Is It Time To Refinance Your Home Loan?

Fitzpatrick Financial Services would like to share a number of common reasons why mortgage holders refinance their home loans.

  1. Accessing equity: If you have a financing requirement (i.e. renovations, car, machinery) then cashing out equity held in your property could be something to consider.
  2. Property value has risen: If your property’s value has risen, your equity will have also increased. Lenders may now be willing to offer you lower rates.
  3. Improved business performance: Higher income may make you a lower-risk borrower, which could mean you can access better deals.
  4. Consolidating other debts: It could be cheaper to consolidate high-interest debts (i.e. personal loans and credit cards) into your home loan to save interest and reduce your overall repayments.
  5. Fixed-rate period is ending: Upon expiry, your fixed rate may roll onto a variable interest rate that isn’t competitive. This may be the perfect time to review your home loan.
  6. Interest-only period ending: Are you prepared for a significant increase in your repayments? If you are ready to revert to principal and interest repayments, most lenders will offer lower rates.

Must-Knows About Refinancing

Refinancing Costs Money

You will need to assess the potential savings versus the cost of switching lenders to make the best decision for you. Due to strong competition in the market, many lenders offer incentives to refinance to them, such as a cash-back offer, which may help offset some (or all!) of the switching costs.

You Don’t Need To Do This Alone

Negotiating loan terms is difficult if you don’t know all the ins and outs of lending. Consider seeking expert help from a mortgage broker before making any decisions. The team at Fitzpatrick & Co’s associate company Fitzpatrick Financial Services specialise in all areas of lending, including refinancing.

If you suspect it’s time to refinance your loan, don’t hesitate to contact Tim Sheehan at Fitzpatrick Financial Services: (3) 8544 1600,  or visit

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