What does refinancing really mean and what can it do for your bottom line?

Here are five reasons you should consider it.

You could save yourself thousands

According to RBA research, if your current rate doesn’t start with a two, you could be paying an additional $1,000 a year in interest compared to someone taking out a new loan of equal value.*

Rates have never been more competitive

It really is a buyer’s market as some banks have offered rates as low as 1.89 percent. Make the call to your lender today and see what they can do to keep you, and then shop around!

Find a lender that will look after you

When was the last time you spoke to your lender? If your bank has a ‘set and forget’ style, you should shop around to find one that cares about you, your loan and your goals in life. Make sure they’re not only competitive in rates, but in service too.

Reach your financial goals sooner

A good lender wants you to pay off your loan and move on to bigger and better financial goals. If your lender is more interested in creating a profit for shareholders or holding onto you for longer, it’s time to re-evaluate.

Access the best features for you

Whether it’s an offset account, no additional fees or Apple and Google Pay, make sure your lender can support your whole financial system – not just your mortgage.

Ultimately, making the decision to refinance takes time, research and patience. Make sure you shop around to get the best long-term outcome for you and your home!

The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.

*Calculations based on a $250,000 loan on a variable rate taken at least four years prior to 2020.