Interest rates are expected to drop in 2025, after more than a year of the Reserve Bank of Australia (RBA) holding the cash rate. With at least two rate cuts predicted this year, many homeowners are considering refinancing to save money and secure better loan terms. If you’ve been thinking about it, here are five good reasons to refinance your home loan in 2025, and tips to guide you through the process.
1. Save with a lower interest rate
Refinancing could help you get a lower interest rate, reducing monthly repayments and the total interest you’ll pay over the life of your loan. With rates expected to drop, refinancing now could help you lock in savings sooner.
Every lender sets their rates differently. A Mortgage Express broker can help you compare options and decide if your current loan is still competitive.
2. Get a loan that fits your needs
Life changes and so should your home loan. Refinancing lets you choose a loan that suits your current situation, with features like:
- Offset accounts
- Extra repayment options
- Redraw facilities
- A mix of fixed and variable rates
3. Lock in a fixed interest rate
While interest rate cuts are expected this year, their timing and extent are uncertain. Refinancing now to a fixed rate can provide peace of mind and protect you from future rate hikes.
Fixed repayments make budgeting easier. And, if your current fixed term is ending, refinancing could get you a better rate or more flexible terms.
4. Simplify debt with consolidation
Managing multiple debts can be stressful. Refinancing lets you consolidate personal loans, credit cards or car loans into your mortgage. It simplifies your payments and could save you money on interest.
Paying down consolidated debt faster also improves your credit score, setting you up for better borrowing options in the future.
5. Access the equity in your home
Refinancing lets you tap into your home’s equity - the difference between its value and what you still owe.
Use this equity for renovations or upgrades, a family holiday, or to buy an investment property. Accessing equity can help you achieve your goals without taking out new loans.
Take control of your finances
With interest rate cuts expected, 2025 could be the perfect time to refinance. Get expert advice from Mortgage Express. Our brokers can guide you through the process and help you choose the right loan for your needs. Contact us today to get started!
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.
