Refinancing means replacing your current home loan with a new loan, either through your existing lender or a different one.

It can be useful when your rate, loan features or financial goals have changed, but switching is only worthwhile when the benefits outweigh the costs.

Signs It May Be Time for a Review

You may want to review your home loan when:

• Your interest rate is no longer competitive

• Your fixed-rate period is ending

• Your property has increased in value, changing your loan-to-value ratio

• You want an offset account or more flexible repayment features

• Your income or financial position has improved

• You are planning a renovation or another property purchase

• Your loan no longer suits the way you manage money

A review does not always need to end in a refinance. Sometimes your current lender may offer a better rate or product after a pricing request.

Check the Costs Before Switching

Refinancing can involve discharge fees, application costs, valuation charges, government registration fees and possible break costs on a fixed loan.

You should also consider whether lenders mortgage insurance could apply again if your available equity is limited. A lower rate may not create a genuine saving if the upfront costs are too high.

Make Sure You Can Qualify Again

Refinancing is a new credit application. The lender will reassess your income, expenses, debts, credit history and the property’s value under its current criteria.

Changes to employment, household income or existing commitments may affect your options, even if you have never missed a repayment.

Final Thoughts

The right time to refinance is when the numbers and the loan structure both improve your position.

Prestige Finance Brokers can compare your current loan against suitable alternatives, calculate the switching costs and explain whether staying, renegotiating or refinancing appears more practical.

General information only. Approval and savings are not guaranteed.