Refinancing your home loan can be one of the most effective ways to cut your mortgage costs and improve your loan features — but the timing has to be right. Done strategically, it could save you thousands of dollars over the life of your loan.
When Should You Consider Refinancing?
A general rule of thumb: if your current interest rate is 0.5% or more above the market average, you may be paying far more than you need to. Even a small rate difference can have a big impact over 20–30 years.
For example:
On a $500,000 loan, a 0.5% lower rate could save you around $2,500 a year — that’s $75,000 over 30 years.
Key Benefits of Refinancing
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Lower interest rate – Reduce your monthly repayments and total interest paid.
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Access better loan features – Such as offset accounts, redraw facilities, or flexible repayment options.
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Debt consolidation – Combine multiple debts into one loan at a lower rate, making them easier to manage.
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Change loan type – Switch between fixed and variable rates, or split your loan for more flexibility.
What to Check Before You Refinance
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Exit fees and break costs – Some loans charge penalties for paying them out early, especially fixed-rate loans.
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Switching costs – Application fees, property valuations, and settlement charges can reduce your savings.
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Loan suitability – Make sure the new loan aligns with your long-term financial goals.
Final Thoughts
Refinancing is not just about chasing the lowest interest rate. It’s about finding the right balance between cost savings, flexibility, and features that support your financial strategy. Working with an experienced mortgage broker can help you compare options, calculate your true savings, and avoid costly mistakes.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au