Need advice on Refinancing Home loan


I just bought my first home in Aug and had home loan with Bank of Melb at 4.19% which now already increased to 4.34%
Can't have offset account.

Is it worth refinancing? Are there any better deals going around? Any other advices? thanks



    How much is the loan? how much is the property ?

    Most bank want to see 6 months loan statement to show loan repayment history.


    Home loan initially was $339,500. I have paid 3 repayments and also put extra $5000

    On refinancing, do we pay the LMI again on the loan?

    • +3 votes

      If you are going with a new bank and you don't have at least 20% in equity or deposit for the value of the property then you will have to pay the LMI again. Best to try negotiate a better deal with your current bank and if they don't budge you then go to other banks and try get the best deal possible.

      Plenty of good rates going around but there are sooooo many more things to look at other than interest rate.

      1. Do you get a fully offset savings account?
      2. Are you able to make extra payments with no charge?
      3. Do you have the ability to redraw those extra payments for a rainy day with little to no charge?
      4. Do you want credit card deals with no annual fee and other perks etc?
      5. Do you get charged an annual fee to be on some kind of Professional package that includes discounted rate and CCs etc?
      6. Are you needing a bank that has a lot of ATMs nearby or branches that allow you to deposit or withdraw cash?

      There are heaps of other options that affect a good deal, not just what the interest rate is…

      I'm happy to help answer or clarify any specifics you don't understand but there are a lot more smarter people with more knowledge than me who could be of help. BTW - Banking is not my job, but I have a keen interest in investment properties..

      Hope that helps for now.


    Hi NKDANGER, as TUHAN mentioned you are probably better off trying to negotiate a better rate with your current bank than pay the costs of refinancing and paying LMI again if you switch lenders, depending on your circumstances and plans for the property.

    We would be happy to help you with negotiating a better rate if you need a hand, either send a PM or email me (we don't charge for our service).

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