If you’ve been in your home for a few years and haven’t reviewed your mortgage since you first signed, you’re not alone. Many Perth homeowners are paying more interest than they need to simply because refinancing sounds complicated or like too much hassle.
But a quick home loan review can often save thousands, especially as interest rates and lending criteria continue to shift across 2025. Here’s what you need to know about the real costs of refinancing, how the process works, and why it might be worth your time.
Why So Many Borrowers Haven’t Reassessed Their Loan
Most homeowners delay refinancing for one of three reasons:
- “It sounds like a lot of paperwork.”
- “I’m not sure it’s worth it.”
- “I’m comfortable where I am.”
The problem? Lenders often reserve their best rates for new customers, meaning loyal borrowers can sometimes end up paying more than necessary. A quick comparison through a mortgage broker can highlight whether you’re in line with the market or overpaying.
The Costs of Refinancing
Refinancing can involve some upfront costs, but they’re usually small compared to the long-term savings.
Typical expenses may include:
- Discharge fees: $200–$400 to close your old loan.
- New application fees: $200–$600 depending on lender.
- Property valuation fees: $300–$500 (some lenders cover this).
- Settlement or legal fees: $100–$400.
- Break costs: only if you’re exiting a fixed rate before the term ends — these vary and can be significant.
According to Canstar, the average cost to refinance a home loan in Australia is around $800, with total costs usually falling between $500 and $2,000.
How does it look in real terms
Here’s a hypothetical example of what refinancing might look like with real numbers.
Loan: $600,000
Current interest rate: 6.49%
New rate available: 5.89%
That 0.6% reduction equates to around $225 in monthly savings — or $2,700 per year.
Even if you spent $1,000 on switching costs, you’d break even in less than five months and be ahead every month after that. Over five years, that’s roughly $13,500 saved, plus the potential to shorten your loan term if you maintain your current repayment amount.
The Refinancing Process – Step by Step
It’s easier than most people think.
- Review your current loan.
Find out your current interest rate and repayments. Compare it to what lenders are offering new borrowers. - Speak to a mortgage broker.
At Base Home Loans, we do the comparison for you — reviewing options across multiple lenders and showing how much you could save. - Assess costs vs savings.
We’ll calculate any upfront fees and estimate your “break-even” point — how long before the savings outweigh the costs. - Submit your new application.
Your broker gathers the required documents, arranges valuation and manages communication with both lenders. - Settle your new loan.
The new lender pays out the old one, and you begin repayments on the new rate. - Enjoy the benefits.
Lower repayments, improved cash flow, or the opportunity to pay off your loan faster.
When Refinancing Might Not Make Sense
- If you’re planning to sell soon, you may not stay long enough to recoup costs.
- If you have a high LVR (over 80%) and would need to pay LMI again.
- If you’re breaking a fixed term with high exit penalties.
Your broker will help you weigh these factors before making a decision.
Refinancing Checklist: Are You Due for a Review?
Use this quick checklist to decide whether it’s time to look at your options:
- You haven’t reviewed your home loan in the last 2–3 years.
- Your rate is higher than what new customers are being offered.
- You’re nearing the end of a fixed-rate period.
- Your property value has increased (you may now qualify for better terms).
- You’d like to reduce repayments or access equity for renovations or investments.
- You’re curious if your current lender is still the best fit.
If you’ve ticked two or more boxes — it’s worth reviewing.
Book a Free Refinance Review
At Base Home Loans, we help Perth homeowners understand their options and handle the entire refinance process from start to finish.
We’ll compare rates across multiple lenders, calculate your break-even point, and manage the paperwork — so you don’t have to.
Book your free refinance review today and find out how much you could save.
👉 Book My Free Refinance Review
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions. The examples used here are illustrative in nature and do not reflect any actual people or clients.
