How cheap is your home loan? The big move 30% of Aussies are making right now
Hope Coumbe, Finance Editor
First published 20 March 2025, 12:30 PM
Close to a third (30%) of Aussies say they’re now considering refinancing to take advantage of new competitive offers from lenders, according to Westpac.
“With cost of living remaining top of mind for many Australians, savvy refinancers are making the most of the competitive mortgage market and shopping around for a better deal,” said managing director of mortgages James Hutton.
The bank’s latest Home Ownership Report also showed 82% of refinancers are looking for a solution that is both fast and digitised.
The latest Mortgage Choice Home Loan Report also reveales the decline in refinancing activity over the last three quarters has officially reversed.
The value of loans for refinance rise 10% nationally over the December quarter, with many borrowers now on the hunt for better deal.
'How much does it cost to refinance': youtube.com/mortgagechoice
Benefits of refinancing
There are five key benefits of refinancing outlined below.
1. Save money
Do not assume that your loan offers good value in every environment. If you’ve had your loan for a few years, chances are, there could be scope for you to save. By securing a cheaper interest rate and lowering your monthly repayment, you could be entitled to more savings than you realise.
2. Pay off your mortgage sooner
By refinancing to a better rate, you’re reducing your overall interest payable and, therefore, your total home loan balance. It's worth realising it doesn't have to take 25 or 30 years to pay off a home.
3. Equity to fund purchases or lifestyle goals
Refinancing is often used to free up the equity you have in your current home in order to fund purchases or lifestyle goals. Having access to equity, for example, could help you buy an investment property, renovate, build and more. How much equity you can use will vary between lenders, which is why having a home loan expert on your side could make all the difference when it comes to doing the legwork.
4. Debt consolidation
Refinancing your home loan can provide an opportunity to streamline your debt, and potentially reduce the overall interest you're paying on multiple debts through the process of 'debt consolidation'. It means folding several high interest debts into one lower rate debt – which could be your home loan - and this may reduce your total monthly repayments.
5. Better loan features
Many homeowners may have home loans that do not fit their purpose or have extra features that aren’t being used effectively. Having the right facilities could save you big time in the long run, so it's worth getting expert advice when it comes to understanding the different loan features available and how you could benefit.
