Finance focus
Should you refinance now?

With millions of Australian homeowners likely to be slugged with higher mortgage repayments due to the cash rate hikes, there’s one question on everyone’s lips. 

Is now a good time to refinance? 

While it depends largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up. 

Here are a few things to consider.

Interest rates are likely to rise further

Reserve Bank governor Philip Lowe has made it pretty clear that more rate rises are inevitable. 

In fact, he’s indicated it’s not unreasonable for the cash rate to climb to 2.5 per cent

Those on a variable home loan are likely to feel the pain of each cash rate hike, as lenders pass on the increases and repayments go up.

When is refinancing worth it?

You’ve been with the same lender for a long time

For some, the thought of refinancing can seem all too hard, but if you’ve had the same home loan for several years, chances are you could be getting a better offer elsewhere.

You’ve never heard of a redraw facility or offset account

Nowadays, there are all sorts of loan features and tools to help you save interest and get ahead. Two popular choices are a redraw facility and offset account. 

With a redraw facility, you can make extra repayments on your mortgage and save on interest, but still access funds should you need them. 

An offset account allows you to deposit money into a transaction account that’s linked to your mortgage. Deposited funds are offset against your loan balance, reducing your interest.

Your situation has changed

If you’re earning more money, your financial situation has changed or have different goals to when you took out your home loan, these are all good reasons to consider refinancing.

Your debt is out of control

A popular reason to refinance is to consolidate debt. This involves refinancing your mortgage and using your equity to pay off your debt. 

There are pros and cons to debt consolidation, so it’s important to speak to us about whether it’s right for you.

You want to access your equity

You may want to use your equity for a big-ticket purchase, such as buying an investment property or renovating your home. 

Refinancing can help you achieve these kinds of goals.

Like to know more?

With so many changes to interest rates at the moment, now could be the time to consider your financial position and whether it’s worthwhile refinancing.  

We can help you work through how any additional interest rate rises would affect you and make sure you have the right home loan for your needs. 

Get in touch today.


The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.