Refinancing That Starts With
Whether You Should

The Question Most Brokers Skip

Most refinancing conversations start with "let me find you a better rate." CraftWise starts with a different question: will switching actually save you money after all costs are accounted for?

A lower headline rate means nothing if the legal fees, valuation costs, and clawback penalties eat the savings. A better-looking package means nothing if it locks you into a structure that doesn't fit your next three years. Refinancing is a financial decision, not a rate-shopping exercise — and the answer is sometimes "stay where you are."

We'll tell you that when it's true. A broker who only makes money by moving you has a structural incentive to recommend switching even when staying is better. CraftWise earns the same either way — which is why our advice can be honest about this.

When Refinancing Genuinely Makes Sense

Your lock-in period has expired. Most loans reprice to a higher rate after the lock-in ends. If you've rolled onto a bank's board rate or an uncompetitive repriced rate, switching can deliver immediate savings — often significant.

Interest rates have moved materially since you borrowed. If market rates have dropped since you took your loan and your lock-in has expired, refinancing captures the new environment.

Your financial situation has improved. A stronger income profile, better credit record, or increased property value can qualify you for better terms than you could access when you first borrowed.

Your current structure doesn't fit anymore. Maybe you're on a floating rate and want certainty. Maybe your business has changed and you need to restructure repayment terms. Maybe you're consolidating multiple facilities into one. These are structural refinances — not rate chasing — and they can be valuable even when the rate doesn't change much.

When Refinancing Doesn't Make Sense

You're still in your lock-in period. Breaking a lock-in usually triggers a penalty of 1–1.5% of the outstanding balance. Unless the rate improvement is dramatic and the remaining tenure long, the penalty wipes out the savings.

The rate difference is marginal. Switching from 3.2% to 3.0% on a $500,000 loan saves about $1,000 per year before costs. After legal fees ($2,000–3,000) and valuation ($300–500), breakeven takes 2–3 years. If the new lock-in is only 2 years, you may barely break even before the cycle repeats.

You're planning to sell within 1–2 years. The transaction costs of refinancing won't be recovered if you're exiting the property soon.

The True Cost Calculation

CraftWise doesn't compare headline rates. We calculate the total cost of refinancing — the number that actually determines whether you come out ahead:

Savings: the monthly repayment difference multiplied by the lock-in period, plus any reduction in total interest over the remaining tenure.

Costs: legal fees (conveyancing for the new mortgage), valuation fees, any penalty or clawback on the existing loan, and the administrative cost of your time.

Net benefit: savings minus costs. If this number is negative or marginal, we'll say so. If it's clearly positive, we'll show you the options and handle the switch.

What CraftWise Covers

Mortgage refinancing: residential and investment property loans. We compare packages across major banks, calculate the true breakeven, and handle the application process if switching makes sense.

Business loan refinancing: SME term loans, working capital facilities, and property-backed business loans. We review your existing terms, assess whether better options exist across banks, alternative lenders, and private credit, and restructure if the numbers justify it.

Debt restructuring: consolidating multiple facilities into a simpler, cheaper structure. This is particularly relevant for business owners juggling several loans across different lenders with different repayment schedules.

For a full picture of how we're paid — and why our refinancing advice isn't driven by a need to move you — see our fee transparency page.