Your home loan does not have to stay the same as your circumstances change. Refinancing can be worth reviewing if your rate is no longer competitive, your fixed period is ending, you want different loan features or you are looking to consolidate or restructure debt. We’ll help you compare the potential benefits against the costs of switching
Thinking about refinancing? Our free guide explains what to consider, including rates, loan features, costs and the steps involved in switching your home loan.
There is no single “right” time to refinance. It may be worth reviewing your home loan if your interest rate has changed, your fixed period is ending, your property value or equity has increased, your income or goals are different, or your current loan no longer has the features you need. The important thing is to compare the overall cost of changing loans, not just the advertised interest rate. My Broker & Co can help you review your current position and compare suitable refinancing options.
There is no single “right” time to refinance. It may be worth reviewing your home loan if your interest rate is no longer competitive, your fixed-rate period is ending, your property value or equity has increased, your financial circumstances have changed, or your current loan no longer offers the features you need. It is important to compare the overall costs and potential benefits of switching rather than looking at the advertised interest rate alone.
You can generally look at refinancing at any stage of your home loan, although whether it makes financial sense will depend on your circumstances and any costs involved in switching. Your current loan balance, property value, equity, income, and lender requirements can all affect the options available. If you are on a fixed-rate loan, there may also be break costs to consider before refinancing.
Refinancing can involve costs such as discharge fees, application fees, valuation fees, settlement fees and government charges, depending on your current lender and the new loan. If you are leaving a fixed-rate loan early, break costs may also apply. These costs should be compared with the potential savings or other benefits of switching before deciding whether refinancing is worthwhile.
Refinancing may reduce your repayments if you more to a lower interest rate, change your loan structure or extend your remaining loan term. However, a lower monthly repayment does not always mean a lower overall cost, particularly if the loan term is extended. It is worth comparing both the short-term repayment difference and the total cost of the loan before switching.
I some circumstances, refinancing can be used to consolidate debts such as personal loans or credit cards into your home loan. This may simplify your repayments and could reduce the interest rate applied to some debts. However, extending short-term debt over a long home loan term can increase the total interest paid, so the overall cost and loan structure should be considered carefully.
The amount of equity you need will depend on the lender, your loan-to-value ratio and your overall financial position. Having more equity can give you access to a wider range of refinancing with a higher loan-to-value ration may involve additional costs or lender requirements. Your property value and current loan balance are important starting points when reviewing your options.
The refinancing process can vary depending on the lenders involved, the complexity of your application and how quickly required documents are provided. The process usually involved reviewing your current loan, submitting an application, valuation and assessment, approval and settlement. Your broker can help coordinate the process and keep you updated as the application progresses.
Refinancing can be worthwhile if the potential savings or improvements to your loan outweigh the costs of switching. You may be looking for a more competitive rate, different loan features, improved flexibility or a structure that better suits your current circumstances. The best way to assess this is to compare your existing loan with suitable alternatives and consider both upfront costs and longer-term savings.
Whatever your circumstances, we will find the deal that’s right for you.
Send through a quick enquiry and we will be in touch.