Your fixed rate is about to end and the new rate looks nothing like what you locked in three years ago.
Most paediatric nurses we work with refinance in one of three situations: their fixed term has expired and they're rolling onto a higher variable rate, they've been in the same loan for more than two years without a review, or they need to access equity for a deposit on their next property. Timing matters because refinancing too early can trigger break costs, while waiting too long means you're paying more than you need to on a loan that no longer fits your circumstances.
Coming Off a Fixed Rate Period
Refinancing makes sense when your fixed term ends and your loan reverts to a variable rate that sits well above what's currently available. You'll receive a letter from your lender around 30 to 90 days before your fixed period expires, showing the rate you'll move to. At that point, you have three options: stay with your current lender on their standard variable rate, negotiate a retention offer, or refinance to a new lender.
Consider a paediatric nurse finishing a three-year fixed term that's rolling from 2.1% to a revert rate of 6.8%. Refinancing to a new lender at 6.1% would reduce monthly repayments and could also provide access to features like an offset account or redraw facility that weren't included in the original fixed loan. The application process typically takes three to four weeks, so starting the conversation 60 days before expiry gives you time to compare options without being forced onto the revert rate. If you're approaching the end of a fixed term, a loan health check will show you what's available and whether refinancing delivers a tangible benefit.
Accessing Equity for Your Next Property
Refinancing to release equity makes sense when you're buying an investment property or upgrading your home and need a deposit without selling your current property. You'll need at least 20% equity in your existing property after the refinance to avoid paying lenders mortgage insurance on the new borrowing, though some lenders offer LMI waivers for nurses that can reduce that threshold.
In a scenario where a paediatric nurse owns a property now valued at $750,000 with $400,000 remaining on the loan, refinancing could release up to $200,000 in usable equity while keeping the loan-to-value ratio at 80%. That equity can then fund a deposit on an investment property or cover the gap when upgrading to a larger home. The refinance application will include a property valuation, and the equity available depends on how the lender assesses current market conditions in your area. If you're planning to expand your portfolio or move to a bigger property within the next six to twelve months, starting the refinance process before you find the next property means you'll have pre-approval in place and know exactly how much you can access.
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Loan Structure No Longer Fits Your Situation
Refinancing makes sense when your income has changed, your household expenses have shifted, or you've moved from full-time to part-time hours and need to restructure your repayments. Paediatric nurses often move between permanent roles, agency work, or reduced hours when starting a family, and the loan structure that worked three years ago may no longer align with your current cashflow.
If you're now earning a higher base salary and want to increase repayments without penalty, or if you've moved to casual hours and need the option to pause extra repayments, refinancing to a loan with an offset account and flexible repayment terms can provide that control. Some lenders will also consolidate other debts into the mortgage during a refinance, which can improve cashflow if you're carrying a car loan or credit card balance at a higher rate. The application will reassess your income and expenses, so you'll need recent payslips, tax returns if you're doing agency work, and a clear picture of your current financial position. If your circumstances have shifted in the past two years and your loan no longer supports how you're working or living, refinancing can realign your structure without waiting for a fixed term to end.
When Refinancing Doesn't Make Sense
Refinancing isn't useful if you're still within a fixed term and the break costs outweigh the interest savings, or if you're planning to sell the property within the next twelve months. Break costs are calculated based on the difference between your fixed rate and the current wholesale rate, multiplied by the time remaining on your fixed term. In most cases, breaking a fixed loan early will cost more than you'd save by refinancing, unless rates have increased significantly since you locked in.
Refinancing also doesn't make sense if your loan is already on a variable rate that sits within 0.2% to 0.3% of the current market and you're not looking to change features or access equity. The application process involves a property valuation, document collection, and settlement costs, and if the only benefit is a marginal rate reduction, the effort and expense may not deliver a return. If you're unsure whether your current rate is still suitable, a review of your existing loan against what's available will show whether refinancing delivers a measurable outcome or whether staying put makes more sense. For paediatric nurses working in public hospitals with stable income, a regular home loan health check every two years ensures you're not overpaying without needing to refinance every time rates shift.
Fixed Rate Expiry and What Happens Next
When your fixed term ends, your loan automatically moves to your lender's standard variable rate unless you take action. That revert rate is typically higher than what new customers are offered, and in some cases, it can sit 0.5% to 1.0% above what's available elsewhere. You'll receive a letter outlining your options, but your lender isn't required to offer you their lowest rate, and retention offers are often still higher than what you'd access by refinancing to a new lender.
If you're within 90 days of your fixed term ending, starting a refinance application now means you can settle the new loan on or shortly after your fixed period expires, avoiding any break costs and ensuring you don't spend time on the revert rate. The process involves a property valuation, income verification, and a credit check, and most refinances settle within three to four weeks once the application is submitted. If you're coming off a fixed rate and haven't reviewed your options, the difference between your revert rate and what's available elsewhere is often enough to justify the refinance on its own. You can read more about what to expect in our guide to fixed rate expiry.
Call one of our team or book an appointment at a time that works for you. We'll review your current loan, show you what's available, and walk you through whether refinancing delivers a tangible benefit or whether your existing loan still fits your situation.
Frequently Asked Questions
When should I refinance my home loan?
Refinance when your fixed term ends and you're rolling onto a higher variable rate, when you've been in the same loan for more than two years without a review, or when you need to access equity for your next property. Timing matters because refinancing too early can trigger break costs, while waiting too long means you're paying more than necessary.
Can I refinance before my fixed rate period ends?
You can refinance during a fixed term, but break costs are usually calculated based on the difference between your fixed rate and the current wholesale rate, multiplied by the time remaining. In most cases, break costs will outweigh the interest savings unless rates have increased significantly since you locked in.
How much equity do I need to access through refinancing?
You'll typically need at least 20% equity remaining in your property after the refinance to avoid paying lenders mortgage insurance on the new borrowing. Some lenders offer LMI waivers for nurses, which can reduce that threshold and allow you to access more equity without additional insurance costs.
How long does the refinance process take?
Most refinances settle within three to four weeks once the application is submitted, though this depends on how quickly you provide documents and how long the property valuation takes. Starting the process 60 days before your fixed term expires gives you time to compare options without being forced onto a revert rate.
What happens if I don't refinance when my fixed rate ends?
Your loan automatically moves to your lender's standard variable rate, which is typically higher than what new customers are offered. That revert rate can sit 0.5% to 1.0% above what's available elsewhere, and your lender isn't required to offer you their lowest rate unless you negotiate.
