“Decide what you need from a home loan, such as whether you want an offset account to reduce the interest charged on your loan. Perhaps the value lies in being able to split the home loan, so that part of the rate is fixed.”

“Also, make sure you also take into account any upfront fees or costs associated with refinancing, including settlement fees, loan establishment fees, mortgage registration fees as well as the new home loan interest rate,” Baumann says.

Also, consider whether it’s easy to interact with the new home loan provider, he adds. “Can you walk into a local branch, and is the new lender offering best-in-class digital functionality?”

Staying put

Refinancing with your current lender is another option, which can put you in a better position to negotiate on interest rates while still having access to existing benefits.

“At the end of the day, it is important the pros associated with refinancing outweigh any cons,” he says.

CommBank offers a suite of flexible home loan products, as well as a raft of budgeting tools and services through their award-winning app. The bank also provides customers with value beyond the home loan, through:

• Compassionate Care, offering eligible owner occupiers support for home loan repayments for around 12 months if an eligible borrower, their spouse or dependant passes away or is medically certified with a terminal illness;
• Sustainability and renewable upgrades like solar or batteries – through CommBank’s ultra-low fixed rate Green Loan; and
• Discounts on key utilities like electricity and NBN.

CommBank. Home loans for real life. Whether you’re buying or refinancing, we can support you to achieve your home ownership goals.

Applications are subject to credit approval. Conditions, fees and charges apply.