Refinancing means switching your existing mortgage to a different lender or product to access a lower rate, unlock equity, or get features your current loan doesn't offer.
If you locked in a fixed rate a few years back, you might be watching that expiry date knowing the revert rate will sting. Or maybe you've been on the same variable rate since settlement and haven't checked whether you're paying more than you need to. Either way, refinancing gives you a reset without selling the property.
Why refinancing makes sense for detectives
Your income structure can work against you when lenders assess serviceability, even though your base salary and allowances are stable. Refinancing lets you move to a lender that treats shift penalties and overtime more favourably, which can unlock borrowing capacity you didn't have the first time around. You might also want to consolidate a car loan or line of credit into your mortgage to reduce monthly outgoings, or pull equity out to fund an investment property while accessing a lower interest rate at the same time.
Consider a detective who bought in without realising their lender capped the recognised portion of overtime. A few years later, with a clear repayment history and a property that's gained value, they refinanced to a lender that assessed 100% of shift allowances. That lifted their borrowing capacity enough to keep the existing property, release equity, and purchase a second.
What happens when your fixed rate period ends
When a fixed rate expires, you revert to your lender's standard variable rate unless you act. That revert rate is almost always higher than what new customers get, sometimes by half a percent or more. A fixed rate expiry is the single most common trigger for refinancing, and it's worth starting the process three to four months before the end date so the new loan settles on time.
If your fixed period is ending and you don't refinance, you're not locked in. You can switch products with your current lender or move elsewhere without penalty once the fixed term is done. The question is whether staying put gives you the rate and features you actually need, or whether another lender offers something closer to what works with your roster and repayment goals.
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How the refinance application process works
You'll need to provide income evidence, usually your two most recent payslips and a letter of employment that confirms your role and allowances. Lenders will also want to see savings history if you're pulling equity out or increasing the loan amount, and they'll organise a valuation of the property to confirm it supports the borrowing. The application itself looks similar to your original mortgage, but because you already own the property, there's no cooling-off period or vendor pressure.
Processing times vary depending on the lender and how quickly the valuation comes back, but most refinances settle within four to six weeks if the paperwork is in order. You're not obliged to proceed until you formally accept the offer, so if the valuation comes in lower than expected or the rate isn't what you were quoted, you can pull out without penalty before settlement.
Unlocking equity to fund your next property
If your property has increased in value since you bought it, refinancing lets you access that equity without selling. Lenders typically allow you to borrow up to 80% of the property's current value without paying lenders mortgage insurance, which means if your home is now worth more and you've paid down some of the loan, the gap between what you owe and what you can borrow might be significant.
That equity can be used as a deposit on an investment property, which is common among detectives looking to build wealth outside super. You're not withdrawing cash in the traditional sense, the lender increases your loan amount and the funds are released at settlement, usually transferred directly to your solicitor or into your offset account depending on how the loan is structured. The repayments go up because the loan amount has increased, but if the equity is funding an investment, the interest on that portion is typically tax deductible. For more on this approach, see expanding your property portfolio.
Weighing up variable versus fixed when you refinance
You're not locked into the same loan type you had before. If you were on a fixed rate and want the flexibility to make extra repayments without penalty, switching to variable makes sense. If you're currently on variable and want certainty around repayments for the next few years, you can fix part or all of the loan when you refinance.
Some detectives split the loan, fixing a portion to lock in a rate and leaving the rest variable so they can use an offset account or redraw without restriction. That structure works well when your income includes penalties and overtime that vary by roster, because you can park surplus funds in an offset during cashed-up periods and draw them down when shifts are lighter. If you're considering this, a loan health check can clarify whether your current loan structure still fits your situation or whether refinancing to a split makes more sense now.
What refinancing actually costs
Most lenders don't charge application fees anymore, but you'll still need to cover the valuation, which is usually between $200 and $400 depending on the property type and location. If you're switching from a fixed rate before the term ends, break costs can apply, sometimes running into the thousands depending on how much time is left and how far rates have moved since you locked in. There's also a discharge fee from your current lender, typically $300 to $500, and settlement fees for the new loan.
If the rate saving is large enough, those costs are recovered within the first year. Running the numbers before you commit shows whether refinancing makes sense now or whether waiting a few more months avoids a penalty that wipes out the benefit. We regularly see this with detectives coming off fixed rates who assume they need to refinance immediately, when sometimes the revert rate is only marginally higher than what's available elsewhere and the discharge fee alone makes it worth holding off until a clearer saving appears.
When refinancing doesn't make sense
If you're planning to sell within the next 12 months, refinancing rarely pays for itself once you factor in the upfront costs. If your current loan already has an offset account, redraw, and a rate within 0.2% of what's available elsewhere, the benefit of switching is marginal unless you're also trying to access equity or move to a lender that treats your income differently.
Refinancing also doesn't fix serviceability problems on its own. If your outgoings have increased or your income has dropped, moving to a new lender won't change the assessment unless the new lender has different policies around how they treat your allowances or existing debts. That's where consolidating other loans into the mortgage can help, because it reduces your monthly commitments even though the total debt stays the same.
Your current loan might be costing more than it should, or the equity sitting in your property might be the deposit you need for the next step. Either way, refinancing gives you the leverage to make that happen without selling. Call one of our team or book an appointment at a time that works for you, including outside business hours if that suits your roster.
Frequently Asked Questions
How long does it take to refinance a home loan?
Most refinances settle within four to six weeks if your paperwork is in order and the valuation comes back on time. You can start the process three to four months before a fixed rate expires to make sure the new loan is ready to go when the term ends.
Can I refinance to access equity in my property?
Yes, if your property has increased in value and you've paid down some of the loan, you can refinance to borrow up to 80% of the current value without paying lenders mortgage insurance. The extra funds are released at settlement and can be used for a deposit on another property or other purposes.
What does refinancing a home loan cost?
You'll typically pay for a valuation, which is usually between $200 and $400, plus a discharge fee from your current lender of around $300 to $500. If you're breaking a fixed rate early, break costs can also apply depending on how much time is left on the term.
Should I refinance when my fixed rate period ends?
When a fixed rate expires, you revert to your lender's standard variable rate, which is often higher than what new customers get. Refinancing before the expiry lets you lock in a new rate or switch to a product that suits your current situation without paying break costs.
Can I switch from a fixed rate to a variable rate when I refinance?
Yes, you can choose any loan type when you refinance regardless of what you had before. Switching from fixed to variable gives you the flexibility to make extra repayments and use features like offset accounts without restriction.
