In today’s ever-changing financial landscape, knowing when to refinance your mortgage can make a significant difference to your financial future. Many Australian homeowners are surprised to learn they could be paying more on their home loan than they need to. If it’s been more than a year since you reviewed your loan, there’s a good chance a better option is out there.
To LJ Mortgages & Finance, we help clients assess their current lending situation, identify opportunities for savings and navigate the refinance process with confidence. Here’s what you need to know.
What Is Refinancing?
Refinancing simply means replacing your current home loan with a new one, often with a different lender to take advantage of improved loan features, lower interest rates, or a structure better suited to your goals.
Key Signs It Might Be Time to Refinance
- Your Interest Rate Is No Longer Competitive
If you’re still with the same lender from several years ago, there’s a good chance you’re paying more than necessary. With lenders offering sharp rates to attract new customers, refinancing could reduce your repayments or help you pay off your loan sooner. - Your Fixed Rate Is About to Expire
Coming off a fixed rate can be a shock, especially in the current rate environment. Refinancing allows you to explore new options and avoid rolling onto a high revert rate. - You’re Struggling with Multiple Debts
If you’re juggling credit cards, personal loans or car finance, refinancing can offer a powerful solution through debt consolidation. By rolling multiple debts into your home loan, you benefit from one manageable repayment at a lower interest rate. - You Want Better Loan Features
Your current loan might lack useful features like an offset account, redraw facility or flexible repayments. Refinancing gives you access to modern loan products that can save you money and offer more control over your finances. - Your Financial Situation Has Improved
If your income has increased or your credit score has improved since you initially took out your loan, you may now qualify for a more competitive loan product than when you first applied. - You’re Planning Renovations or Major Purchases
Refinancing can unlock equity in your home, giving you access to funds for renovations, travel costs, or investments without resorting to higher interest finance.
The Benefits of Refinancing with a Broker
Working with a mortgage broker means you’re not doing it alone. We compare loan products from a wide panel of banks and lenders, negotiate on your behalf, and guide you through the process, step by step. Importantly, we tailor advice to your personal goals, ensuring any refinancing decision is the right one for your unique situation.
Ready to Explore Your Options?
If you’re wondering whether now is the right time to refinance, the best place to start is with a quick review of your current loan. We offer obligation-free assessments and honest advice on whether refinancing makes sense for you, whether it’s for savings, flexibility or debt consolidation.
Let’s make your mortgage work harder for you. Get in touch today to book a refinance review.