Is It Time to Refinance Your Home Loan This Summer Break?

If you haven’t explored refinancing your home loan since interest rates started climbing, now might be the perfect time to ask yourself, “Why not?” With new research revealing opportunities for savings, a fresh look at your mortgage could help you start 2025 on the right financial footing.

A recent Canstar report found that over 20% of borrowers successfully negotiated better interest rates with their existing lenders this year, while 10% made the switch to a new lender.

Despite these promising numbers, fewer Australians refinanced in 2024 compared to 2023. With interest rates likely to stay higher for longer, this summer break could be the ideal time to reassess your options.

What’s Stopping Borrowers From Refinancing?

Canstar highlights that around 5% of borrowers who tried to refinance in 2024 were unsuccessful due to insufficient home equity. Another 5% didn’t meet their bank’s requirements.

This situation, often called ‘mortgage prison,’ leaves borrowers stuck with higher repayments because they don’t qualify for better rates. But the key question is: are you really stuck, or could it be time to test the waters again?

Why You Should Revisit Refinancing

Even if past attempts to refinance didn’t pan out, the conditions may have changed in your favour. Here’s why:

Increased Home Equity

National property prices rose by 5.5% in 2024, meaning you might have more equity in your home than you realise.

Easing Stress-Test Buffers

Some lenders are now willing to stress-test refinancers with a loan serviceability buffer as low as 1%, compared to the standard 3%.

A Strong Repayment History

Consistently making repayments can boost your credibility with lenders, potentially opening new refinancing opportunities.

Speaking with a mortgage expert can help you uncover these opportunities and explore whether you’re eligible for a better deal.

How Much Could Refinancing Save You?

Many asked, “How much can you really save by refinancing?” Well, the potential savings depend on factors like your loan size, current interest rate, and the reduction in that rate.

According to RateCity, borrowers who didn’t refinance their home loans in the past year have paid nearly $6,000 more in interest on average. That’s a significant amount that could have stayed in your pocket!

Is Refinancing Hard Work?

One common misconception is that refinancing is too difficult, with 17% of borrowers surveyed by Canstar citing this as a reason they’re not planning to refinance.

The reality? It doesn’t have to be hard. When you work with a mortgage professional, much of the heavy lifting is done for you. At Osinski Finance, we’ll:

• Simplify the Process: Handle the paperwork and manage lender communications.
• Customise Options: Find a loan that matches your financial goals.
• Save You Time: Streamline every step of the refinancing journey.

Take the First Step Today

Refinancing your mortgage could be the financial refresh you need heading into 2025. Whether you want to lower your monthly repayments, pay off your loan faster, or free up funds for other priorities, we are here to help.

We specialise in finding tailored home loan solutions and navigating the complexities of refinancing, whether for personal home loans or SMSFs so you don’t have to. 

Get in touch today to see if your current loan still fits your needs or if it’s time to upgrade to a better deal.

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