Refinancing can look simple on paper, but the wrong structure can cost more than it saves. Before they sign anything, borrowers should slow down and ask a refinance broker the questions that reveal fees, incentives, timelines, and real savings.
This guide is written for Australians comparing options in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, and regional areas, with questions designed to surface the details that matter.
What does a refinance broker actually do for them?
A refinance broker compares lenders, recommends a loan, and manages much of the paperwork and coordination. They should also explain why a product fits the borrower’s goals, not just what rate it advertises.
In Australia, brokers typically deal with banks, non-bank lenders, and credit unions. A good broker will translate policy rules, calculate likely repayments, and flag common traps like reverting rates, short fixed-rate cliffs, or restrictive features.
What is the real reason they are recommending this loan?
They should be able to state the reason in one sentence, then back it with numbers. If the answer is mostly vague language like “better deal” or “more competitive,” that is a warning sign.
A strong answer links the borrower’s goal to the product, such as lowering repayments, switching to an offset account, accessing equity for renovations, or consolidating debt. A refinance broker should also explain which alternatives they considered and why they were ruled out.
How much will the refinance cost upfront and over the first year?
They should list every foreseeable cost before the application goes in. That includes lender fees, discharge fees from the current lender, government charges where relevant, valuation fees, settlement fees, and any package or annual fees.
In Australia, many lenders advertise “no application fee,” but borrowers can still face discharge fees and settlement costs. A refinance broker should provide a simple table showing: upfront costs, ongoing fees, and the break-even point where the savings exceed the costs.
What rate will they actually pay, and what happens after the honeymoon period?
They should confirm the current rate, comparison rate, and whether the pricing is discounted and for how long. The key detail is what the rate reverts to, and whether that revert rate is competitive in their market.
Many loans look sharp for the first 12 to 24 months, then revert to a higher variable rate. A refinance broker should model repayments at both rates and show the difference in dollars per month. They should also explain features that affect real cost, like offset accounts, redraw rules, and repayment flexibility.
What commissions or incentives do they receive, and could that affect the advice?
They should disclose how they are paid and what conflicts they manage. In Australia, brokers are commonly paid an upfront commission and an ongoing trail commission by the lender, and the amounts can vary by product and lender.
A trustworthy refinance broker will explain their Best Interests Duty in plain English and confirm they can recommend products even if the commission is lower. Borrowers can ask for a copy of the Credit Proposal Disclosure, and they should expect clear notes on why the recommendation is suitable.
How will they assess serviceability, and what documents will they need?
They should explain how lenders calculate borrowing capacity and what could reduce it. Serviceability is not just income minus expenses; it usually includes assessment buffers, living expense benchmarks, other debts, credit card limits, and existing dependants.
A refinance broker should provide a document checklist early so there are no surprises. In Australia, that often includes recent payslips, employment details, two years of tax returns for self-employed borrowers, bank statements, current loan statements, rates notices, and identification. If they anticipate issues, they should raise them upfront.
How long will it take, and what could delay approval or settlement?
They should give a realistic timeline from application to settlement, not the best-case. The timeframe varies across lenders and can change quickly, especially during busy periods or when valuations are slow.
A refinance broker should name the common delays they see in Australia, such as missing documents, unclear transaction statements, property access issues for valuation, lender backlog, or employer verification delays. They should also explain what happens if settlement misses a fixed-rate expiry or clashes with a rate rise.
What happens if their situation changes after they apply?
They should explain what changes matter, and what the borrower should avoid until settlement. In practice, lenders can reassess an application if income changes, employment changes, or new debt is taken on.
Borrowers should ask the refinance broker what to do if they plan to change jobs, go on parental leave, take a car loan, open a new credit card, or make large one-off transfers. A good broker will give simple rules, like “pause major new credit” and “tell them before any employment change,” so the application does not fall over late.
Will refinancing still make sense if rates rise or the borrower moves sooner than planned?
They should test the plan under different scenarios, not just the current market. If the borrower might sell, upgrade, or convert the home into an investment property in the next one to three years, the structure matters.
A refinance broker should model “what if” outcomes, including a higher variable rate, a shorter holding period, and the impact of fees. If the loan has restrictions, such as limited extra repayments on a fixed rate or costly break fees, the borrower should understand the trade-offs in advance.
What features do they actually need, and which ones are just marketing?
They should match features to behaviour, not to wish lists. Offset accounts, redraw, split loans, and extra repayment flexibility can be valuable, but only if the borrower will use them consistently.
A refinance broker should help them prioritise: for example, an offset can suit someone building a cash buffer, while a clean basic variable loan may suit someone chasing simplicity and minimal fees. They should also flag lender-specific quirks, such as redraw limits, processing times, or how repayments are calculated.
Are there any policy or property issues that could make this loan harder to get?
They should identify issues early, because policy surprises waste time and trigger unnecessary credit enquiries. Some properties and borrower profiles attract stricter rules, and some lenders are simply not a fit.
In Australia, common sticking points include: apartments with small floor areas, high-density postcodes, regional properties, rural land size, unusual construction types, lending above certain LVR thresholds, or complex income like casual, commission, or contractor earnings. A refinance broker should say which lenders are comfortable and which are not.
Can they show the numbers in a simple comparison that includes fees and assumptions?
They should provide a clear comparison that is easy to sanity-check. That means assumptions are stated, fees are included, and the benefits are shown in dollars, not just percentages.
Borrowers can ask the refinance broker to provide: current loan repayments, proposed loan repayments, the total cost over 12 and 24 months, and the break-even month. If the plan relies on rate discounts or cashback offers, those should be included and clearly labelled as time-limited.
What is the borrower’s role, and how will communication work?
They should explain who does what, and when. Refinancing often involves coordination between the new lender, the current lender, the conveyancer or settlement agent, and sometimes a guarantor or co-borrower.
A refinance broker should outline how they will communicate, how often updates come, and what the borrower must do quickly, such as signing forms, supplying updated statements, or answering lender questions. Clear expectations reduce delays and prevent last-minute settlement stress.
What should they ask for before they give a final yes?
They should ask for the key disclosures and a written summary. At minimum, they should request the credit guide, proposal disclosure, a comparison that includes all fees, and a short explanation of why the recommendation meets the borrower’s goals.
They should also ask the refinance broker to confirm the loan features in writing, including offset availability, redraw rules, repayment frequency options, and any special conditions. If the broker cannot provide a clean summary, it is harder to trust the process when details get complex.
How can they spot a refinance broker who is not the right fit?
They should look for clarity, not charisma. The biggest red flags are rushed timelines, reluctance to discuss commissions, avoidance of total-cost comparisons, and answers that focus on rate alone.
A capable refinance broker will ask thoughtful questions about goals, future plans, risk tolerance, and spending patterns, then document the reasoning. If they pressure the borrower to apply immediately, dismiss questions as “standard,” or cannot explain the downsides of the recommended loan, it is sensible to pause.
What is a sensible next step after these questions?
They should request a written options summary and take a day to review it. Refinancing is a financial decision with long tail effects, so stepping back often improves the outcome.
If they want to proceed, they can ask the refinance broker to confirm the application checklist, timeline, and the exact figures used in the comparison. The aim is simple: fewer surprises, clearer trade-offs, and a refinance that holds up in the real world.
More to Read : What Does a Refinance Mortgage Broker Actually Do for Borrowers?
