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Home loan guide / Refinancing

How to refinance your home loan

4 min read

Caitlyn Smith

Refinancing your home loan can be a great way to lower repayments and save some money. With this easy step-by-step process, we lay it all out for you, so you know what to expect.

Refinancing is the perfect opportunity to re-evaluate what you need from your home loan and to try and get a better deal.

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  1. What do you want?

    Figure out what you are wanting to gain from refinancing. It might be you’re looking to switch to interest only payments or get a loan with an offset account. Or it can simply be that you want to save some money on your repayments (because who doesn’t?). Whatever your goal is, you should get a clear picture of it in your head, so you know what to look out for when researching other loans.

  2. Get the info

    Next you should start looking around at the other loans that are available, what they offer, and how much it will cost you to make the switch. There could be some fees associated with refinancing your loan, so it is important that you get an idea of these before you start applying to refinance – so there aren’t any nasty surprises. Comparison sites can be a good place to start. (Hint: filter by “comparison rate” to find the lowest rates, which factor in associated fees.)

  3. Choose your loan

    Now it’s decision time. Once you’ve sussed everything out and know what you’re in for, it’s time to choose your loan. There isn’t one loan that will meet everyone’s needs, so pick what’s right for you. Using webchat or picking up the phone to chat to the lenders directly is a great way to feel confident about your loan choice.

  4. Apply for your loan

    After choosing which loan you will use to refinance, you need to apply for it. Not much will be different from the last time you applied for a home loan, but there are a few things that could have an impact this time around. These things can include:

    • If your credit history has changed.
    • If you’ve had any changes to your salary or other income.

    If the amount of debt or other liabilities you have has changed.

    • Proof of identity
    • Proof of income
    • Details of your current home loan
    • Details of any other debt or liabilities that you have (credit cards, car loans, personal loans etc.)
    • Details of any assets that you have (savings, shares, property, vehicles etc.)

    For your application you’ll need to provide the following documentation:

    If you’re applying for a different loan but with the same lender, you may not have to provide all of these things. But it’s a good idea to get all of this ready ahead of time, to keep things moving quickly.


  5. Break up with your bank

    Once you’ve applied, some lenders will require you to tell your current lender that you are planning to refinance, so they can prepare and send off any required information to your new lender. Other lenders (like Tic:Toc) will do this for you instead.

    Heads up

    If you're refinancing through Tic:Toc, you can jump straight to Step 8 (steps 6 and 7 have already been done for you).

  6. Pre-approval

    With other lenders the next step for your application will be pre-approving your loan. With a Tic:Toc application you’ll jump straight to full approval (Step 8) because we assess your application in real-time as you complete it. Tic:Toc also offers conditional approval (subject to property), but because you already know the details of your property you’ll jump straight to Step 8!

  7. Valuation

    Again, with other lenders you’ll need to wait for your property to get valued before you receive full approval. At Tic:Toc we do our valuations online once you’ve submitted the property address – it’s just quicker and easier that way. If we can’t value your property instantly we’ll need to do it the longer way, you can read more about the different ways we can value a property here.

  8. Full approval

    Now that your loan has been fully approved, you’ll get sent your new loan documents to sign. This part won’t be very exciting, but it does mean you’re nearly finished!

  9. Settlement

    Once you’ve sent back all the signed paperwork your new lender will begin to arrange your settlement. This will mean closing off your old loan, establishing your new one and paying any set up or discharge fees that you found out about in Step 2. The registration of the home loan and your property title will also need to be transferred to your new lender (don’t worry, a conveyancer will handle all of this). Learn more about the settlement process.

  10. Celebrate

    Congratulations! You’ve now refinanced your home loan. Your new lender will have given you all of the details of your new loan and your old loan is a thing of the past. Now you can relax and enjoy all the benefits of your new home loan.

Now that you know what you’re in for, why not kick things off by checking out the loans that Tic:Toc have to offer? Click here to get started.

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