Should you refinance or leave the loan alone?
Use the existing asset intelligently.
Best for: Investors whose loan has not been reviewed recently or whose rate, fees or circumstances have changed
A lower advertised interest rate does not automatically mean refinancing will leave you better off. The right comparison is the whole loan, not just the headline rate.
Why this matters
Refinancing may reduce interest or improve flexibility. But it may also introduce establishment costs, discharge fees, valuation costs, different loan features, a reset loan term, a changed repayment structure and additional borrowing temptation. Sometimes the best result is a better rate from the existing lender without refinancing at all.
POTENTIAL IMPACT
Even a modest difference in rate can matter on a large loan. But the benefit should be measured after all costs and structural changes.
What to check
- Current interest rate
- Current loan balance
- Remaining loan term
- Fixed or variable status
- Offset account
- Redraw arrangements
- Annual package fees
- Discharge fees
- New lender establishment costs
- New repayment
- Total interest implications
- Whether the new loan term is being extended
Who can help
Mortgage broker
Compare the existing facility against alternative products.
Existing lender
Ask for a pricing review before moving.
Accountant
Where loan structure or use of borrowed funds creates tax questions.
TAKE ACTION · EMAIL TEMPLATE
Copy message
Start with the existing lender or broker.
USE AI TO HELP
Use AI to compare the whole loan — not just the headline rate — before the broker conversation.
Best prompt for this issue
Compare my current investment loan with this proposed refinance. Consider interest rate, loan balance, monthly repayment, fees, offset features, remaining term and proposed new term. Show the differences clearly. Do not recommend a lender or tell me whether to refinance. Identify the questions I should take back to my mortgage broker.
Quick modes
WHAT TO PROVIDE
- current loan details (rate, balance, term, fees, features)
- the proposed refinance offer
- monthly repayments for both
ASK AI TO GIVE YOU
- a side-by-side comparison
- the real saving after fees
- term and feature changes to note
- questions for your broker
Privacy: do not paste passwords, tax file numbers, bank account details or other sensitive personal information into an AI tool. If a document contains personal details it doesn't need, redact them before uploading.
What happens next
If refinancing produces a genuine improvement, you can investigate it further. If not, ask whether your current lender will improve the existing rate without changing the loan.
Important considerations
- The lowest rate is not always the best overall facility. Lending suitability depends on individual circumstances.
- This is general information, not personal financial or legal advice. Confirm specifics with your own adviser before acting.
THE HOLD QUESTION
Are you improving the loan, or simply moving the same debt somewhere else?
NOT SURE WHAT TO ASK AI?
Ask a Better Property Question
Most people don't need more AI — they need to ask AI better questions. Type your question (or skip it) and copy a prompt that makes any AI tool ask you the right things first.
I am trying to understand this property issue. Before answering, identify any important information that is missing. Ask me only the questions that materially affect the answer. Once I respond, explain the issue in plain English, separate facts from assumptions, identify the main risks and give me the next three actions. Flag anything that should be confirmed with a qualified professional.
Privacy: do not paste passwords, tax file numbers, bank account details or other sensitive personal information into an AI tool. If a document contains personal details it doesn't need, redact them before uploading. This is a way to prepare — not financial, tax or legal advice.
Not sure what else to review?
Run the Annual HOLD CheckThe Kilroy Brief
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