Refinancing in 2025: When Is the Right Time to Review Your Home Loan?
If you’ve had your home loan for a few years, chances are your needs (and the market) have changed. In 2025, interest rates continue to shift, property values are evolving, and lenders are offering new, more competitive products. So, how do you know if it’s time to refinance?
Refinancing means replacing your current mortgage with a new one, either with your existing lender or a different one. Done right, it can help you save thousands in interest, reduce your monthly repayments, or unlock equity for other goals.
In this blog, we’ll walk through the signs that it might be time to review your home loan, what to consider before making the switch, and how to get started.
Why Refinancing Could Be a Smart Move in 2025
Interest rates in Australia have been on the move over the past few years, and lenders are competing harder than ever for new business. If your loan is more than two years old, there’s a good chance you’re no longer on the most competitive rate available.
Beyond interest rates, refinancing can also allow you to:
Switch to a loan with better features (like an offset account or redraw facility)
Consolidate higher-interest debts like credit cards or personal loans
Access the equity in your home to fund renovations or investments
Move from a variable rate to a fixed rate (or vice versa) to suit your strategy
5 Signs It Might Be Time to Refinance
Your Interest Rate Is Higher Than the Market Average
If your current rate starts with a “6” but you’re seeing advertised rates starting with a “5”, it’s worth comparing. Even a 0.5% reduction can save you thousands over the life of your loan.You Haven’t Reviewed Your Loan in Over 2 Years
Lenders often reserve their best deals for new customers. If you haven’t checked your rate lately, you could be missing out.Your Fixed Term Is Ending
When your fixed rate expires, your loan usually rolls over to a higher variable rate. This is the perfect time to review your options and negotiate.You Want More Flexibility or Features
If your current loan doesn’t offer features like an offset account, extra repayments or redraw, refinancing might give you a more flexible product.You Need to Access Equity
If your home has grown in value, refinancing can let you tap into that equity, whether you’re planning a renovation, investing in property, or consolidating debts.
What to Consider Before Refinancing
Before jumping in, it’s important to weigh up the costs and benefits. Some fixed loans have break fees, and most lenders charge discharge and application fees. You’ll also need to consider the value of your property, especially if you’re borrowing more.
That’s why it’s a good idea to speak to a mortgage broker first, we can calculate whether refinancing is worth it, compare offers, and guide you through the process.
How to Get Started
Refinancing doesn’t have to be complicated. We’ll begin by reviewing your current loan, assessing your financial goals, and comparing options from a wide panel of lenders. If there’s a better deal out there for you, we’ll handle the paperwork and make the switch as seamless as possible.
Final Thoughts
Refinancing in 2025 can be a powerful way to reduce your repayments, unlock equity, or simply bring your loan in line with where you're at in life. The key is to review regularly, ask the right questions, and be open to switching if your current loan no longer meets your needs.
Ready to explore your refinancing options? Let’s have a chat and find out how much you could save.
