--- title: Refinance Checklist 2026: Step-by-Step Guide | GNT Finance description: A practical 2026 refinance checklist for Melbourne home owners: compare your rate, calculate savings, gather documents, avoid break costs and settle smoothly. url: https://gntfinance.com.au/blog/refinance-checklist-2026/ author: Gorakh Timilsina published: 2026-07-05 category: Refinancing --- # Refinance checklist 2026: a step-by-step guide for Melbourne borrowers **In short:** To refinance in 2026, find your current rate and loan balance, compare it with what other lenders offer, calculate the saving after fees and any fixed-rate break cost, check your equity and credit file, gather income and loan documents, apply through a broker, and let the new lender discharge the old loan. Most refinances take two to four weeks from application to settlement. Refinancing is the one financial task that almost everyone knows they should do and almost nobody enjoys. This checklist breaks it into ten steps you can work through in an afternoon, with the decision points explained so you know when to stop and when to push on. ## Step 1: know your starting position Log into your current loan and note: - Interest rate and whether it is fixed or variable - Remaining balance and remaining term - Any fixed-rate expiry date - Offset balance and redraw available - Monthly repayment You would be surprised how many people cannot name their rate. If yours ends in a number that looks nothing like what your lender advertises to new customers, keep reading. ## Step 2: estimate your equity Lenders price refinances on loan-to-value ratio. Below 80% you avoid LMI and access sharper rates. Use recent comparable sales in your street, or ask us for a free desktop valuation, then use the [equity calculator](/calculators/equity/). For illustration, a Roxburgh Park house worth $720,000 with a $520,000 loan has an LVR of about 72%. That borrower is in a strong position. A $650,000 loan on the same house sits at about 90% and would need LMI or the same lender's retention offer. ## Step 3: calculate the real saving Rate differences matter more than they look. For illustration, at 30 years principal and interest: | Loan balance | Repayment at 6.50% | Repayment at 6.00% | Monthly saving | Annual saving | |---|---|---|---|---| | $400,000 | $2,528 | $2,398 | $130 | $1,560 | | $500,000 | $3,160 | $2,998 | $162 | $1,944 | | $600,000 | $3,792 | $3,597 | $195 | $2,340 | Then subtract the costs: discharge fee from the old lender, mortgage registration and discharge fees with the state, and any application, valuation or settlement fees at the new lender. Some lenders waive fees or offer cashback. If the annual saving covers the costs within a year or so, the refinance pays for itself. The [refinance calculator](/calculators/refinance/) does this maths for you. ## Step 4: check for break costs on a fixed rate If any part of your loan is fixed, ask your lender for a written break cost quote. It can be negligible or several thousand dollars depending on the rate gap and time remaining. Sometimes the right move is to refinance only the variable portion now and the fixed portion at expiry. Our page on [breaking a fixed rate loan](/guides/breaking-a-fixed-rate-loan/) explains how the cost is calculated. ## Step 5: ask your current lender for a better rate One phone call. Tell them you are refinancing and ask for their best retention rate. Many lenders will move, and if they match the market you have saved yourself the paperwork. If they will not, you have lost nothing. Either way, get the offer in writing. ## Step 6: check your credit file Order your free credit report and look for errors, old defaults or unexpected enquiries. Fix mistakes before you apply. Multiple applications in a short period lower your score, which is why a broker applies once, to the right lender. See [credit score and home loans](/guides/credit-score-and-home-loans/). ## Step 7: decide what you want from the new loan Refinancing is a chance to restructure, not just reprice. Consider: - **Offset account:** worth it if you hold savings or run your salary through it. See [offset vs redraw](/guides/offset-vs-redraw/). - **Split loan:** part fixed for certainty, part variable for flexibility. - **Loan term:** resetting to 30 years lowers the repayment but increases total interest. Keeping your remaining term, or shorter, preserves the progress you have made. - **Debt consolidation:** rolling a car loan or credit card into the mortgage cuts the monthly outgoing but spreads a short debt over decades. Read our [debt consolidation guide](/guides/debt-consolidation-guide/) before doing this. - **Cash out:** accessing equity for a renovation or an investment property deposit. ## Step 8: gather your documents - Photo ID - Two recent payslips and your latest tax return or PAYG summary - Six months of statements for the loan being refinanced - Three months of statements for everyday accounts - Statements for any other debts - Council rates notice for the property - Self-employed: two years of tax returns and financials, or alternative documentation Our [home loan documents checklist](/guides/home-loan-documents-checklist/) has the full list by applicant type. ## Step 9: apply and get a valuation Once we lodge the application, the new lender orders a valuation and assesses your income at their rate plus 3 percentage points. Approval typically follows within a week or two for a clean file. You will sign loan documents, and the new lender then arranges to pay out the old one. ## Step 10: settle and set up the new loan At settlement the new lender pays out the old loan and takes over the mortgage. Redirect your salary, move your direct debits, transfer your offset balance and set up extra repayments if you planned them. Then put a note in your calendar for 12 months' time to check your rate again. ## When refinancing is not the right move - You plan to sell within a year and the costs will not be recovered. - You are on a fixed rate with a large break cost and short time remaining. - Your LVR is above 80% and the new lender would charge LMI that wipes out the saving. - Your income has fallen or you have new debts that would fail assessment. In that case, focus on a retention offer from your current lender. Our [when to refinance guide](/guides/when-to-refinance/) goes deeper on timing. ## Frequently asked questions ### How long does refinancing take in 2026? Two to four weeks is typical from application to settlement for a straightforward owner-occupied loan. Delays usually come from missing documents, valuation issues or the outgoing lender's discharge processing. Some lenders offer faster digital settlements for simple refinances, and a broker can steer you towards them if speed matters. ### How much does it cost to refinance a home loan? Costs typically include a discharge fee from your existing lender, government mortgage registration and discharge fees, and any application or valuation fees from the new lender. Fixed-rate break costs can add much more. Many lenders waive their fees or pay a cashback, so the net cost is often small relative to the interest saved. ### Will refinancing hurt my credit score? A single refinance application creates one credit enquiry, which has a minor and temporary effect. Applying to several lenders in quick succession has a larger effect because each enquiry is recorded. Using a broker who selects one suitable lender and lodges once keeps the impact minimal. ### Can I refinance if my property value has dropped? Yes, if your loan-to-value ratio remains at or below the new lender's limit, ideally 80% or under to avoid LMI. If the drop has pushed your LVR above 80%, refinancing may still be possible but the LMI cost could outweigh the saving. In that situation, negotiating a better rate with your current lender is usually the better first move. ## Talk to GNT Finance GNT Finance handles the whole refinance for you: rate comparison, break cost checks, the application and settlement with the new lender, at no cost to you for our home-loan service in most cases. [Book a free consultation](/contact/) or call Gorakh Timilsina on 0426 403 703.