Why should you refinance?

Refinancing is as simple as paying off an existing loan and replacing it with a new one to improve your circumstances. Changes may include taking advantage of lower rates,  shortening your loan term, adjusting repayments on your loan, so you can own your home sooner; accessing equity to purchase a new property or do a renovation; or taking out a loan with added features such as an off-set account or redraw facilities.

Your should consider refinancing when:

  • If your interest rate is greater than .75% above a current rates.
  • If you want more out of your deal. Consider refinancing if you need a bit more flexibility in your loan arrangement, such as line-of-credit or a redraw facility.
  • If you need extra cash or equity in your home
  • If you need funds to use for investment purposes, school fees, renovations and other important matters.
  • If your circumstances have changed.  If a significant change recently happened in your life (such as marriage or a job change), maybe it’s time to change your loan, too.
  • If you are unhappy with your current lender and don't feel like you are getting the service you need.
  • If you need to consolidate debt. Refinance your loan if you need to roll other higher interest loans (like credit card loans or personal loans) into your home loan.

"It is prudent to review your mortgage at least every two years, even if it's just to check that your mortgage is still achieving your financial goals". Rob Emmett, CEO, Collins Home Loans