Couple thinking about refinancing their home loan
Couple thinking about refinancing their home loan

Refinancing: Unlock the power of your home loan

Check your borrowing power, get a rate estimate, or even apply online, it’s quick and  easy.

28 June 2024
28 June 2024

Big dreams? Refinancing could help you get there

Refinancing can help reshape your financial situation so you can do the things that matter to you sooner. Bank said no? We specialise in providing flexible financial loan options that could factor in the ups and downs of real life, so talk to us.

What does it mean to refinance? Home loan refinancing is when you take out a new loan to pay off your current mortgage, this could be with your existing lender or through a different lender. When you refinance, your current home loan is paid out by the new loan, and you then make repayments towards the new loan. 

Why do people refinance?

Refinancing to a lower interest rate may reduce your monthly mortgage repayments, although the overall amount you pay will vary depending on the new term of the loan. Likewise, it could help you to consolidate debts or bring multiple mortgages together with one lender so you can streamline your financial commitments. What’s more, even if you’ve had a few issues on your credit score, you may still be able to refinance your home loan.

If you’ve been paying off your home loan for several years already, you may take advantage of your home's current value to access cash. Equity (the market value of your property minus what you owe on your mortgage) could be used for cash-out, allowing you to pay for the kids’ education, buy a boat, make renovations that can increase your home's property value, or even buy an investment property.

Why Pepper Money?

We're fast: Home loan decision within 2 business days
                     (once documents submitted)

We're flexible: Multiple loan options, if we can help, we will 

We're accessible: We’re here to talk through your situation 


Pepper Money refinancing trio
  • Flexible cash out options
  • Borrow up to 90% of the property value 
  • Deal directly with a decision-maker 
  • No limit on the number of debts to be consolidated 
  • We look beyond just your credit score 
  • Additional income sources considered 


See what your repayments~ might look like

Whatever stage of the home loan journey you’re at, we could help

Talk to a real person about my options

If you’d like to have a chat about your home loan options – simply enquire online and we’ll aim to get in touch within 1 business day. 

Get my indicative interest rate

In less than 5 minutes, find out your indicative interest rate and estimated repayments˅ – without impacting your credit score.

Calculate my borrowing power

Work out how much you may be able to borrow with us. We’ll look at your income and expenses to work out your rough borrowing estimate.

Whatever stage of the home loan journey you’re at, we’re here to help

Talk to a real person about my options
Get my indicative interest rate
Calculate my borrowing power



Refinancing options that work for you

Variable Rates

Variable interest rate home loans start from

6.84% p.a.  variable rate*1

7.02% p.a. comparison rate^1

Submit an application by 15 August 2024 to take advantage of our variable interest rate promotion on select Loan to Value Ratios (LVRs)1. Plus, benefit from our:

  • Visa debit card+
  • 100% interest offset sub-account (fees apply)
  • Free online redraw

Fixed Rates

2-year fixed interest rate home loans start from

6.84% p.a.  2-year fixed rate*2

7.02% p.a. comparison rate^2

Until 15 August 2024, you can fix today’s variable interest rate for 2, 3 or 5 years with no break costs2

  • 2, 3, 5, 7 and 10-year loan terms
  • No break costs or early repayment fees
  • Unlimited extra repayments



Let's crunch the numbers

Our calculators are here to help you plan your home loan journey. From working out stamp duty to helping reach your savings targets. 

Borrowing power calculator

Borrowing Power

Work out how much you may be able to borrow with us, based on your income and expenses. 
Stamp duty calculator

Stamp Duty

Work out how much stamp duty you may need to pay in each state or territory across Australia.
Mortgage repayment calculator

Mortgage Repayments

Work out your mortgage repayments and interest payable over the life of the loan.
Savings and term deposit calculator

Savings Goals

Find out how much you could save with a savings account or term deposit.



How does home loan refinancing work?

Here's what other home loan refinancers often ask us. If you're still stuck for help, then why not check out all of our home loan FAQs.

What could refinancing do for me?

Depending on your situation, refinancing could help you save money through a lower interest rate or by saving on overhead fees charged by other lenders. Refinancing can also be a strategy used to free up the equity you have in your home. That means tapping into what you own as value in the property to do other things, like realise your property investment goals, renovate the house, or even buy a boat or caravan – it could give you lots of options.

Refinancing your home loan may allow you to switch between a variable and a fixed rate home loan. With a fixed rate loan, your payment amount stays the same for a set period, regardless of market changes – so you can rely on the amount you have budgeted for loan repayments. Or you may decide to take advantage of lower interest rates that may come with variable rate mortgages along with the risk that rates may rise in future.

If you’re keen to learn more about ways we’ve helped lots of Aussies refinance, check out our Simple Guide to Refinancing.

What’s a flexible credit assessment?

We don’t just look at the boxes on your home loan application. We make the effort to get to know you – the person completing the application. We ask the questions that matter so we can understand the reasons behind any issues on your credit report, which allows us to make an informed decision and work out an interest rate based on your situation. The loan amount is worked out using a range of factors (including your property goals, income and financial details), while ensuring your requirements and objectives are met.

It’s this flexible approach that helps more Aussies achieve their dreams of buying their new home with us. 

There is no set timeframe you need to wait until you can refinance your home loan, however you should consider the following when evaluating if it’s the right time to refinance your loan:

  • Why do you want to refinance? Is there a product you’ve seen that you think might better suit your situation, or have interest rates drastically changed? Has your financial situation changed? What fees might you need to outlay to refinance, and do they outweigh the benefits?  
  • Read the terms of your current loans carefully (including break costs, interest rates, comparison rates, etc.) and weigh these up against the features of any refinance options you’re considering, including the loan term. Will your objectives be met?

If you're looking to refinance, you may be wondering if it will affect your credit score. It’s possible that your credit score may drop down initially after refinancing, but this may just last for a short period of time. In fact, your credit score has a chance to rebound and even improve in the longer term, especially if you pay your new monthly repayments on time.

There are several factors that can impact your credit score, including when a credit provider obtains a copy of your report during your credit application. Whilst each of the Australian credit reporting bodies calculate credit scores differently, making multiple applications within a short space of time can negatively affect your credit score. Find out more in our quick guide to understanding your credit report.

If you have a below-average credit score, then refinancing could still be an option for you. However, you may need to look to alternative lenders that take a holistic view of your financial situation. Non-bank lenders like us at Pepper Money specialise in providing loan options for people with credit history issues, and we can help you explore your options.

Even if you have a bad credit rating or a limited credit history, we may be able to help you reduce your interest rate and combine all your existing debts together into one easy to manage payment. It’s important to understand what factors have impacted your credit score in the past and ensure that you have a plan in-place to sort these issues out. Check out our tips on understanding your credit score.

To know the full costs, you need to look at the terms and conditions of each product – then you can compare them. So, the loan you currently have, compared to the one you’re considering refinancing to. Make sure you understand the fees and charges to both discharge an existing loan and to get a new mortgage, as they will differ from lender to lender and product to product. It’s important to also understand the terms and conditions, including any fees, applicable where you’re considering refinancing with your current lender to a different product. Before making any decisions, read the fine print to make sure your refinancing benefit isn’t being eaten up by fees or break costs.

Break costs or exit fees are additional costs that can be charged to a borrower when they switch home loans to a different lender or refinance with their existing lender. These fees are there to make sure that lenders are financially protected and can cover any costs if a loan is refinanced or switched to another lender during a fixed interest rate period. Different lenders may use different methods to calculate break costs, however it usually depends on how much of a locked-in rate period is remaining, how much of the loan amount has been paid off and the difference in cost of funds.

At Pepper Money, our fixed rate offering comes with no break costs, meaning you can gain the certainty of locking in your repayments for a set period of time, and should rates decrease in the future, you can refinance, or ‘break’ the loan during the fixed rate period without any penalties. 

When you refinance your home loan you go through the process of getting a new loan to replace an existing mortgage – this could be with the same lender through moving to a different product or switching to a new mortgage with a different lender. People do this for lots of reasons, some may refinance their home loan to take advantage of a lower interest rate, others might do so to lower monthly payments or to consolidate their debts. Refinancing can also be used to access any equity built up in a property.

To learn how to refinance a home loan, read our Simple Guide to Refinancing.

To apply for a home loan, you’ll need to provide documents to verify your identity, employment, and financial position. 

To prove your identity:

  • Australian passport


  • International passport showing a valid Australian permanent residency visa

To prove your deposit, you’ll need to provide the following (depending on where the funds originated from):

  • 3 months’ bank statements demonstrating genuine savings 
  • Share certificate or dividend statement for any public listed company
  • Gift letters for non-repayable gifts from family
  • Contract of sale or settlement statement for proceeds of a sale of another property

To prove your income:

For PAYG applicants you’ll need two recent payslips plus one of the following: 

• Most recent group certificate  
• Most recent notice of assessment  
• Current letter of employment 
• Bank statements - to confirm your last 3 months of salary 

For Self-Employed applicants, the required documents vary depending on how long you’ve been self-employed.

At least 6 months:

You’ll need to be able to show at least 6 months of GST and ABN registration and provide declaration of financial position, as well as one of the following: 6 months’ business bank statements, or 6 months’ BAS or Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).

Over 2 years:

Last 2 years’ tax returns and notices of assessments, or

Last 2 years’ financial statements executed by a registered tax agent or accountant

When refinancing your home loan with us, we can finance up to 90% of the property’s value. This means you’ll need to maintain at least 10% equity or contribute an equivalent deposit to your loan.

Remember, you’ll also need funds to be able to cover any loan fees, as well as government and legal fees. These can’t be added to your home loan balance.

The interest rate offered, and fees and charges will depend on our assessment of a number of factors at the time of application including:

  • The amount of your deposit or existing equity (if refinancing)
  • Nature of the security property (or the property you have equity in if refinancing)
  • Loan to value ratio (LVR)
  • Your income
  • Credit history
  • Any assets you own
  • Any liabilities or credit obligations
  • Chosen repayment type – paying off interest-only, or principal and interest
  • The purpose of the loan – if it’s for an owner-occupier or investment property

To get an indicative interest rateˇ, you can start by using our online borrowing power calculator, or speak to one of our Lending Specialists on 137 377.

You can consolidate a number of debts into your home loan – so long as the consolidation puts you in a better financial position. We can look to consolidate different types of debt into your new home loan, including credit cards, personal loans, car loans, private finance, tax and other personal or business debts. Before you get carried away consolidating all outstanding debts into your loan, check the features and limits of the loan product you’re looking at – as some competitive interest rate products may have limits on the number of debts that can be consolidated.

Debt consolidation involves taking out a single loan to consolidate multiple debts, such as credit card debts, student loans, and other outstanding loans. It’s an option that could help you better manage your debts. By consolidating multiple debts into one loan, you can benefit from lower monthly payments, reduced, or eliminated late fees, and the convenience of having just one loan to manage. 

Consolidation loans are available from both banks and non-bank lenders, each will have different terms and conditions. Deciding the right lender for the right borrower will depend on their individual circumstances. It’s important to compare the costs and benefits of each loan provider and choose one that meets your needs.

Debt consolidation works by bringing all your existing debts together and rolling them into a single loan account, often with lower monthly repayments. But when considering debt consolidation, it’s important to understand the details of how it will work out for you and your situation.   

Consolidating your debts can lead to a lower interest rate than your existing individual debts, resulting in savings over the life of the loan. Ideally the debt consolidation loan will have lower monthly repayments than the amount being paid on the total debts currently owed. 

If you have equity in your home loan, you might be able to leverage it to consolidate other debts into your loan.  

One benefit of consolidating non-property debt into a home loan is that you can often get a lower interest rate. Because you will be putting your home up as collateral, lenders will usually offer lower interest rates than they would on other types of loans.

If you are looking to refinance your loan in Australia, you may need to pay stamp duty. This is generally a one-off fee charged by a State or Territory government on certain types of transactions. It is important to check with the relevant State or Territory Stamp Duty Office if stamp duty applies in your particular situation.

Refinancing a home loan with us is straightforward. You can apply online and complete the process in less than 20 minutes if you are an eligible customer with PAYG Income. Best yet, you’ll get your indicative interest rateˇ before you apply without impacting your credit score.    

If you're self-employed or just prefer to speak to one of our friendly Lending Specialists, then submit an online enquiry or call our team on 137 377. 

Our Product Reviews

Family celebrating in their new home

What our customers think about us


from 1,275 reviews

Excellent Experience

The Pepper Money team were wonderful during the process of refinancing my home loan. Everything was discussed clearly, it all went so smoothly and couldn’t have been happier. I highly recommend Pepper! Thank you all so much.

Nicole, Victoria - Refinancing
Very easy to deal with

The customer service was perfect. No request was too hard. I’m very satisfied.

Mark, Tasmania - Refinancing
Request for information

My question was answered quickly, and I was provided the information promptly. The staff were very knowledgeable and friendly too.

Karen - Refinancing
Great alternative to the big banks

An absolute pleasure to deal with. My situation was not straight forward and I’m grateful there is alternative to the bank. I was guided and updated throughout the process and have successfully refinanced with Pepper Money. Great service!

Leisa, Queensland - Refinancing
Excellent customer service

We recently refinanced through Pepper and are really happy. The process was made simple. Thank you.

Kathleen, Adelaide - Refinancing
How easy

All done online which makes it so easy. 5 stars Pepper Money. I’ll be back.

Lynette - Refinancing

The important legal bits

Information and interest rates are correct as of 8 April 2024 and subject to change at any time. 

Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. Promotions are subject to change and may be varied or withdrawn at any time. Applications submitted after the Promotion period will be offered the current interest rates then applicable. 

*Our interest rates:

       Pepper Money variable interest rates range from 6.84%p.a. - 12.19% p.a. (Comparison rates range from 7.02%p.a. - 12.34%p.a.^)

        View all variable rates »

       Pepper Money 2-year fixed interest rates range from 6.84%p.a. - 12.19%p.a (Comparison rates range from 7.02%p.a. - 12.27%p.a.^). 

       View all fixed rates »

      The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.

^Comparison rate is calculated on a secured loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. 

1Variable interest rate promotion (Promotion) applies to select LVRs for new home loan applications submitted between 12:00 am AEST 8 April 2024 and 11:59 pm AEST 15 August 2024.

2Pepper Money’s fixed interest rate promotion is only available for new home loan applications not previously submitted. Applications must be submitted between 12:00 am AEST 8 April 2024 until 11:59 pm AEST 15 August 2024. To lock in the interest rate at Final Approval, a fixed rate authority lock form must be submitted (fees apply#).  

#There is a non-refundable, minimum fee of $750 per home loan application payable at settlement to lock in a fixed interest rate for 90 days. For home loan balances greater than $500,000, the rate lock fee is 0.15% of the fixed interest rate loan balance at settlement. For example, for a fixed rate loan amount of $600,000 the rate lock fee will be $600,000 x 0.15% = $900. The lesser of the fixed interest rate at settlement or the applicable locked in fixed interest rate will be applied at settlement. The rate lock fee will be charged at settlement even if interest rates decrease after the rate lock request has been approved.

˅An indicative interest rate and estimated repayments is not a formal approval for a loan and financial commitments must not be entered into based on it. It is not a suggestion or recommendation of any particular loan product. It is a guide only based on the limited information provided and the credit score obtained. The actual interest rate and fees will depend on the borrower’s circumstances and the information verified during the loan application assessment.

~The results of the home loan repayment calculator are based on information you have provided in the calculator including a selected interest rate, loan term and loan amount and is to be used as a guide only. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated home loan repayments is based on the assumption that interest rates remain constant for the chosen loan term. The output of the calculator is subject to the assumptions in the calculator (see 'about this calculator') and subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. Your interest rate, repayments and interest payable will be different when you complete a full application and we capture all details relevant to our responsible lending assessment. The results of this calculator does not take into account loan setup or establishment or monthly administration fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widget Works.

+Visa Debit card is issued by Indue Limited ABN 97 087 822 464 and distributed by Pepper Finance Corporation Limited ACN 094 317 647 and/or through Pepper Money accredited mortgage brokers. Refer to the Conditions of Use and Target Market Determination (TMD).

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