Timing your refinance correctly can maximise savings and minimise costs. Here are the key triggers that signal it might be time to review your home loan.
Key Refinancing Triggers
1. Your Fixed Rate Is Ending
When your fixed rate expires, you'll revert to the lender's variable rate—often not competitive. This is the perfect time to shop around.
2. Rate Gap Has Widened
If your current rate is 0.5% or more above market rates, the savings from switching likely outweigh refinancing costs.
3. Significant Equity Growth
If your property value has increased substantially, you may access better LVR tiers with lower rates.
4. Income Improvement
Better income can unlock more competitive products and rates previously unavailable to you.
5. Lifestyle Changes
Marriage, children, or career changes may require different loan features like offset accounts or repayment flexibility.
When NOT to Refinance
- Recently entered a fixed term with high break costs
- Planning to sell within 1-2 years
- Your financial situation has worsened
- The savings don't outweigh the costs