The most common reasons for refinancing a home loan are to access a lower interest rate or loan features.

Refinancing doesn’t have to mean adding features on to your loan – it can be a chance to save money by getting rid of features you’re paying for but don’t need.

QBANK tip: Look for a bank with a human touch, where home loan decisions are made by real people. The best lenders stay in touch after you get your home loan, and check in to see if it’s still working for you. Be wary of lenders who get a commission for selling you a new loan.

Keep reading:

• Thinking about switching your loan?

Back to top ^

There’s pros and cons to refinancing, depending on your financial circumstances.

 Top 3 pros:

• A lower interest rate could take thousands (and years) off your mortgage
• Accessing equity when you refinance – it might be a chance to do that reno or take that holiday.

Top 3 cons:

• It could cost you to refinance with exit fees from your current lender and application fees with a new one
• Your new lender may ask you to pay Lender’s Mortgage Insurance (LMI) if you have less than 20% equity in your property (even if you paid it on your original loan)
• You may end up paying for new loan features that add temptation – like redraw facilities that give you access to your equity as cash.

QBANK tip: Weigh up the savings you’ll make by refinancing your loan against how much it costs. Think about getting some financial advice on how much you need to save on your loan to make it worth your while to switch.

Keep reading:

• Financial planning for smart investment choices
• Pros and cons of refinancing your home loan

Back to top ^

Refinancing your loan can be a great way to get access to new loan features and a lower interest rate. If you get the right advice and work with a lender you trust, it can be a positive move for your financial future.

Refinancing generally works best when you:

• are moving to a new loan structure with a current lender you trust
• plan to stay in your current home for the foreseeable future (you save more in the long term)
• are locking in a lower interest rate, without extending the loan period
• will still be better off financially even with any refinancing fees.

QBANK tip: Refinancing doesn’t always mean switching to a new lender. If you’re a happy QBANK home loan customer, you can talk to us about refinancing to a new loan structure that works for you.

Talk to a Mobile Banking Specialist when and where it suits you – they can give you all the options on loan structures and features and what refinancing could look like for you.

Back to top ^