How Often Can (or Should) You Refinance Your Home Loan?

There’s no rule that limits how often you can refinance your home loan in Australia. If a lender is willing to approve you, you can technically refinance as often as you like. But just because you can, doesn’t always mean you should.

Let’s unpack how often you can refinance, how often it makes sense to do so, and when it’s better to hold off.

How Often Can You Refinance?

Legally, there’s no minimum time frame between refinances. If you took out a loan last year, last month, or even last week, you could refinance again—provided you meet the new lender’s criteria.

Some borrowers do refinance twice in a short space of time. It might be to remove a guarantor, then again to access equity, or to secure a better rate once their financial profile improves.

That said, lenders can see how often you’ve applied for credit. If it looks like you’re jumping from one loan to the next, it may raise red flags, especially if there’s no clear reason. And while there’s no limit for borrowers, mortgage brokers can face clawbacks on their commissions if a client refinances too quickly. This doesn’t affect your eligibility, but it might explain why some brokers won’t encourage frequent switching.

What Can Limit How Often You Refinance?

Refinancing is more than just a rate comparison. Each time you switch, you take on new costs and commitments. That means timing matters.

Here’s why refinancing too often can work against you:

1. Costs add up.
   Discharge fees, application fees, and government charges apply with most refinances. These can easily run into hundreds of dollars. If you keep refinancing without staying long enough to recover those costs, you could end up worse off.
2. Your credit score can take a hit.
   Each loan application triggers a credit inquiry. One or two won’t do much damage, but multiple enquiries in a short span can lower your score temporarily. That might make your next refinance harder—or more expensive.
3. It takes time and energy.
   Even if your broker does the legwork, refinancing isn’t a set-and-forget task. You’ll still need to gather documents, review your options, and sign off on everything. Most people don’t want to do this more than they need to.
4. Cashback conditions may apply.
   If you’ve received a cashback offer as part of a refinance, check the fine print. Some lenders expect you to keep the loan for 12 months or more, and clawbacks can apply if you leave early.

How Often Should You Refinance?

Most brokers recommend reviewing your home loan once a year. That doesn’t mean refinancing annually. It just means checking your rate and asking if you could be doing better.

If your interest rate is noticeably higher than the rates being offered to new borrowers—say, more than 0.25%—it’s worth investigating. Sometimes your current lender will lower your rate to keep your business. Other times, refinancing may be the better option.

In a rising rate environment, the benefits of switching may be limited. But when rates fall—or if you’ve built up equity or improved your credit score, it can be a good time to reassess.

A good general rule: many borrowers refinance every two to three years. That’s often when the original discount has worn off, and the market has moved enough to open up new opportunities.

Situations Where More Frequent Refinancing Makes Sense

There are exceptions where refinancing sooner might be worthwhile:

• You took a higher-rate loan initially due to low equity or credit challenges, and your profile has now improved.
• You want to access equity for renovations or investment.
• You’ve moved from a fixed to a variable rate and now want to lock in a better deal again.
• Your lender hasn’t passed on recent rate cuts, and better offers are available elsewhere.

In these cases, refinancing again – even if it’s only been a year or so – might still put you ahead.

Is It Possible to Refinance Too Often?

Yes, if you’re doing it for marginal gains or without a clear reason. There are diminishing returns once you factor in the time, cost, and potential strain on your credit report.

Some lenders may be wary if you’ve switched multiple times in quick succession. It suggests you may not be a long-term customer. While that won’t automatically lead to rejection, it can influence how your application is viewed.

The Smart Approach: Review Regularly, Refinance Strategically

Here’s a practical rhythm:

• Review your loan once a year.
• Compare your rate to what’s on offer in the market.
• If you’re still on a competitive deal, leave it.
• If not, ask your current lender to match what others are offering.
• If they say no, consider refinancing.

You don’t need to chase every rate drop. You only need to act when the savings are clear and the numbers stack up.

The Bottom Line

You can refinance as often as you’re approved. But you should only do it when there’s a clear benefit. For most people, that means reviewing your loan yearly and refinancing every couple of years as needed.

Focus on outcomes, not activity. There’s no prize for most refinances—only for saving the most over time.

Let the market move, let your equity grow, and when the timing is right, make your move. Just make sure it’s worth it.