How often should I refinance my home loan?

There's no fixed rule, but reviewing your loan every 12–18 months is sensible. You won't switch every time, but regular reviews stop you drifting onto an uncompetitive rate.

Should I refinance if I'm on a fixed rate?

It depends on the break cost. If rates have fallen since you fixed, break costs can be high. A broker can calculate the exact figure and tell you whether switching still saves money.

Is it worth refinancing for a 0.5% rate drop?

Often yes. On a $600,000 loan a 0.5% drop saves roughly $3,000 a year — far more than typical switching costs, especially with cashback. The bigger your balance, the more a small rate cut is worth.

Will refinancing reset my loan term?

It can, but it doesn't have to. You can choose a new term that matches your remaining years, or keep repayments the same to pay the loan off faster.

When should I refinance my home loan in Melbourne?

The XLOANS Broking TeamMFAA Accredited Mortgage BrokerPublished 10 June 2026

Timing matters with refinancing. Switch at the right moment and you can save thousands; switch at the wrong one and break costs can eat the benefit. Here are the clear signs it's time to refinance — and when to hold off.

Signs it's time to refinance

Your rate starts with a 6 (or higher) while new customers are being offered sharper deals.
Your fixed rate is about to expire and you're about to roll onto a high revert rate.
Your home has grown in value and you want to access equity for renovations or investing.
You're juggling high-interest debts that could be consolidated into your mortgage.
You want features your current loan lacks — like an offset account or free redraw.

When it might be worth waiting

If you're locked into a fixed rate, break costs can be significant and may outweigh the saving — though it's still worth checking the numbers.

If your equity has dropped below 20%, you may be re-charged Lenders Mortgage Insurance, which can erase the benefit. A broker will flag both before you apply.

The 'loyalty tax' trap

Lenders reserve their sharpest rates for new borrowers. Stay put for a few years and your rate quietly drifts above the market — that gap is the loyalty tax.

Reviewing your loan every 12–18 months is the simplest way to avoid it. Even if you don't switch, the threat of leaving often gets your current bank to sharpen up.

How to check if now is your moment

Start with our refinance savings calculator to compare your current rate against today's market. Then weigh the saving against switching costs — most refinances cost $500–$1,500, often covered by cashback.

If the maths stacks up, a XLOANS broker can have you switched in a few weeks.

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Frequently asked questions

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This page is general information only and not financial advice. Lending criteria, rates and government schemes change — speak to a XLOANS broker for advice tailored to your situation. XLOANS is a Melbourne-based mortgage broking service.

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