It's a second or subsequent loan on a property, taken out because the first loan is about to expire or because the loan agreement will be voluntarily terminated before expiry. A common reason for borrowers to seek refinancing is because one or more features of their current loan – such as the interest rate, loan amount, fees, or other features – may no longer suit them. Put simply, it’s a way of switching your home loan to another lender, or in some cases renegotiating with your current lender, to get a better deal.