With the RBA cash rate at 0.50%, home loan interest rates are dropping to record lows in Australia, but how do you know when to refinance your home loan? Consider these points:

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Your financial circumstances have changed or are changing

You may have a new job, your income could have increased, or you might have a baby on the way! Consider that you may qualify for a better home loan if your circumstances have changed since your settlement or last review, or that you might need more out of your home loan if your circumstances are changing in the future.

Interest rates are lower than my current loan

If your interest rate seems high, it pays to check if the lower rates on offer will actually benefit you specifically. Just because an advertised rate is lower, doesn’t mean that it can actually save you money, or you qualify for a particular lender… it does pay to check for your piece of mind either way.

Your fixed term is coming to an end

Are you reaching the end of your current fixed rate? It’s best to check what your rate will revert to, if re-fixing with your current lender is beneficial, or if the cheaper rates on the market are worth refinancing to.

Your other debts are too expensive

Do you find that your credit card balance is usually close to the limit? Or that your car loan interest rate seems way too high in the current market? Using the equity in your home could be the right strategy to ease the credit burden, or there could be alternative ways to help you pay off some of these pesky debts.

You need more cash flow

Your utilities always seem to be going up, the house needs some work, your kids are just getting more expensive as they get older, or you could just want some more disposable income to live a more entertaining life? Saving money through refinancing your home loan is likely to be much easier than obtaining a pay rise at work.

You’re closer to retirement

The older you get, the harder it becomes to refinance…particularly for an owner-occupied home loan. If you’re reaching your middle years, check to see if you can free up some cash now and put yourself in a better position to retire before it is too late.

You need more out of your home loan

You need more features than you previously required. Your home loan fees and charges could seem high for what you are receiving. You might get full use out of a 100% offset account now that you have come into more money, or you might be more digitally savvy with your finances now and need a product that suits your digital experience. If you’re asking yourself that something could work better with your current loan, then it is definitely worth checking if that feature already exists.

Your house has gone up in value

Interest rates can be determined by how much you borrowed against the value of your home. Have values gone up in your suburb? Or have you put a lot of work into bettering your property since you bought it. Check your current loan to value ratio and see if that can result in you obtaining a much lower interest rate than what you are currently on.


All it takes is a really easy discussion with your Mortgage Broker to decipher whether or not it is the right time to refinance. Chat with us now online or simply call 8300 8300.

*The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone's personal situation is different, this article should not be taken as advice. The figures used in this article are to be used as a guide only. Depending on your personal circumstances, these numbers may vary. We recommend you seek individual advice with a mortgage broker.