A refinance checklist built around the real decision

1. Write down the reason for reviewing

Be precise about the intended improvement. Reducing total cost, improving monthly cash flow, gaining an offset, changing the loan term or preparing for another purchase are different goals. Rank them before comparing products.

• Primary goal and acceptable trade-offs
• Expected time before sale, repayment or another refinance
• Features used now and features genuinely needed
• Upcoming income, expense or property changes

2. Capture the current loan baseline

Use current documents, not memory. Record the balance, rate, repayment, remaining term, fees, repayment type and current offset or redraw position. Ask the lender about discharge costs and, for a fixed loan, an indicative break cost.

Also note bundled accounts, cards or discounts that could change when the old package closes.

• Recent statement and current payout estimate
• Contractual remaining term and repayment frequency
• Fixed-rate or interest-only end dates
• Discharge, break and package implications

3. Check the new application position

Refinancing requires a new assessment. Update income, expenses, liabilities and credit limits, and consider whether employment or other circumstances have changed. The new lender may value the property differently from an online estimate or prior valuation.

A higher loan-to-value ratio can narrow options or add costs. Do not assume past approval means current approval.

4. Compare equivalent scenarios

Hold the loan balance, repayment type and remaining term constant first. Compare interest, recurring fees, upfront costs and useful features. Then model any intentional change, such as a shorter term, separately so its effect is visible.

Calculate the approximate break-even period for switching costs and consider whether you are likely to keep the loan that long.

5. Read the offer and approval conditions

Check whether pricing is ongoing or conditional, how offset or redraw works, what fees apply and whether the proposed loan term matches the agreed scenario. Review every approval condition and provide complete documents.

Do not close the old loan, cancel insurance or move critical funds until the refinance is formally approved and the settlement process is confirmed.

6. Complete a post-settlement check

Confirm the old loan and linked accounts were treated as expected, direct debits and salary credits have moved, the offset is correctly linked and the first repayment date and amount are known. Keep the discharge, settlement and new-loan records.