Where an existing home loan is paid out by another lender, and that other lender takes over the loan. You can refinance by arranging for another lender to pay out your existing home loan. You may also be able to borrow extra money from the new lender. You always have the right to terminate your home loan, either by paying it out early or by refinancing with another lender. You should work out whether you will save any money after you have paid the costs involved in refinancing.