How much can I save by refinancing my mortgage?

Refinancing your mortgage could save you anywhere from $3,000 to $15,000 per year, depending on your loan amount and the rate difference you secure.

You're working shift patterns that don't line up with banking hours, and reviewing your home loan probably sits somewhere between cleaning the gutters and organising the garage on your priority list. But if you took out your mortgage more than two years ago, or your fixed rate period is ending, there's a solid chance you're paying more than you need to. The difference between your current rate and what's available now could mean thousands of dollars that could be going toward your offset account, your next property purchase, or just covering the rising cost of everything else.

What actually drives the savings when you refinance?

The main driver is usually the interest rate difference between your current loan and what you can access now. A reduction of even 0.5% on a $600,000 loan translates to around $3,000 less interest paid each year. Over a typical loan period, that compounds significantly.

But the rate isn't the only factor. Many detectives we work with are on loans they set up years ago that lack features like offset accounts or flexible redraw options. Consider someone who refinanced from a basic variable loan at 5.8% to a package with a lower rate plus an offset account. They dropped their rate to 5.3%, but the offset account delivered the bigger ongoing impact. With $40,000 sitting in offset from their savings and irregular overtime payments, they effectively reduced the interest on another $40,000 of their loan. The combination saved them around $5,200 in the first year alone.

If you're coming off a fixed rate that you locked in a few years back, the gap between what you were paying and what you're about to roll onto could be significant. Many fixed rates from a couple of years ago are expiring onto variable rates that are noticeably higher, and reviewing your options before that happens means you control the outcome rather than just accepting whatever your current lender offers.

Refinancing to access equity for your next move

Refinancing isn't just about lowering your rate. If your property has increased in value and you want to access equity to buy an investment property or fund a renovation, refinancing lets you unlock that equity and restructure your loan at the same time.

As an example, a detective who purchased in the outer suburbs five years ago for $480,000 recently had their property valued at $650,000. They wanted to buy an investment property but didn't want to drain their savings. By refinancing, they accessed $80,000 in equity while also moving from their existing rate of 5.9% down to 5.4%. The refinance gave them the deposit for their next purchase and reduced their repayments on the original loan by around $180 per month. The whole process took about four weeks, timed around their roster, and they didn't have to take a day off to make it happen.

If you're planning to expand your property portfolio, combining the equity release with a rate review means you're making one change that delivers two outcomes. You're not just shuffling debt around, you're actively improving your position.

When does refinancing actually make sense?

Refinancing makes sense when the financial benefit outweighs the costs involved, and when your current loan no longer suits your situation.

You'll typically face some costs when you refinance: discharge fees from your current lender, application fees for the new loan, and sometimes valuation fees if the lender requires an updated property valuation. These can add up to anywhere between $800 and $1,500 in most cases. If refinancing saves you $4,000 per year, you're ahead within a few months. If the saving is smaller, or you're planning to sell the property soon anyway, it might not be worth the effort.

Timing matters too. If your fixed rate period is ending in the next three to six months, that's the right window to start the refinance process. You'll avoid break costs, and you can lock in your new rate to start the day your fixed term expires. If you're already on a variable rate and it's been more than a year since you reviewed your loan, it's worth checking what else is available. Rates and loan features shift regularly, and what was the right loan two years ago might not be the right loan now.

Could you actually be paying too much without realising it?

Most detectives we speak to don't realise they're on a higher rate than necessary until they ask. Lenders don't automatically move you to their current advertised rates, and loyalty often costs you money in this industry.

If you're still with the lender you first borrowed from, and you haven't negotiated or refinanced since then, there's a strong chance your rate has crept up relative to what new customers are getting. The gap can be anywhere from 0.3% to 1% or more, depending on how long you've been with them and what type of loan you're on. That difference might not sound like much, but on a $500,000 loan, a 0.7% difference costs you $3,500 per year.

A loan health check takes about 15 minutes and shows you exactly where you stand compared to what's currently available. If there's a significant gap, refinancing brings you back in line. If your current loan is still solid, at least you know.

What happens during the refinance application?

The refinance application involves submitting income verification, details about your current loan, and information about your property for valuation purposes. Most lenders will assess your borrowing capacity based on your current income, existing debts, and living expenses.

Because you're a detective, most lenders recognise your employment stability and income structure, which usually works in your favour during the assessment. Shift penalties and overtime can often be included in your income calculation if you can show consistent patterns over the past few months. The application itself is something we handle on your behalf, and because we work with your roster, you're not stuck making calls during business hours or taking time off to chase paperwork.

Once your application is approved and your new loan settles, your old loan is paid out automatically, and your repayments switch over to the new lender. The whole process from application to settlement typically takes three to five weeks, depending on how quickly the valuation and paperwork move through.

If your situation has changed since you first bought your property - whether that's a pay increase, paying down other debts, or building up savings in offset - you might find you can access a lower interest rate than you could when you originally borrowed. Your circumstances now matter more than your circumstances then.

Refinancing isn't about chasing the absolute lowest rate at any cost. It's about making sure your loan still fits your situation, that you're not paying more than you should be, and that the features you're paying for are actually useful to you. If you haven't looked at your mortgage in the last couple of years, or your fixed rate is ending soon, it's worth having the conversation. Call one of our team or book an appointment at a time that works for you.

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