If you haven’t reviewed your home loan in the last 12 months, you could be overpaying. Compare your current loan against 70+ lenders and discover potential savings with Gladstone’s experienced refinancing broker.
Benefits:
- Find out if you can reduce your interest rate and monthly repayments
- Access equity in your home for renovations, investments, or debt consolidation
- Switch loan features or structures to better suit your current circumstances
Get Your Free Refinance Assessment – Call: 0409 311 985
20+ Years in Gladstone | 500+ Happy Clients | ASIC Licensed Broker | Refinancing Specialists
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What is Home Loan Refinancing?
Refinancing means replacing your existing home loan with a new loan, either with your current lender or a different one. The goal is usually to get better terms: a lower interest rate, access to equity, better features, or a loan structure that suits your current situation better than your original loan does.
At AJ Home Loans Gladstone, I help homeowners review their current loans and determine whether refinancing could save money, provide access to funds, or better support their financial goals.
With over 20 years helping Gladstone homeowners, I understand when refinancing makes sense and when you’re better off staying with your current loan.
Why Refinance Your Home Loan?
What are the common reasons Gladstone homeowners refinance?
Lower Interest Rate & Reduced Repayments
Interest rates change constantly, and lenders compete for new customers with better rates than they offer existing borrowers. If you’ve been with your lender for several years, there’s a strong chance you’re paying more than necessary. Even a 0.5% rate reduction on a $400,000 loan can save you over $1,000 per year in interest.
Access Equity for Renovations or Investment
As you pay down your mortgage and property values increase, you build equity in your home. Refinancing can allow you to access this equity for home improvements, purchasing an investment property, or other investments. This lets you use the wealth locked in your home while maintaining your property ownership.
Consolidate High-Interest Debts
If you’re carrying credit card debt at 18-22% interest or personal loans at 10-15%, consolidating these into your home loan at 6-7% can dramatically reduce your interest costs and simplify your finances to one manageable repayment. A $30,000 credit card debt at 20% costs $6,000 per year in interest; refinanced into a home loan at 6.5%, that drops to under $2,000.
Change Loan Features or Structure
Your life circumstances change. You might want to switch from variable to fixed rate for repayment certainty, add an offset account to reduce interest, change from interest-only to principal-and-interest, or remove or add borrowers from the loan. Refinancing allows you to restructure your loan to match your current needs.
Remove Lender’s Mortgage Insurance (LMI)
If you originally borrowed with less than 20% deposit and paid LMI, but you’ve now paid down your loan to below 80% of your property’s current value, refinancing can remove this cost from your loan structure.
Switch Lenders for Better Service
Sometimes refinancing is about moving away from poor service, slow processing, or lenders who won’t work with you as your circumstances change. Better service, more flexible lending policies, and responsive communication are legitimate reasons to switch.
The Refinancing Process
How does refinancing work with AJ Home Loans?
The refinancing process is straightforward when you have an experienced broker managing it. Here’s exactly what happens:
Step 1: Refinance Assessment (Free, No Obligation)
We review your current loan: What’s your interest rate? What features do you have? What are you paying in fees? What’s your loan balance and property value? I’ll assess whether refinancing could benefit you, and if so, by how much. This honest assessment means I’ll tell you if you’re better off staying with your current loan.
For most homeowners, if potential savings are less than $2,000 over two years, refinancing costs may outweigh benefits. I provide realistic numbers so you can make an informed decision.
Step 2: Goal Clarification
What are you trying to achieve? Lower repayments? Access equity? Consolidate debt? Different goals require different loan structures. Some borrowers want to pay their loan off faster, others want to reduce monthly repayments, and some need to access funds. Understanding your priority ensures we find the right solution.
Step 3: Market Comparison & Lender Selection
I compare loan products from 70+ lenders, focusing on options that deliver your goals. This includes major banks, regional lenders, and specialist providers. Not all lenders are competitive for refinancing, and some have better policies for specific situations (accessing equity, debt consolidation, self-employed borrowers, etc.).
You’ll receive clear information showing: your potential new rate, monthly repayment comparison, any fees involved, features included, and the net benefit after all costs are considered.
Step 4: Application & Approval
Once you choose a lender and loan product, I prepare and lodge your application. I handle all documentation, coordinate property valuation (if required), and liaise with both your current lender (for discharge information) and your new lender (for approval).
Refinance applications typically take 2-3 weeks from lodgement to approval, though timeframes vary by lender and complexity.
Step 5: Discharge & Settlement
I coordinate the discharge process with your existing lender and settlement with your new lender. Your solicitor or conveyancer handles the legal paperwork, while I ensure the financial side processes smoothly. On settlement day, your old loan is paid out and your new loan commences.
Step 6: Ongoing Loan Reviews
After refinancing, I don’t disappear. I conduct periodic loan reviews to ensure your new loan continues to serve you well, and I’m available if your circumstances change and you need advice about further refinancing or accessing equity in the future.
Typical Refinancing Timeline: From initial assessment to new loan settling typically takes 4-6 weeks. If you need faster processing (to take advantage of a time-limited rate offer, for example), let me know upfront and I’ll prioritize accordingly.
Common Refinancing Scenarios
Specific situations where refinancing helps Gladstone homeowners
Scenario 1: Rate Shopping to Reduce Repayments
Your loan: $450,000 at 6.8% variable, monthly repayments $2,980
Potential refinance: $450,000 at 6.2% variable, monthly repayments $2,770
Monthly saving: $210 | Annual saving: $2,520
After factoring in discharge fees from your old lender ($350) and application fees for the new loan ($600), you’re still ahead by approximately $1,570 in the first year, and $2,520 per year thereafter.
Scenario 2: Debt Consolidation
Current situation:
- Home loan: $380,000 at 6.5% = $2,420/month
- Credit cards: $25,000 at 21% = $525/month minimum
- Personal loan: $15,000 at 12% = $445/month
- Total monthly: $3,390
Refinanced:
- New home loan: $420,000 at 6.5% = $2,678/month
- Total monthly saving: $712
- Annual saving: $8,544
Plus simplified finances with one repayment instead of three, and significantly less interest paid over time.
Scenario 3: Accessing Equity for Renovation
Current loan: $300,000, property value $600,000
Available equity: Up to 80% of $600,000 = $480,000 minus $300,000 = $180,000 usable equity
Refinance to: $350,000 (current loan plus $50,000 for renovation)
New repayments increase, but you’ve funded your renovation without personal loans or expensive credit. Plus, the renovation may increase your property value further.
Scenario 4: Investment Property Loan Restructure
Current: Owner-occupied loan for property that’s now rented out
Issue: Interest not tax deductible, loan structure doesn’t suit investment purposes
Refinance to: Investment loan structure, interest-only option, offset account for tax efficiency
Result: Maximised tax deductions, improved cash flow, better aligned with investment strategy
Scenario 5: Fixed Rate Transition
Current: Variable rate at 6.4%, concerned about rate rises
Refinance to: 3-year fixed rate at 5.9%
Result: Repayment certainty for three years, protection against rate increases, reduced monthly repayments during fixed period
These are just examples and rates and outcomes may vary depending on your current situation.
Section 5: Is Refinancing Worth It?
When refinancing makes financial sense (and when it doesn’t)
Refinancing Usually Makes Sense When:
- You can reduce your rate by 0.5% or more
- You’ve been with your lender for 2+ years without reviewing your loan
- You need to access equity and refinancing is the most cost-effective way
- Your lender won’t provide additional borrowing or flexibility you need
- You’re paying for loan features you don’t use
- You have high-interest debts that could be consolidated
- Your property has increased significantly in value
Refinancing May NOT Be Worth It When:
- Your potential savings are minimal (under $2,000 over two years)
- You’re in a fixed rate period with large break costs
- You’re planning to sell the property within 12 months
- You’ve recently refinanced (within 2 years) and costs haven’t been recouped
- Your current loan has significant features you’d lose by refinancing
- Your financial situation has deteriorated and you may not be approved
Understanding the Costs:
Refinancing involves costs that need to be factored against potential savings:
- Discharge fee from current lender: Typically $150-$400
- Settlement fees: $200-$300
- Government fees: Varies by state
- Application fee with new lender: $0-$600
- Valuation fee: $0-$400 (some lenders waive this)
- Potential LMI: If you’re borrowing more and your equity is below 20%
I calculate the break-even point for you: how long until the savings outweigh the costs. If it’s 12-18 months or less, refinancing usually makes sense. If it’s longer, we need to consider your specific circumstances.
Why Choose AJ Home Loans for Refinancing?
What makes refinancing through Coral different?
Honest Break-Even Analysis
I don’t push refinancing if it doesn’t make financial sense. You’ll get a clear breakdown of costs versus savings, showing exactly when you’ll be ahead. If refinancing won’t benefit you, I’ll tell you straight.
Comparison Beyond Just Rates
The lowest advertised rate isn’t always the best loan. I compare total costs (including fees), loan features (offset accounts, redraw, extra repayments), lender flexibility, and service quality. A slightly higher rate with better features can deliver more value than the absolute cheapest rate with restrictions.
Experience With Complex Refinances
Not all refinancing is straightforward. Accessing equity while adding a borrower, refinancing investment properties, dealing with self-employed income, working around credit issues, refinancing with split loans or mixed purposes: I’ve handled these situations hundreds of times and know which lenders will work with specific circumstances.
Current Lender Negotiation
Sometimes I can get your current lender to match or beat other offers, saving you the hassle of refinancing. I have relationships with most major lenders and can often negotiate retention rates for clients. If your lender won’t match competitive offers, at least we tried before going through the refinancing process.
Ongoing Rate Monitoring
After you refinance, I don’t disappear for another 10 years. I conduct annual loan health checks and alert clients when market rates have shifted enough that another refinance might make sense. You’re not locked into checking rates yourself; I monitor for you.
Local Gladstone Market Understanding
Gladstone property valuations, employment patterns in LNG and mining sectors, and regional lending considerations all affect refinancing applications. My 20+ years in this market means I understand what lenders see when assessing Gladstone properties and can position applications accordingly.
Frequently Asked Questions About Refinancing
Common refinancing questions from Gladstone homeowners
How often should I refinance my home loan?
There’s no set timeframe, but reviewing your loan annually is smart practice. Refinancing typically makes sense every 2-4 years if rates have dropped or your circumstances have changed significantly. I provide annual loan health checks so you know when refinancing might benefit you.
Will refinancing affect my credit score?
Applying for a new loan creates a credit enquiry, which has a minor short-term impact on your score. However, the impact is small, and consolidating debts through refinancing can actually improve your credit position over time by reducing your credit utilization ratio.
Can I refinance if I’m self-employed?
Absolutely. Self-employed borrowers can refinance, though documentation requirements are more extensive (typically 2 years of tax returns and recent financial statements). Some lenders specialise in self-employed refinancing and assess applications more favourably.
What if my property value has decreased?
If your property is now worth less than when you bought it, refinancing becomes more challenging, especially if you need to borrow additional funds. However, if you’re just seeking a better rate on your current loan balance, refinancing may still be possible. Your specific equity position determines options available.
Can I refinance to access equity and also get a better rate?
Yes. Refinancing can achieve multiple goals simultaneously: lowering your rate, accessing equity, consolidating debts, and changing loan features all in one transaction. This is often the most efficient approach.
How much equity can I access when refinancing?
Most lenders allow you to borrow up to 80% of your property’s value without paying Lender’s Mortgage Insurance. Some will lend up to 90-95% with LMI. For example, if your property is worth $500,000 and you owe $300,000, you could potentially access up to $100,000 equity (80% of $500,000 = $400,000, minus $300,000 owing = $100,000 available).
What’s the difference between refinancing and restructuring?
Refinancing means taking out a completely new loan (usually with a different lender). Restructuring means modifying your existing loan with your current lender (changing from variable to fixed, adding an offset account, etc.). Restructuring is simpler but may not get you the best available rates. Refinancing gives you access to the entire market.
Can I refinance if I have bad credit?
Possibly. It depends on what credit issues you have, how recent they are, and what your current financial situation looks like. Some specialist lenders work with borrowers who have past credit problems. Your current equity position and income stability matter more than past issues in many cases.
How do break costs work if I’m in a fixed-rate period?
If you’re still in a fixed rate period and want to refinance, your current lender may charge break costs (sometimes called economic costs). These can range from a few hundred dollars to tens of thousands, depending on how much rates have moved and how long remains in your fixed period. I calculate whether potential savings justify break costs before proceeding.
Will I need a new property valuation?
Usually, yes. Most lenders require a current valuation when refinancing, though some will use desktop valuations or automated valuation models, which are cheaper than full kerbside or internal inspections. Valuation costs are typically $0-$400 depending on the lender and valuation type required.
Can I refinance to remove someone from the loan?
Yes, this is common after separation or divorce. Refinancing allows you to remove a co-borrower, provided the remaining borrower(s) can service the loan independently. You’ll need to qualify based on income and the property’s current equity position.
Related Home Loan Services
Other loan services we provide
Home Loans Looking to purchase a new property? We can help you compare home loan options from 70+ lenders for your next purchase.
First Home Buyer Loans If you’re helping family members enter the property market, learn about our first home buyer support services.
Investment Property Loans Thinking of using equity to purchase an investment property? We specialise in investment loan structures and portfolio building strategies.
Construction Loans Planning renovations or a knockdown rebuild? We can help with construction loan finance for your building project.
Equity Release Want to access equity without refinancing your entire loan? Explore equity release options including top-up loans.
Debt Consolidation If high-interest debts are weighing you down, learn how debt consolidation through refinancing can simplify your finances.
Service Areas
Refinancing Support Across Greater Gladstone
We help homeowners refinance throughout Gladstone and Central Queensland, including:
Gladstone Area
Coastal & Regional
- Tannum Sands
- Boyne Island
- Calliope
- Mount Larcom
- Agnes Water & 1770
Other Central Queensland Areas
- Bundaberg region
- Rockhampton region
- Emerald & Central Highlands
- Biloela
Ready to Explore Your Refinancing Options?
If you’re ready to explore home loan refinancing in Gladstone, we’re here to help.
Let’s find out if you can save money, access equity, or structure your loan to better suit your future goals.
Contact AJ Home Loans Gladstone today to get started.
- Phone: 0409 311 985
- Online Enquiry: Use the contact form located above or on our contact page.
AJ Home Loans Gladstone — Helping local homeowners and families make smarter mortgage decisions.
