, not checking offset account quality, and refinancing without a clear goal in mind. Structure matters as much as rate — sometimes more.

Retention offers are often designed to be just competitive enough to keep you from switching, without necessarily being the best deal available — occasionally including a cashback incentive to sweeten the deal. Having a genuine, comparable offer from another lender in hand strengthens your negotiating position considerably — and it's worth comparing the retention offer against the full market, not just accepting it because it looks better than your current rate.

A rate switch (sometimes called an internal refinance) stays with your current lender and simply changes your rate or product — usually faster and cheaper, but limited to what that lender offers. A full refinance moves your loan to a new lender entirely, which takes longer and involves more paperwork, but opens up the full market rather than just your current lender's offers.

It's more limited, but not automatically impossible. Some lenders specialise in near-prime or specialist lending for borrowers with credit history issues, though rates are typically higher. The right path depends heavily on what caused the credit issue and how long ago it occurred — worth a direct conversation before assuming either way.

Yes. Refinancing is a natural opportunity to reset your term to match your actual goals — shortening it to pay the loan off faster, or extending it if you need to reduce repayments for cash flow reasons. It's worth deciding this deliberately rather than letting it default to a standard 30-year term.

A decline from one lender doesn't mean every lender will decline you — different lenders use different servicing calculators and have different risk appetites. Understanding the specific reason for the decline (serviceability, credit history, property type) helps identify whether a different lender, a different structure, or a waiting period is the right next step.

You're not obligated to until the discharge process begins, and your new lender will typically handle that communication as part of settlement. Some borrowers prefer to let their current lender know earlier to see if a retention offer is presented — there's no fixed right answer, it depends on your priorities.

Watch for a low advertised rate paired with a much higher comparison rate (a sign of hidden fees), an offset account that's only partial rather than 100%, extended or unclear discharge/exit fees, and cashback offers that come with a minimum loan-term lock-in that doesn't suit your plans.

Yes. This is common, particularly for investment loans as an interest-only period nears its end. You can refinance to a new interest-only term, switch to principal and interest, or move to a different lender entirely — the right choice depends on your cash flow needs and broader strategy.

Applying for a new loan involves a credit enquiry, which can cause a small, typically temporary dip in your credit score. Multiple applications in a short period can compound this effect, which is one reason it's worth having your structure and target lender clear before applying, rather than applying broadly.

Yes, though it depends on the reason for the original guarantor arrangement. If you've since built enough equity, refinancing can sometimes be the point at which a guarantor is released from the loan entirely — worth checking if that applies to your situation.