Why Use a Mortgage Broker for Investment Property Finance?

This article first appeared on awesomelendingsolutions.com.au.

Buying an investment property isn't just about finding the right property. The way you finance it can affect your cash flow, tax position and ability to buy again. A specialist mortgage broker can help you get all of this right from the start.

Why investors need more than a good rate

For investors, the right loan structure can matter more than the rate. A good structure can:

• Protect your tax deductions
• Keep your borrowing capacity open for future purchases
• Reduce risk by spreading loans across lenders
• Give you flexibility to sell or refinance

A poor structure can do the opposite.

What an investment broker does

1. Works out your borrowing power

Each lender treats investors differently. Some count more rental income. Some treat existing debts more generously. Some handle negative gearing differently in their calculations. A broker knows these differences and can help you borrow what you need.

2. Designs your loan structure

A broker can help you:

• Separate investment and personal debts
• Use offset accounts effectively
• Avoid cross-collateralisation (tying properties together)
• Decide between interest-only and principal and interest
• Set up separate splits for deposits and purchases

3. Plans for your next purchase

If you want to build a portfolio, the order you use lenders matters. A broker can plan which lenders to use now and which to keep for later.

4. Keeps up with rule changes

2026 has brought big changes for investors:

• Negative gearing is now limited for established residential properties bought after 7:30pm on 12 May 2026. From 1 July 2027, losses on these can only offset residential rental income or capital gains.
• New builds keep negative gearing access.
• The 50% CGT discount is being replaced from 1 July 2027 by indexation and a 30% minimum tax.
• SMSF residential borrowing – new limited recourse loans for residential property in super have been banned since 10 August 2026.
• APRA's debt-to-income limit – since February 2026, banks can only write 20% of new loans where debt is six or more times income.

A broker who works with investors every day understands how these changes affect lending.

5. Manages the process

From pre-approval to settlement, a broker handles the paperwork, liaises with lenders and keeps you updated.

What a broker isn't

A mortgage broker helps with finance. They aren't usually a tax adviser or financial planner. A good broker will work alongside your accountant and, if needed, a financial adviser or buyer's agent.

How brokers are paid

For most standard investment loans, brokers are paid a commission by the lender. This is disclosed to you. Brokers must also act in your best interests under the law.

Questions to ask an investment broker

• How many lenders do you work with?
• How many investor clients do you help?
• How would you structure my loans?
• How do the 2026 tax changes affect my plans?
• How will this purchase affect my ability to buy again?

An example

Ryan owns his home and one investment property, both with one bank. Both properties are cross-collateralised. He wants to buy again.

His broker:

• Separates the two properties so each loan stands alone
• Moves the investment loan to a lender with better rental income treatment
• Sets up a separate equity split for the next deposit
• Identifies a lender with capacity for his debt-to-income level

Ryan now has more borrowing capacity and more flexibility for the future.

Investing in 2026

Rising rates, falling values in most capitals and new tax rules mean investors need to plan more carefully than in recent years. Some investors are shifting towards new builds, which keep negative gearing and are exempt from APRA's debt-to-income limit. Others are looking at commercial property. A broker can help you understand how each option affects your finance.

Frequently asked questions

Do I need a broker if I already have a bank?

Not always, but a broker can compare many lenders and help with structure, which your bank can't do across the market.

Can a broker help me buy a second or third property?

Yes. Portfolio planning is one of the most valuable things an investment broker does.

Will a broker give me tax advice?

No. A broker can explain how lending works, but you should get tax advice from your accountant.

When should I talk to a broker?

Before you start looking. Knowing your budget and structure early helps you move fast when you find the right property, and avoids costly structure mistakes that are hard to undo later.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

How to Refinance to a Lower Interest Rate in Australia

This article first appeared on awesomelendingsolutions.com.au.

In 2026, the cash rate has risen four times, reaching 4.60% at the end of September. That has pushed up repayments for millions of Australians. While you can't control the cash rate, you can control the rate you pay on top of it. Refinancing to a lower rate is one of the best ways to take back some control.

Why your rate may be higher than it should be

Many lenders charge existing customers more than new customers. This is sometimes called the "loyalty tax". If you have had the same loan for several years, there's a good chance you are paying more than someone who just signed up.

Even a small difference matters. On a $600,000 loan, every 0.25% is worth roughly $1,000 to $1,500 a year in interest.

Step 1: Find out your current rate

Check your latest statement or online banking. Note:

• Your interest rate
• Your loan balance
• Years left on the loan
• Any fees you pay (such as an annual package fee)
• Whether you are on a fixed or variable rate

Step 2: Compare what's on offer

Look at rates for borrowers like you. The best rates usually go to borrowers who:

• Owe 80% or less of the property value (or even 60% or less)
• Have a principal and interest owner-occupied loan
• Have a good credit history
• Have stable income

Compare the comparison rate, which includes most fees, not just the advertised rate.

Step 3: Ask your current lender

Before switching, call your lender. Tell them the rate you have been offered elsewhere and ask if they can match or beat it. Many lenders have a retention team for exactly this.

If they offer a good deal, you may save money with no paperwork.

Step 4: Weigh up the costs

If you decide to switch, add up:

• Discharge fee on your old loan
• Application and settlement fees
• Government registration fees
• Break costs if fixed
• LMI if your loan is above 80% of the property value

Then compare these costs to your yearly savings. If you'll recover the costs within a year or two, refinancing is often worth it.

Step 5: Keep your loan term the same

A common trap is refinancing into a fresh 30-year loan. Your repayments drop, but you add years of interest. Where possible, keep the same remaining term, or keep paying your old repayment amount to pay the loan off faster.

Step 6: Apply and settle

Your broker or new lender handles the application, valuation and settlement. Most refinances take two to six weeks.

An example

Daniel owes $620,000 with 26 years left. His rate is 6.84%. He's offered 6.24% by another lender.

• Current repayment: about $4,255 a month
• New repayment: about $4,020 a month
• Saving: about $235 a month, or $2,800 a year

His switching costs are around $1,000, so he recovers them in about four months.

What if rates rise again?

If the RBA raises rates again, your new lender's variable rate will likely rise too. But you'll still be starting from a lower base, so you'll stay ahead. Some borrowers choose to fix part of the loan for certainty.

Watch out for these traps

• Honeymoon rates – a low rate for one or two years, then a much higher one.
• Cashbacks – useful, but not if they hide a higher rate.
• High fees – an annual fee can wipe out a small rate difference.
• Missing features – a cheap loan with no offset may cost you more if you have large savings.

Can't refinance? Try this

If falling property values or a change in income make it hard to switch lenders, you can still:

• Ask your lender for a rate review
• Move to a cheaper product with the same lender
• Make extra repayments to reduce your LVR so you qualify later

Frequently asked questions

How often should I check my rate?

At least once a year, and whenever the cash rate changes.

Is it worth refinancing for a 0.2% difference?

It can be, especially on a larger loan. Compare your yearly saving with the costs.

Do I need a broker to refinance?

No, but a broker can compare many lenders, handle the paperwork and negotiate for you.

What rate can I expect?

That depends on your loan size, LVR, loan type and credit history. Borrowers with an LVR under 60% and a principal and interest owner-occupied loan usually get the sharpest rates. A broker can show you real offers based on your situation, not just advertised rates.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

The 5% Deposit Scheme Explained: Buy Your First Home With 5% and No LMI

This article first appeared on awesomelendingsolutions.com.au.

Saving a 20% deposit can take years. While you save, prices can move and rent eats into your budget. That is why the Australian Government 5% Deposit Scheme has become so popular. It lets eligible first home buyers purchase with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Here is how the scheme works in 2026 and what you need to know before you apply.

What is the 5% Deposit Scheme?

The 5% Deposit Scheme used to be called the First Home Guarantee. Under the scheme, the government guarantees part of your loan to the lender. This guarantee covers up to 15% of the property value.

Because the lender is protected, it does not need you to pay LMI, even though you only have a 5% deposit. LMI can cost tens of thousands of dollars, so this is a big saving.

What changed in October 2025?

From 1 October 2025, the scheme was expanded:

• No income caps – your income no longer stops you from using it
• No limit on places – you no longer have to wait for a spot to open
• Higher property price caps – so you can buy in more areas
• Regional scheme merged in – the old Regional First Home Buyer Guarantee was folded into this scheme

These changes made the scheme available to many more buyers. Take-up jumped sharply in the months that followed.

Property price caps

The home you buy must be at or below the price cap for its location. Both the purchase price and the lender's valuation must be under the cap.

Some of the current caps are:

• NSW – $1.5 million in Sydney and regional centres; $800,000 in other areas
• Victoria – $950,000 in Melbourne and regional centres; $650,000 elsewhere
• Queensland – $1 million in Brisbane and regional centres; $700,000 elsewhere

You can check the exact cap for any postcode on the official First Home Buyers website.

Who is eligible?

To use the scheme, you generally need to:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Be a first home buyer, or not have owned property in Australia in the past 10 years
• Have at least a 5% deposit from genuine savings or other approved sources
• Plan to live in the home (it cannot be an investment property)

You can apply as a single person or with a partner, friend or family member.

What types of property can you buy?

You have plenty of choice. The scheme covers:

• Existing houses, townhouses and apartments
• New homes and house-and-land packages
• Off-the-plan purchases
• Vacant land with a building contract

An example

Let's say Mia wants to buy a $750,000 unit in Western Sydney.

• 5% deposit: $37,500
• Loan amount: $712,500
• LMI under the scheme: $0

Without the scheme, Mia would likely pay well over $20,000 in LMI, or she would need to keep saving for years. Because the unit is under $800,000, she may also pay no stamp duty under the NSW First Home Buyers Assistance Scheme.

Things to think about

The scheme is a great tool, but it is not free money. Keep these points in mind:

• You still have to pass serviceability. Lenders must check you can afford repayments at your rate plus a 3% buffer.
• A smaller deposit means a bigger loan. You will pay more interest over time.
• Prices can fall. With values falling across most capitals in 2026, buying with a small deposit means less buffer if prices drop.
• You need to use a participating lender. Not every lender offers the scheme.

How to apply

You cannot apply to the government directly. You apply through a participating lender or a mortgage broker who works with participating lenders. The lender checks your eligibility and reserves your guarantee as part of the loan application.

A broker can compare participating lenders, check if your property fits the cap, and make sure you also get any stamp duty or grant benefits you are entitled to.

Frequently asked questions

Is there still an income cap?

No. Since 1 October 2025, there is no income cap for the 5% Deposit Scheme.

Can single parents get a smaller deposit?

Yes. The Family Home Guarantee allows eligible single parents and guardians to buy with a 2% deposit and no LMI. They do not need to be first home buyers.

Can I use the scheme with Help to Buy?

No. You need to choose one or the other. A broker can help you work out which suits you better.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Why Your Home Loan Structure Is So Important

This article first appeared on awesomelendingsolutions.com.au.

Most people focus on the interest rate when choosing a home loan. But how your loan is set up, its structure, can matter just as much. A good structure can save you tax, give you flexibility and help you reach future goals. A poor one can cost you thousands and limit your options. Here's why loan structure is so important.

What is loan structure?

Loan structure is how your borrowing is organised. It includes:

• How many loan splits you have
• Fixed or variable portions
• Principal and interest or interest-only
• Offset and redraw arrangements
• Which properties secure which loans
• Whose names are on the loans and titles

1. Split loans for different purposes

If you borrow for different reasons, such as your home, an investment, renovations or a car, it's best to keep them in separate splits. This:

• Makes it easy to track deductible and non-deductible interest
• Helps you pay down personal debt faster
• Keeps your records clean for your accountant

Mixing purposes in one loan can make it very hard to claim interest correctly.

2. Offset vs extra repayments

If you might rent out your home one day, keeping savings in an offset account instead of paying down the loan can protect future tax deductions. Paying down the loan and then redrawing for personal use usually means the redrawn amount isn't deductible.

3. Fixed and variable splits

Splitting between fixed and variable can give you:

• Certainty on part of the loan
• Flexibility, offset and extra repayments on the rest

With the cash rate rising four times in 2026, many borrowers are using splits to balance certainty and flexibility.

4. Avoiding cross-collateralisation

Cross-collateralisation is when one lender uses more than one of your properties as security for your loans. It can:

• Make it harder to sell one property
• Give the lender control over your equity
• Make refinancing more complicated

Where possible, each property should secure its own loan. If you need to use equity from one property, consider a separate loan secured only by that property.

5. Interest-only vs principal and interest

For investors, keeping investment loans interest-only and paying down the home loan first can make sense, because home loan interest isn't deductible. But this depends on your goals and cash flow.

6. Ownership

Whose name is on the title and loan affects:

• Tax on rental income and capital gains
• Borrowing power
• Asset protection
• First home buyer eligibility

Get advice from your accountant before buying.

7. Planning for the future

A good structure considers where you want to be in five or ten years. If you plan to invest, upgrade or start a business, set up your loans so they support those goals.

How the 2026 tax changes make structure more important

The 2026 laws limit negative gearing for established residential properties bought after 7:30pm on 12 May 2026. Losses on these properties are quarantined from 1 July 2027. Properties held before then keep the existing treatment. Clean, separate loan splits make it easier to track which interest relates to which property, which is now more important than ever.

An example

Jess and Matt own their home and want to buy an investment property.

Poor structure:

• One loan with their bank, secured by both properties
• Investment deposit mixed into their home loan
• Savings used to pay down the home loan, then redrawn

Better structure:

• Home loan with an offset account
• Separate equity split for the investment deposit, secured by their home
• Separate investment loan secured by the investment property
• Investment loans with a different lender where possible

The better structure keeps deductions clear, protects flexibility and makes future borrowing easier.

Fixing a poor structure

If your loans are already tangled, it's often possible to fix them. Refinancing to separate securities, splitting loans or moving one loan to another lender can untangle things. It's best done with your broker and accountant working together.

Structure checklist

• Separate splits for each purpose
• Offset on the home loan
• Each property securing its own loan

Frequently asked questions

Can I fix a poor structure later?

Often, yes, by refinancing or restructuring. But some tax consequences can't be undone, so it's best to get it right early.

Is cross-collateralisation always bad?

Not always, but it reduces flexibility. Many investors prefer to avoid it.

How many splits should I have?

As many as you have different purposes, within reason. Your broker can help.

Who should help with structure?

A broker for the loans and an accountant for tax.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Mortgage Broker in Sydney: Local Home Loan Help From North Strathfield

This article first appeared on awesomelendingsolutions.com.au.

When you search for a "mortgage broker near me" in Sydney, you'll find hundreds of options. Choosing a local broker you can trust makes a big difference. A broker who knows Sydney understands the suburbs, the price caps, the lenders' local policies and the challenges buyers face here.

Awesome Lending Solutions is a Sydney mortgage broking business based in North Strathfield in Sydney's Inner West. We help people across Sydney and NSW buy homes, refinance and invest.

Why choose a local Sydney broker?

Local market knowledge

Sydney is a big and diverse market. Prices, property types and lender attitudes vary from suburb to suburb. A local broker understands:

• Scheme price caps by postcode
• Lender policies on unit sizes, high-density buildings and certain postcodes
• Flood zones and other issues that can affect valuations
• How NSW stamp duty and grants work

Face-to-face meetings

Many clients like to sit down in person, especially for big decisions. We also meet by phone and video for busy families and clients across NSW.

Relationships with local professionals

A local broker often works alongside conveyancers, accountants, buyer's agents and real estate agents in the area, which can make the process smoother.

About Awesome Lending Solutions

Our director and finance strategist, Albert Waldron, has been a mortgage broker since 2002 and started Awesome Lending Solutions in its current form in 2014. Over that time, the business has:

• Settled more than 1,000 loans
• Worked with a panel of over 60 lenders
• Helped clients in every state and territory except the Northern Territory

Albert is a member of the FBAA and a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Our office is at Level 1, 5 George Street, North Strathfield NSW 2137, close to Strathfield, Concord, Homebush, Burwood and Rhodes.

Who we help

• First home buyers – including the 5% Deposit Scheme, Help to Buy and NSW stamp duty exemptions
• Single parents – including the Family Home Guarantee with a 2% deposit
• Refinancers – to lower rates, consolidate debts or access equity
• Property investors – including structure, portfolio planning and the 2026 tax changes
• Self-employed borrowers – including low doc options
• SMSF borrowers – for commercial property, now that residential SMSF borrowing is banned

How the process works

1. Free first chat – we learn about your goals and situation.
2. Assessment – we work out your borrowing power and scheme eligibility.
3. Comparison – we compare suitable loans across our lender panel.
4. Recommendation – we explain our recommendation and the alternatives.
5. Application – we prepare and lodge the paperwork.
6. Approval and settlement – we manage the process and keep you updated.
7. Ongoing reviews – we check in to make sure your loan stays competitive.

The Sydney market in 2026

Sydney has seen a lot of change this year:

• The cash rate rose to 4.60% at the end of September, its fourth rise in 2026.
• Sydney home values were about 8.6% below their February peak by the end of September.
• The 5% Deposit Scheme now allows purchases up to $1.5 million in Sydney with no income cap.
• NSW first home buyers pay no stamp duty on homes up to $800,000.

These changes create both challenges and opportunities. Local advice can help you make sense of them.

What our clients value

Clients often tell us they value plain-English explanations, quick responses and the feeling that someone is on their side. Buying a home is stressful. Our job is to make the finance part as clear and calm as possible.

How brokers are paid

For most home loans, we are paid by the lender. This doesn't add to your loan costs, and we disclose all payments to you in writing. Under the law, we must act in your best interests.

Suburbs we often help with

We regularly help buyers and home owners in North Strathfield, Strathfield, Concord, Homebush, Burwood, Rhodes, Five Dock, Parramatta and across the Inner West and Western Sydney. We also help clients in regional NSW and interstate, so wherever you're buying, we can help you understand your options.

What to bring to your first chat

• Recent payslips or tax returns
• Recent bank statements
• Details of any debts
• Your goals and rough timeframe

Frequently asked questions

Do I need to live near North Strathfield to use you?

No. We help clients across Sydney and NSW, and in most other states, by phone and video.

Is the first meeting free?

Yes. There's no cost or obligation for an initial chat.

How quickly can I get pre-approval?

It depends on the lender and your documents, but many pre-approvals are completed within a few days to two weeks.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Investment Loan Rates in Australia: How to Find the Best Deal

This article first appeared on awesomelendingsolutions.com.au.

Investment loan rates directly affect your cash flow and returns. Even a small difference can add up to thousands of dollars a year. But the "best" investment loan isn't just the one with the lowest rate. This guide explains how investment rates work and how to compare them properly.

Why are investment rates higher?

Lenders usually charge investors a little more than owner-occupiers. This is because:

• Investors are seen as slightly more likely to default in tough times
• Regulators expect banks to hold more capital against investor loans
• Investment loans are often interest-only, which carries more risk

The gap between owner-occupied and investor rates changes over time, so it's worth checking the current market.

What affects your rate?

Your rate depends on:

• Repayment type – interest-only rates are usually higher than principal and interest
• Loan to Value Ratio (LVR) – lower LVRs usually get better rates
• Loan size – larger loans may get bigger discounts
• Rate type – variable, fixed or split
• Your profile – income, credit history and portfolio size
• The lender – each has its own pricing and appetite for investors

Rates in 2026

The Reserve Bank raised the cash rate four times in 2026, to 4.60% at the end of September. Most lenders passed these rises on to variable rates. If you haven't reviewed your investment loan this year, you may be paying more than you need to.

How to compare investment loans

1. Compare the comparison rate

This includes most fees and gives a better picture of the real cost.

2. Check the interest-only terms

If you want interest-only, ask:

• How long can I have interest-only?
• What's the rate difference?
• What happens when it ends?

3. Look at features

• Offset account – useful, but for investment loans, an offset on your home loan is often more valuable
• Split loans – useful for different purposes
• Free extra repayments

4. Check lender policies

This is often more important than the rate for investors. Ask:

• How much rental income will you count?
• How do you treat negative gearing in serviceability?
• Do you accept my property type and location?
• How do you assess existing investment loans with other lenders?

Since February 2026, banks are limited in how much lending they can do where total debt is six or more times income. If you have several properties, some lenders may have more capacity than others.

5. Watch the fees

Annual package fees are common. On larger loans, a package can be worth it for the rate discount. On smaller loans, it may not be.

An example

Two investment loans on $600,000:

Loan A: 6.49% interest-only, $395 annual fee

Loan B: 6.69% interest-only, no annual fee

Interest cost per year:

• Loan A: about $38,940 plus $395 = $39,335
• Loan B: about $40,140

Loan A is around $800 cheaper each year, even with the annual fee.

Tax and your rate

Interest on investment loans is usually tax deductible. But the 2026 tax changes mean that for established residential properties bought after 7:30pm on 12 May 2026, losses can only be used against rental income or capital gains from 1 July 2027, not against your wages. This changes the after-tax cost of interest for some investors. A lower rate helps no matter which rules apply to you.

Ways to get a better rate

• Ask your current lender for a rate review
• Reduce your LVR below key thresholds (like 70% or 60%)
• Switch from interest-only to principal and interest if it suits your plan
• Use a broker to compare a wide range of lenders

Fixed or variable for investors?

Fixed rates give certainty for budgeting, which some investors value when rates are rising. Variable rates give flexibility to sell, refinance or pay down without break costs. Many investors split their loans.

Frequently asked questions

Is the lowest investment rate always best?

No. Lender policy and features can matter more, especially if you plan to keep buying.

Can I get owner-occupied rates on an investment?

No. If you rent out the property, it must be on an investment loan.

How often should investors review their rates?

At least once a year, and whenever the cash rate changes.

Do all lenders charge the same investor premium?

No. Some lenders price investors much more competitively than others, which is why comparing a wide range matters.

Will a lower rate improve my borrowing power?

Slightly, yes. Lenders assess your repayments at your rate plus 3%, so a lower rate can help a little with serviceability for future purchases.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Home Loan Refinancing Options in Australia: Which One Suits You?

This article first appeared on awesomelendingsolutions.com.au.

Refinancing isn't one single thing. There are several ways to refinance, and each one suits a different goal. Before you start, it helps to know what you want to achieve. Then you can choose the option that fits.

Option 1: Ask your current lender for a better rate

This is the simplest option. You stay with your lender but ask for a lower rate. Many lenders offer better rates to new customers than to existing ones. If you ask, especially with a competing offer, they may lower your rate.

Best for: people who are happy with their lender and want a quick saving with no paperwork.

Pros: fast, no new application, no fees.

Cons: your lender may only offer a small discount.

Option 2: Switch to a new lender

You move your loan to a new lender with a lower rate or better features.

Best for: people who want the best possible rate or features their current lender doesn't offer.

Pros: potentially larger savings, access to better products.

Cons: new application, valuation and some fees.

Option 3: Switch products with your lender

Some lenders let you change to a different product, such as a loan with an offset account, without a full refinance.

Best for: people who need different features but like their lender.

Option 4: Cash out refinance

You refinance for a higher amount and take out some of your equity as cash, for things like renovations or investing.

Best for: people with good equity and a clear purpose for the funds.

Pros: access to cash at a home loan rate.

Cons: bigger loan, more interest. Lenders will want to know how you'll use the money.

Option 5: Debt consolidation

You roll higher-interest debts, like credit cards or personal loans, into your home loan.

Best for: people struggling with multiple debts who want one lower repayment.

Pros: lower interest rate, simpler budgeting.

Cons: short-term debts become long-term debts. If you don't repay them faster, you may pay more interest overall.

Option 6: Change your rate type

You can refinance to change between:

• Variable – flexible, often with an offset account
• Fixed – certainty for one to five years
• Split – part fixed, part variable

With the cash rate at 4.60% after four rises in 2026, some borrowers are looking at fixed rates for peace of mind. Others prefer to stay variable in case rates fall later. A split loan can give you a bit of both.

Option 7: Restructure your loans

Refinancing can also be a chance to fix a poor loan structure. For example:

• Separating investment and home loan debt for tax reasons
• Splitting a loan to use an offset account effectively
• Removing a former partner from a loan after a separation
• Releasing a guarantor

Option 8: Refinance an investment loan

Investors can refinance to lower rates, switch between interest-only and principal and interest, or release equity for the next purchase. Investors should also think about recent tax changes, such as the 2026 negative gearing rules, before restructuring.

How to choose the right option

Ask yourself:

1. What is my main goal? Lower repayments, cash, features or certainty?
2. How much equity do I have? Ideally your loan is 80% or less of the property value.
3. How long will I keep the loan? This affects whether fees and costs are worth it.
4. Am I on a fixed rate? If so, check break costs.
5. Has my financial situation changed? This affects what lenders will approve.

Refinancing in NSW

In NSW, refinancing involves registering a new mortgage and discharging the old one through the land registry. Your new lender usually handles this through electronic settlement. Government fees apply, but they are usually a small part of the overall cost.

An example

Jess has a $480,000 loan at 6.89% with her original lender. She also has a $12,000 credit card at 19.99%.

• She refinances to a new lender at 6.19%.
• She adds the credit card to her home loan.
• Her total monthly repayments drop significantly.

Jess commits to paying an extra $350 a month so the credit card debt is still cleared within three years.

Frequently asked questions

Which refinancing option saves the most?

It depends on your situation. Switching lenders often gives the biggest rate cut, but asking your lender first is quick and easy.

Can I do more than one option at once?

Yes. Many people switch lenders, change rate type and consolidate debt in one refinance.

Is now a good time to look at my options?

If you haven't reviewed your loan this year, yes. Four rate rises in 2026 mean many loans are no longer competitive.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.