Refinancing
Refinancing is not just about chasing a lower rate. Done well it unlocks equity to build, restructures after a build completes, or consolidates debt, as long as the saving clears the switching cost.
Last updated 14 June 2026
Refinancing means replacing your current home loan with a new one, usually to get a sharper rate, unlock equity, or restructure. The Property Plug compares lenders across WA and only recommends a switch when the rate saving clearly beats the switching costs. It is free to you and general information, not credit advice.
Four reasons people refinance
| Reason | What it achieves |
|---|---|
| Sharper rate | Lower repayments and less interest over the loan |
| Equity release | Funds to build a granny flat, renovate or invest |
| Restructure post-build | Move off a converted construction loan to a better deal |
| Debt consolidation | Roll higher-rate debts into the home loan to cut total repayments |
Consolidating debt over a longer term can increase total interest paid. Not credit advice. Last updated 14 June 2026.
Does the saving clear the cost?
A refinance only makes sense if the saving outweighs the cost of switching. The cost is usually a discharge fee, a new application or settlement fee, and a valuation, often a few hundred to a couple of thousand dollars. On a $500,000 loan, dropping the rate from 6.6% to 6.0% saves roughly $3,000 a year in interest, which can recover the switching cost inside the first year.
Model the before-and-after repayment in the repayment calculator to see the monthly difference at your loan size and rate.
Use your equity to add an income
The most productive refinance is not a rate switch, it is an equity release that builds something. If you have equity in your home, you can draw on it to fund a granny flat, an ancillary dwelling up to 70m2 in WA that you can rent separately. That puts a second income on a block you already own for a fraction of a second purchase.
- Release equity from your existing property at home-loan rates, not personal-loan rates.
- Build the second dwelling with a verified panel builder under a fixed price.
- Add the rental income, lifting the combined yield on the block.
- Review the structure once it is built and tenanted, splitting investment and home debt for tax clarity.
Refinance once you have handed over
A construction loan converts to a standard home loan at handover. That moment is a natural checkpoint. With a finished, valued home you often have more equity and more lender choice than at the start, so it pays to test whether your lender is still the sharpest. We can review your loan after handover and switch you if the numbers favour it.
This is general information only and does not take into account your objectives, financial situation or needs. It is not credit assistance or a credit quote. Consider whether it is right for you and seek advice. Finance is arranged through Central Lending Solutions, the licensed credit partner The Property Plug works with (Australian Credit Licence or credit representative number [TBC]).
When is it worth refinancing?
It is usually worth a look if your current rate is well above the sharpest on offer, your fixed term is ending, you want to unlock equity to build or invest, or your circumstances have changed. The saving has to clear the switching costs, and we run that comparison before you commit to anything.
What does it cost to refinance?
Typical costs include a discharge fee from your current lender, a settlement or application fee with the new lender, and a new valuation, often a few hundred to a couple of thousand dollars in total. Some lenders offer cashback or fee waivers. We weigh the total cost against the rate saving so the switch only happens if you come out ahead.
Can I refinance to build a granny flat?
Yes. If you have equity, an equity-release refinance can fund a granny flat or a renovation without a separate construction loan in many cases. Adding a second income to a block you already own is one of the strongest uses of equity, and we can model the yield before you draw the funds.
Will refinancing hurt my credit?
A refinance involves a credit enquiry, which can have a small short-term effect, but a well-timed switch that lowers your rate or consolidates debt is generally positive for your position. We only proceed when the numbers clearly favour the switch, so you are not enquiring for nothing.
Should I refinance once my build completes?
Often, yes. A construction loan converts to a standard home loan at handover, and that is a natural point to check whether your lender is still the sharpest. With a completed, valued home you may also have more equity and more lender choice than you did at the start of the build.
See if a switch puts you ahead
Book a free call. We compare your current loan against the panel and only recommend a refinance when the saving clearly beats the cost.