Refinancing Your Mortgage: When is the Right Time?

Refinancing can help Australians save on interest, access equity, or consolidate debt. But timing is key to maximising the benefits. This blog covers when refinancing is ideal and how to spot the signs that it’s time to switch.

Reasons to Consider Refinancing

Refinancing makes sense for various reasons, including lowering interest rates, accessing home equity, switching loan types (from variable to fixed or vice versa), and consolidating high-interest debts. Each reason has unique financial implications that are worth examining.

Signs That Now Might Be the Right Time to Refinance
Key indicators for refinancing include current rates being lower than your loan rate, a higher income, or a stronger credit score since your original loan approval. It’s also worth considering if you need access to funds for home improvements or investments.

Costs of Refinancing and How to Minimise Them
This section breaks down refinancing costs, including exit fees, application fees, and Lender’s Mortgage Insurance (if the new LVR exceeds 80%). By knowing what to expect, borrowers can budget accordingly and look for lenders who may offer discounts or waive fees.