Refinancing in Frankston: what you need to know in 2025
Frankston has undergone a significant transformation over the past decade — from Melbourne's most overlooked bayside suburb into one of its most in-demand growth corridors. The combination of genuine beach access, improving amenity (Frankston's revitalised foreshore and arts precinct), and relative affordability compared to Brighton and Bayside has driven consistent demand from both owner-occupiers and investors. Property values have grown substantially, and many Frankston owners now find themselves with significantly better equity positions than when they purchased.
The Frankston and northern Mornington Peninsula mortgage market is primarily owner-occupier driven — families who have chosen the coastal lifestyle over inner-city density, often with both partners employed across a range of industries including healthcare (Frankston Hospital is a major employer), retail, and trades. This is a strong borrower profile for most lenders, and competition for this segment has increased as the area has gentrified.
Is now a good time to refinance in Frankston?
Frankston borrowers who purchased before 2020 have seen their equity positions improve substantially, with many now sitting at LVRs of 50–65% — qualifying for the best rate tiers. Even those who purchased during the 2020–2022 surge have generally maintained their equity position as the market has held. The current gap between existing variable rates and market-best rates translates to meaningful monthly savings — on a $480,000 Frankston loan, approximately $300–$380/month depending on the rate gap.
Frankston property market snapshot
| Median house price | $680,000 |
| Median unit / apartment | $440,000 |
| Typical mortgage balance | $380,000–$580,000 |
| Average existing variable rate | ~6.5% p.a. |
| Our best variable rate (from) | 5.69% p.a. |
| Average monthly saving (our clients) | $320 |
Sources: CoreLogic, ABS, RBA. Rates as at June 2025. Indicative only.
Mornington Peninsula coastal and holiday properties
The broader Frankston and Mornington Peninsula catchment includes a significant number of holiday and coastal lifestyle properties — from weekenders in Mornington and Mount Martha to permanent coastal homes in Rye, Blairgowrie, and Sorrento. Coastal peninsula properties are well-regarded by most lenders as the market is deep and well-understood. Properties at the tip of the Peninsula (Portsea, Sorrento) can attract more specific lender assessment given the premium price points, but our panel includes lenders fully comfortable with Mornington Peninsula property across the full range.
Areas we serve near Frankston
We service all of Frankston and surrounding suburbs including: Frankston, Frankston South, Frankston North, Seaford, Carrum Downs, Langwarrin, Skye, Sandhurst, Mornington, Mount Martha, Mount Eliza, Baxter, Somerville, Tyabb, Hastings, and all northern Mornington Peninsula suburbs.
Documents you will need
- Income: Last 2 payslips, or 2 years tax returns if self-employed
- Property: Current council rates notice
- Existing loan: Most recent mortgage statement
- ID: Driver licence or passport
- Bank statements: 3 months of transaction history