Thinking about refinancing your home loan?

Font size :

With interest rates officially on hold for another month, you may be using this breathing space to take a closer look at your home loan.


If you rushed in and signed up for a dodgy loan, the good news is you’re certainly not stuck with the same deal for life! If you’re concerned you might not have the best loan, use this time to shop around and see what else is available. 



If you’re considering refinancing your home, Your Money Magazine suggests:


Fully review the terms of your existing mortgage contract. Take a good look at your current interest rate, fees and other costs. Then check out a few reputable mortgage comparison websites like to compare your loan with others on the market.

Your interest rate is the most critical aspect of the loan terms. Even a 1% reduction can save you thousands of dollars, particularly if you’ve still got a long way to go.

When looking for a better loan, consider how important to you the following attributes of a mortgage are:

- interest rate charge

- flexibility of payments

- entry, exit and ongoing fees – or preferably a lack of them

- customer support and service

- term of the loan – how quickly do you want to repay?

- lenders mortgage insurance – is it required?

- extras: does the mortgage provide an offset account, a redraw facility, etc?

- security against rate rises

Compare your current deal with other available loans on each of the above criteria. If alternative loans come out in front, you’ve got a valid reason to refinance. Just remember that you still need to crunch the numbers very carefully.


Be prepared. Don’t make the mistake of thinking it’s going to be an in/out process. Refinancing means repeating the whole home loan process, so make sure your credit record is as good as you can make it. Start by paying off as much personal debt as possible, and reducing credit card limits to manageable levels before starting the application process. It’s also important to demonstrate employment consistency, so hold off on any employment changes until after you’ve completed the refinancing process.


Talk to your current lender. Quite often your existing lender may offer a better deal in order to hold on to your as a customer, so this is a good place to start when shopping around.



Hot tip!

As of 1 July 2011, new home loan contracts must be free of exit fees by law. Note that exit fees on existing loan contracts may still apply.


Related Article

Top 10 refinacing mistakes

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords