With millions of Australian homeowners likely to be slugged with higher mortgage repayments due to the cash rate hikes, there’s one question on everyone’s lips.

When should you refinance your home? Is now a good time to refinance?

While it depends largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up.

Here are a few things to consider.

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Interest rates are on the rise

The Reserve Bank of Australia has lifted the nation’s official cash rate target by another 50 basis points this month, taking the baseline interest rate to 1.35 per cent. It is the third consecutive month in which the central bank has hiked rates, which are now at a level not seen since May 2019.

Those on a variable home loan are likely to feel the pain of each cash rate hike, as lenders pass on the increases and repayments go up.


When is refinancing worth it?

You’ve been with the same lender for a long time

For some, the thought of refinancing can seem all too hard, but if you’ve had the same home loan for several years, chances are you could be getting a better offer elsewhere.

You’ve never heard of a redraw facility or offset account

Nowadays, there are all sorts of loan features and tools to help you save interest and get ahead. Two popular choices are a redraw facility and offset account.

With a redraw facility, you can make extra repayments on your mortgage and save on interest, but still access funds should you need them.

An offset account allows you to deposit money into a transaction account that’s linked to your mortgage. Deposited funds are offset against your loan balance, reducing your interest.

Your situation has changed

If you’re earning more money, your financial situation has changed or have different goals to when you took out your home loan, these are all good reasons to consider refinancing.

Your debt is out of control

A popular reason to refinance is to consolidate debt. This involves refinancing your mortgage and using your equity to pay off your debt.

There are pros and cons to debt consolidation, so it’s important to speak to us about whether it’s right for you.

You want to access your equity

You may want to use your equity for a big-ticket purchase, such as buying an investment property or renovating your home.

Refinancing can help you achieve these kinds of goals.

What are your refinancing options?

With so many changes to interest rates at the moment, now could be the time to consider your financial position and whether it’s worthwhile refinancing your home.

At Crest Lending We can help you answer the question of when should you refinance your home? We will work through how any additional interest rate rises would affect you and make sure you have the right home loan for your needs.

Get in touch today.

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Check out our Home Buyers Essentials Guide for more information.