Refinancing in Melbourne: what you need to know in 2025
Melbourne homeowners carry an average mortgage balance of around $720,000 — Australia's second highest after Sydney. The city's prolonged property cycle (periods of strong growth followed by the 2022–2023 correction) means many Melbourne borrowers find themselves with both improved equity positions and urgency to reduce mortgage costs after several years of elevated rates.
Melbourne's diverse property market — from inner-city apartments near the CBD to bayside family homes in Brighton and Sandringham, through to growth corridor properties in Cranbourne and Melton — creates a wide range of refinancing situations. Investment property owners are particularly active in the Melbourne refinance market, as improving rental yields make loan restructuring financially compelling.
Is now a good time to refinance in Melbourne?
Melbourne borrowers who took out loans between 2020–2022 and haven't switched since are the most likely to find significant savings. The typical Melbourne borrower on a variable rate has been paying rates 0.6–1.0% above what's now available on the open market. On a $720,000 loan, that's $360–$600/month left on the table. With Melbourne property values recovering through 2025, many borrowers who were previously nervous about valuations are finding their equity position is stronger than expected.
Melbourne property market snapshot
| Median house price (Melbourne metro) | $1,050,000 |
| Median unit/apartment price | $620,000 |
| Median new mortgage balance | $718,000 |
| Average existing variable rate | ~6.55% p.a. |
| Our best variable rate (from) | 5.69% p.a. |
| Average monthly saving (our clients) | $580 |
Sources: CoreLogic, ABS, RBA. Rates as at June 2025.
Melbourne suburbs we serve
We service all of Greater Melbourne including: South Yarra, Toorak, Brighton, St Kilda, Richmond, Fitzroy, Carlton, Northcote, Brunswick, Essendon, Moonee Ponds, Hawthorn, Camberwell, Box Hill, Glen Waverley, Doncaster, Ringwood, Frankston, Dandenong, Cranbourne, Werribee, Melton, Sunbury, and all suburbs in between.
Melbourne apartment refinancing
Melbourne has Australia's largest stock of inner-city apartments, and refinancing them comes with specific considerations. Some lenders apply stricter LVR caps on apartments (particularly studios and one-bedrooms under 50sqm), and certain postcodes in the CBD are treated as higher risk by some lenders. Our broker panel includes lenders who are actively competitive on Melbourne apartment finance — we know which ones to approach for your specific property type and suburb.
Documents you'll need
- Income: Last 2 payslips or 2 years' tax returns (self-employed)
- Property: Current council rates notice showing owner's name and property details
- Existing loan: Most recent mortgage statement showing balance, rate, and lender
- ID: Driver's licence or passport
- Bank statements: 3 months showing income deposits and expense patterns