If the chaos of the pandemic taught us anything, it’s that nothing in life is guaranteed. In recent years, we’ve seen income levels fluctuate, house prices soar, and the cost of living rise to record-new levels. These changes significantly impact how people manage their budget and mortgage repayments. Whether you’re looking to save money with a favourable interest rate, finance a renovation to improve value, or access equity for further investment, refinancing your home loan could be a smart move. Find out if refinancing is right for you by exploring the benefits in various scenarios.

Are you considering a fixed interest rate?

If you're currently on a variable interest rate, market fluctuations can cause your repayments to change unpredictably. Refinancing to a fixed interest rate provides stability and peace of mind by locking in your repayments for a set time. It’s particularly helpful when interest rates are rising or are predicted to rise, as it protects you from future rate hikes. By fixing your interest rate, you can better manage your budget and financial planning, knowing exactly what your repayments will be each month.

Can your home equity work harder?

Your home equity—the difference between your home's value and what you owe on your mortgage—can be a powerful financial tool. Refinancing allows you to tap into your equity to fund significant expenses like home renovations, buying an investment property, or paying for educational expenses. Leveraging your home equity allows you to access funds at a lower interest rate compared to personal loans or credit cards, making it a cost-effective way to finance your goals and potentially improve your financial position. 

Do you want to save money or reduce your loan term?

Getting a lower interest rate or a more favourable home loan package through refinancing can lead to substantial savings. Lower interest rates reduce your monthly repayments, freeing up cash for other expenses or investments. Reducing your loan term allows you to pay off your mortgage faster and save on interest over the life of the loan. This strategy makes sense if your income or financial situation has improved since you first took out your mortgage, allowing you to comfortably manage higher repayments and repay your loan faster. 

Do you want to consolidate debt and save money?

If you’re juggling multiple debts - such as credit cards, personal loans, or car loans - refinancing to consolidate these into your home loan can result in significant savings and make debt repayments more manageable. Not only does debt consolidation help simplify your finances by combining multiple repayments into one loan repayment, but it can potentially lower your overall interest costs too, as home loans typically offer lower interest rates compared to other types of debt.

Aligning your home loan with your financial situation

Refinancing your home loan can be a strategic move that helps align your mortgage with your current financial situation and future goals. If you answered yes to any of the questions above, contact a Mortgage Express broker today to explore refinancing options that work for you.

Our experienced team of mortgage brokers provide personalised mortgage advice, to help you navigate the refinancing process and secure the most favourable loan terms for your new home loan. Contact Mortgage Express today to start your refinancing journey and make your home loan work harder for you.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA) | Member of Choice Aggregation Services.