Is it worth refinancing my home loan with a broker?
Quick answer: It depends on your numbers, and switching does not always save money. MoneySmart says to "do the sums" first: add up the costs of leaving your current loan and starting a new one, then work out how long it would take to recover them. ASIC also warns that cashback offers should be weighed against interest rates and fees over the long term. A broker can help with that comparison, but the sums are worth checking yourself.
Key takeaways
Refinancing (switching home loans) means replacing your current loan with a new one, either with another lender or with your current lender.
MoneySmart lists the costs to check: break fees on fixed loans, discharge fees, application fees, internal switching fees and, depending on where you live, possibly stamp duty (we understand this does not apply to a Victorian refinance, see below).
The comparison rate helps, but it does not capture every charge, such as early exit fees.
Switching can lengthen your loan term, and lenders mortgage insurance, discharge fees and loan arrangement fees may apply.
Use MoneySmart's mortgage switching calculator to estimate the cost and the time to break even.
What does refinancing a home loan mean?
Refinancing means switching your home loan to a different loan. MoneySmart's guidance covers switching to a new lender and refinancing internally with your current lender. Either way, you take on a new loan arrangement, so the new terms and the costs of getting there both matter.
Whether it is worth it is not something an article can answer for you. We can explain what to check.
What costs should I check before switching?
MoneySmart's switching checklist names these costs:
Break fee: if you are on a fixed rate loan, you may need to pay one.
Discharge (or termination) fee: charged when you close your current loan.
Application fee: an upfront fee when you apply for the new loan.
Switching fee: a fee for refinancing internally with your current lender.
Stamp duty: MoneySmart notes that you may be liable for stamp duty when you refinance, which can depend on the state. Our understanding is that no stamp duty applies when you refinance a home loan in Victoria. We didn't find an official State Revenue Office (SRO) page that says so, so confirm with the SRO or your lender before you rely on it.
ASIC adds that lenders mortgage insurance, and discharge and loan arrangement fees, may also apply, and that switching may end in a longer-term loan. We didn't find current official guidance on typical valuation fees, so ask any lender what they charge.
How do I compare loans, and what does the comparison rate tell me?
Start with the comparison rate. MoneySmart explains that it combines the interest rate and most fees, which helps you compare the overall cost of different loans. It does not capture every charge. An older ASIC report notes it leaves out contingent fees such as early termination fees, some of which can be substantial. So check exit fees separately, in the loan documents.
Then run your own numbers. MoneySmart's mortgage switching calculator estimates the cost of switching, whether you could save by switching and how long it could take to recover the cost. We have not quoted any rates here because they change. Use current figures from each lender and the calculator.
| What to compare | Why it matters | |---|---| | Comparison rate | Combines the interest rate and most fees, but not every charge | | Exit, discharge and break fees on your current loan | A cost of leaving that the comparison rate may not show | | Application and switching fees on the new loan | Upfront costs that add to the break-even time | | Loan term | Switching may leave you with a longer-term loan | | Lenders mortgage insurance | May apply when you switch | | Cashback or other incentives | Weigh against interest rates and fees over the long term |
What about cashback offers?
ASIC advises that cashback offers should be checked against interest rates and fees over the long term. A cashback is one input, not the whole answer. We didn't find official guidance on the typical conditions attached to cashback offers, so read the lender's terms and conditions for any conditions, and ask what happens if you leave the loan early.
When might switching not suit me?
Based on the official guidance, switching may be a poor fit if:
the costs of leaving your current loan and setting up the new one take a long time to recover;
you are on a fixed rate loan and a break fee applies;
switching would lengthen your loan term; or
lenders mortgage insurance or other fees would apply to the new loan.
Another option is to talk to your current lender. MoneySmart covers refinancing internally, which may carry a switching fee. Ask what they can offer and what it costs.
What does a broker do when I refinance, and what is the duty to me?
A mortgage broker provides credit assistance, which means helping you choose or apply for a loan. ASIC says the National Credit Act requires mortgage brokers to act in the consumer's best interests when providing credit assistance, and to prioritise the consumer's interests where there is a conflict of interest. ASIC's guidance says this cannot be avoided by a notice or disclaimer.
It is reasonable to ask your broker to explain why a recommended loan suits you, and what it would cost compared with others. We didn't find official guidance on how brokers are paid in your case, so ask your broker and read their Credit Guide.
How Marl Finance can help
Marl Finance Pty Ltd (trading as Marl) is a Melbourne-based credit representative of Australian Finance Group Ltd (AFG), ACL 389087. If you'd like to talk through whether refinancing makes sense for you, we can provide credit assistance with service in English and Chinese. Our Credit Guide explains who we are and what we do. We can't say whether switching will suit you without knowing your circumstances.
Email info@marl.com.au or call 03 8849 0131, 9:30am to 5:30pm, Monday to Friday.
Frequently asked questions
Will refinancing save me money? Not necessarily. MoneySmart's advice is to do the sums first, including all the costs of switching and how long they take to recover.
Does the comparison rate include all costs? No. It combines the interest rate and most fees, but it doesn't capture every charge. Check early exit fees separately.
Can I refinance with my current lender? Yes. MoneySmart describes refinancing internally, and says a switching fee may apply.
Should I take the cashback? ASIC says to check cashback offers against interest rates and fees over the long term. Read the lender's terms and conditions.
Do I pay a broker? We didn't find official guidance on this. Ask any broker how they are paid, and read their Credit Guide.
Sources
This article is general information only. It is general in nature and does not take into account your objectives, financial situation or needs. Published by Marl Finance Pty Ltd ABN 18 616 948 540 (trading as Marl), credit representative 000496273 of Australian Finance Group Ltd ACL 389087. Our Credit Guide is at https://www.marl.com.au/credit-guide. Last updated 4 November 2026.
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