Should you refinance now?

With millions of Australian homeowners likely to be slugged with higher mortgage repayments due to the cash rate hikes, there’s one question on everyone’s lips.  Is now a good time to refinance? 

While it depends largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up. 

Here are a few things to consider.

Interest rates are likely to rise further

Reserve Bank governor Philip Lowe has made it pretty clear that more rate rises are inevitable. 

In fact, he’s indicated it’s not unreasonable for the cash rate to climb to 2.5 per cent

Those on a variable home loan are likely to feel the pain of each cash rate hike, as lenders pass on the increases and repayments go up.

When is refinancing worth it?

You’ve been with the same lender for a long time

For some, the thought of refinancing can seem all too hard, but if you’ve had the same home loan for several years, chances are you could be getting a better offer elsewhere.

You’ve never heard of a redraw facility or offset account

Nowadays, there are all sorts of loan features and tools to help you save interest and get ahead. Two popular choices are a redraw facility and offset account. 

With a redraw facility, you can make extra repayments on your mortgage and save on interest, but still access funds should you need them. 

An offset account allows you to deposit money into a transaction account that’s linked to your mortgage. Deposited funds are offset against your loan balance, reducing your interest.

Your situation has changed

If you’re earning more money, your financial situation has changed or have different goals to when you took out your home loan, these are all good reasons to consider refinancing.

Your debt is out of control

A popular reason to refinance is to consolidate debt. This involves refinancing your mortgage and using your equity to pay off your debt. 

There are pros and cons to debt consolidation, so it’s important to speak to us about whether it’s right for you.

You want to access your equity

You may want to use your equity for a big-ticket purchase, such as buying an investment property or renovating your home. 

Refinancing can help you achieve these kinds of goals.

Like to know more?

With so many changes to interest rates at the moment, now could be the time to consider your financial position and whether it’s worthwhile refinancing.  

We can help you work through how any additional interest rate rises would affect you and make sure you have the right home loan for your needs. 

Get in touch today.

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We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.

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A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz