When Should I Refinance My Home Loan?

The lending market moves. Lenders reprice constantly, and not always to your benefit. The rate you locked in two years ago may have been competitive then. Today, there's a reasonable chance it isn't.

If you haven't had your loan reviewed recently, that's enough reason on its own to start the conversation. A loan review costs you nothing and takes less time than you'd expect.

Major life changes often change your lending picture too:

• You've paid down a significant amount of your loan, which may have changed your loan to value ratio (LVR). A better LVR bracket often unlocks better rates
• Your income has increased, improving your borrowing profile
• Your household structure has changed. A partner has returned to work, children are older, or debt has been paid down
• You're now self-employed and your financials look stronger than when you first applied

Any of these can change what's available to you, and a broker can assess that quickly.

If your property has increased in value, and across much of the Shoalhaven and Illawarra, properties have moved significantly in recent years, you may now have equity available that could fund a renovation, an investment property, or another goal.

Refinancing to access equity isn't the right move for everyone. But if it's something you're thinking about, it's worth a proper conversation to understand what's available and what it would actually cost you.

Not every refinance makes sense.

If you're close to paying off your loan, the savings window is short and switching costs may outweigh the benefit. If you're on a fixed rate with significant break costs, timing matters. And if your financial position has changed in ways that might affect your borrowing profile, it's worth understanding that before applying anywhere.

A good broker will tell you when refinancing doesn't stack up, not just when it does.