Refinance your home loan to ANZ

When you refinance your home loan, you take out a new loan to replace the old one. Your current home loan is paid out by the new loan and you repay the new home loan over time. You can refinance with your current lender or switch to a new lender.

Refinancing might make sense for you if your situation has changed, for example, if you have changed jobs or started a family. You might also want to think about refinancing if the market conditions have changed, for example if interest rates have gone up or down. In these situations, the home loan that you have may no longer be the best fit for your circumstances and refinancing could help you find a home loan that better meets your needs.

If you’re thinking of refinancing your home loan, the first step is to review your current loan. Make sure you know the rate you’re paying, any costs associated with refinancing and the terms of your home loan.

Next, compare different home loans to see if you can find a better deal than what you’ve got, or a different product which better meets your needs. You could also speak with your current lender to see if you could access any refinance options with them, adjust your current loan to help you manage your repayments better, or benefit from other features that they offer. 

Keep your financial priorities in mind as you evaluate your options. It’s not always about the lowest rate. Consider the whole loan offering, including features like offset accounts and the ability make additional repayments, to make sure you’re getting the home loan that best meets your needs.  Don’t forget to compare fees and charges as well.

The time it takes to complete a refinance will depend on things like the changes you are making to your loan and whether you’re changing your lender.  

Check out our step-by-step guide on how to refinance a home loan for more information.  

For information regarding refinance to ANZ Plus, please refer to the ANZ Plus website.

You don’t have to refinance your loan, and should only think about doing so if you’re satisfied that making changes to your loan is a good move for you. So there isn’t a set timetable for when you should refinance your home loan. If you do decide to refinance, it should be because refinancing will get you a home loan that better meets your needs.

Common reasons for refinancing include:

1. If you believe a better interest rate is available. If the market situation has changed and interest rates now are lower than when you drew down your home loan, refinancing your home loan may reduce the amount of interest you pay.

2. When your equity has increased. If your property has increased in value, the equity in your home may have increased too. You may be able to use the increased equity to negotiate better interest rates or loan terms. You may also be able to borrow against that equity to fund renovations, investments or other large expenses.

3. When your fixed loan home term or interest only term is expiring. When your fixed rate home loan term ends, your home loan usually switches to the standard variable interest rate, which may or may not be the best deal for you. If your fixed term is coming to an end, it may be a good time to review your home loan and explore your options.

4. If you’ve consistently been making repayments. This may put you in a good position to negotiate a better deal with your lender.

5. When you want to consolidate debt. If you have multiple loans or debts that have different interest rates, you may want to look into consolidating all your debts into your home loan. Home loan interest rates are generally lower than credit card or personal loan interest rates, and having just one repayment can make it easier to manage your budget. Debt consolidation is not currently available for ANZ Plus home loan.

The amount of equity you have in your home is the difference between the value of your property and the amount owing on your home loan. For example, if your property is worth $750,000 and you have $250,000 owing on your home loan, then you have $500,000 equity.

Many home loans will fund up to 95% of the value of your home, which means you’ll need a minimum of 5% equity to refinance. However, if you have equity which is less than a certain level (commonly 20%), you might have to pay Lenders Mortgage Insurance (LMI). Lenders Mortgage Insurance is insurance you pay for, but which protects the bank (not you) if you default on your loan and the money from selling your security property is not enough to repay your loan. If you have less than the required level of equity, you should talk to your lender about the cost of Lenders Mortagage Insurance when deciding whether or not to refinance.

As lenders use the amount of equity to assess risk, generally the more equity you have, the lower the risk of lending to you and the stronger your position.

Learn more about equity with our guide to understanding equity.

Lenders Mortgage Insurance does not apply to the ANZ Plus home loan.

There’s no limit to how many times you can refinance your home loan. However, you might want to check if any waiting periods apply to your current loan, or if there are any fees or charges associated with ending or changing your existing loan.

The more important consideration is whether or not it makes sense to keep refinancing when you add up all the costs, such as early repayment costs (which can be substantial), loan approval fees and legal fees. Make sure that any savings you get from refinancing (such as lower repayments) will more than cover the costs of refinancing.

To estimate home loan repayments with a new home loan

1. Enter the details of the type of home loan you’re looking for then choose an ANZ rate from the interest rate drop down. 
2. You can ‘Add a new scenario’ and choose a different ANZ home loan rate to compare estimated repayments for different scenarios side by side.

To compare current and future estimated repayments based on a different rate

1. Enter the details of your existing home loan. If you have a redraw balance on your loan, add that amount on top of your existing loan amount. For instance if you have a loan balance of $600,000 plus a $50,000 redraw amount, enter $650,000 as your loan amount. Any redraw balance will have an effect on your estimated repayments.
2. Choose ‘Enter my own interest rate’ and enter your current interest rate to see your approximate current repayments. (To check your current interest rate, log in to ANZ Internet Banking and click on your home loan account, or in the ANZ app tap your home loan account and go to 'View home loan details’.)
3. Tap ‘Add a new scenario’ and either choose an ANZ rate from the drop down menu or enter your own rate to see estimated repayments based on the different rate.
4. Compare your current and estimated new repayment for a different scenario to see the difference.

The repayment calculator does not apply to the ANZ Plus home loan.

We might be a good fit for you if: 

• You are refinancing an existing home loan between $10,000 and $2,000,000. 
• You have or are willing to open an ANZ Plus and Save accounts. 
• All borrowers are Australian or New Zealand citizens or Australian permanent residents and earn a PAYG income. 
• You would like a variable interest rate and to make principal and interest repayments. 
• You are able to apply for and manage your loan in the ANZ Plus app. 
• The loan is for no more than 80% of your property's value^{Superscript: 11} (depending on the location, it might have to be less than 80%). 

There are a few things you can’t do: 

• Refinance a loan for a property in Tasmania or the Northern Territory. 
• Fix your interest rate or pay interest only. 
• Borrow additional funds for the purposes of property purchase, debt consolidation or structural renovations. 
• Use Internet banking to apply or manage your ANZ Plus Home Loan. 
• Use Branches to apply for or manage your ANZ Plus Home loan without the use of your own device. 

See full eligibility criteria

If you have your phone on hand, you can apply to join right now! To get started, download the ANZ Plus app and check out How to open accounts.

If you need help with the ANZ Plus app, check out how to Contact ANZ Plus Support.

Pick up your phone to switch your loan – it’s as simple as that! If you meet our eligibility criteria, you can complete your refinance application in the ANZ Plus app and apply in your own time.

If you don’t have the ANZ Plus app, it’s available from the App Store or Google Play Store. When you join you’ll be able to apply for the ANZ Plus transaction and savings accounts. You’ll need these to start your home loan application.

First, check if you’re eligible for a home loan. You can tell us a bit about yourself, get a value on your property in just a few minutes, and set some simple loan preferences to see if we’re a good fit. We’ll run a credit check to pre-fill some of your finances. After that, you can check the numbers, add anything that’s missing, or change anything that's not quite right.

Submit your application and put up your feet while you wait for us to get back to you. We’ll be in touch in-app, and may need to ask you for additional information, so it’s best to enable notifications. To check your notification settings, go to the Profile icon and tap on Notifications.

If approved, you can view and accept your Loan Documents in the app. Once your new loan has been set up, use the ANZ Plus app to take control of your finances with simplified loan management, access to loan notices, and receive ongoing support from our Coaches.

If you need help during your application, simply tap to Get Help when it’s displayed on screen for tailored FAQs and access to Coach support. Otherwise, you can head to the Support tab of the app to get in touch.