Feeling crushed by repayments? You’re not the only one.
With higher interest rates, steeper bills, and multiple debts piling up, it can feel like you’re stuck; not making progress on your mortgage or your financial goals.
The good news? Refinancing could help you wipe out high-interest debt and build home equity faster, putting you back in control.
But what is refinancing?
Refinancing means switching your current home loan to a new one (either with your current lender or a different one) to get a better deal. This could mean:
Scoring a lower interest rate
Accessing loan features that make life easier (like offset accounts or redraw)
Unlocking the equity in your home to fund other goals
Put simply, it's about making your home loan work harder for you.
So, why do people refinance?
There's no one-size-fits-all reason, but these are the big ones:
Lower your monthly repayments and ease your cash flow.
Roll multiple debts (like credit cards or personal loans) into one simple, lower-rate loan.
Access equity for renovations, investments, or other major expenses.
Pay off your mortgage faster and save on interest.
Refinancing could be one of the smartest financial decisions in a market where every dollar counts.
You might also be interested in: 8 reasons to refinance your home loan
What refinancing can do: Two key ways it helps
Cut down debt and take back control.
High-interest debt can feel like you’re treading water. Refinancing can help you turn the tide. Let's say:
$10,000 on a credit card at 18%
$10,000 on a personal loan at 14%
Combined repayments: ~$600–$700/month
Refinance into your mortgage at 6%
New repayment: under $150/month
That's over $450 in your monthly pocket plus lower interest overall.
But don't treat it like a reset button. Use the space to get ahead, not fall behind. Put extra into your loan, build a buffer, or invest in your goals.
Switch your loan type and grow equity faster.
If you're on an interest-only loan, you're not actually paying down your loan balance; you're just covering interest. Switching to principal and interest means every repayment is helping you own more of your home. Here's what that can look like:
Loan amount: $500,000
Interest-only for 5 years = balance still $500,000
Principal & interest for 5 years = balance closer to $440,000
That's $60,000 in equity built without relying on the property market.
Equity gives you options for renovations, investments or your next move.
Bonus tip: Use offset accounts to your advantage.
One smart feature to consider when refinancing? An offset account. It works by linking your savings to your loan, and every dollar in that account reduces the interest you're charged. Let's say:
You've got $20,000 in your offset.
That could save you around $1,200 yearly on a $500,000 loan at 6%.
That's money you can reinvest into your home, future, or peace of mind.
The takeaway? Refinancing isn't just about saving money on your interest rate. It's about:
Reducing debt that's holding you back
Freeing up cash flow so you can get ahead
Building equity and more options for your future
Because equity growth isn’t just about rising property values; it's about owning more of your home sooner through smart decisions.
Why refinance to reduce debt and grow equity faster?
When most people think about refinancing, they think about getting a better rate. That matters, especially with interest rates where they are now. But there’s more to refinancing than just numbers. If done well, it’s a way to clear debt, ease financial stress, and start owning more of your home faster.
Let’s unpack how it works.
Roll multiple debts into one home loan.
If you're juggling a credit card, a car loan, a personal loan, or maybe all three, you're not alone. Those high-interest debts can stack up fast.
Refinancing allows you to combine those debts into your home loan, usually at a much lower interest rate. Instead of keeping up with multiple repayments and rates, you could simplify everything into one manageable loan. Here's an example of how it could work:
$15,000 on a credit card at 18%
Refinance it into your mortgage at 6%.
You'll instantly reduce how much interest you're paying.
Plus, simplify your repayments into one regular amount.
It's not just about convenience; it's about creating a breathing room and making your money work smarter.
Learn more about refinancing for debt consolidation.
Reduce the overall interest you pay.
Credit cards and personal loans often have double-digit interest rates. That adds up fast; you could use that money for something better. By refinancing and rolling those debts into your home loan, you're swapping high-cost debt for lower-cost debt.
You're still making repayments, but now more of your money is going toward your future, not your lender's.
Free up cash flow (and breathe easier).
Refinancing can take some pressure off if your monthly repayments stretch your budget. By consolidating debt or changing your loan structure, you can reduce your repayments and free up monthly money. That extra cash could go toward:
Growing your offset savings
Starting an emergency fund or investing in your goals
By using this breathing room wisely, you can knock years off your loan without cutting back on what you enjoy.
Choose a loan structure that helps you get ahead.
Refinancing is also a chance to rethink how your loan works. The right structure could help you build equity faster and give you more flexibility. Here's how:
Switch from interest-only to principal and interest. Every repayment chips away at your loan balance.
Add an offset account. Your savings reduce the interest charged, helping you pay off your home faster.
Choose a loan with a redraw. You can make extra repayments and access them later if needed.
At Aussie, we believe refinancing is about more than chasing a lower rate. It's about taking control, reducing unnecessary debt, and setting yourself up for the future.
When you work with an Aussie Broker, we'll help you:
Compare options from over 25+ leading lenders
Crunch the numbers on what's possible
Find a structure that works for your goals, whether that’s lowering repayments or building equity faster
The right refinance won't just save you money. It'll help your money work smarter.
What are the alternative refinancing strategies for faster equity growth?
You don't need to shorten your loan term or take big financial leaps to start getting ahead.
Here's how to get started if you're looking for practical, low-stress ways to reduce debt and build equity faster without stretching your budget.
These small steps can make a big difference.
1. Make extra payments, even if they're small.
Every extra dollar you put into your loan helps chip away at the principal. That means less interest paid overall, and you'll own more of your home sooner.
Even $50 a week could knock thousands off your loan over time.
Got a bonus, tax return or side hustle win? Put some of it straight into your loan.
Think of it as paying your future self with interest saved as your reward.
Remember, you don't have to go big; just be consistent.
2. Pay fortnightly instead of monthly.
Here's a simple switch that adds up fast. There are 26 fortnights a year, so if you switch to fortnightly repayments, you'll sneak in the equivalent of one extra month's repayment yearly.
More repayments = faster equity growth.
Less interest paid = more in your pocket.
It's a set-and-forget change that works behind the scenes.
It doesn't feel like much, but it effortlessly shaves time and money off your loan.
3. Split your loan for more control and flexibility.
Can't decide between fixed or variable? Why not do both?
A split loan gives you rate security on one part and flexibility on the other.
Fix part of your loan for stability.
Keep the other part variable so you can make extra repayments or benefit from rate drops.
Great if your income is changing or you're planning for life changes.
Borrower tip: Fix what you need. Flex what you can.
4. Put your offset or redraw features to work.
A well-structured loan can do more than keep the roof over your head; it can help you pay it off faster.
Offset account: Any savings you park here reduces the interest charged on your loan.
Redraw: This lets you make extra repayments and access it later if you need to.
Let's say you keep $10,000 in your offset. That could save you around $600 yearly in interest on a 6% loan. Keep your emergency fund in your offset; it's ready if needed and working for you daily.
5. Give your home loan a regular check-up.
Just like your health or your car, your home loan needs a check-up now and then. If you've been on the same loan for 5+ years, it may no longer be the right fit.
Interest rates change
Lender offers change, and
Your goals change, too
That's where an Aussie Broker can help. We'll compare your loan with others on the market and help you decide whether to switch or stay.
Feel like your loan is stuck in the past? Talk to your local Aussie Broker today, and let's get it working for your future.
You might also be interested in: Home loan refinance alternatives and options
What are the common refinancing mistakes to avoid?
Refinancing done right is a great move. Done wrong? It could set you back.
Here's what to steer clear of:
Chasing the lowest rate without checking fees
Resetting your loan term unnecessarily
Refinancing too often and hurting your credit score
Aussie Brokers are here to help you avoid these traps and get a deal that stacks up.
Final thoughts: Ready to refinance?
Refinancing might be your next smart move if you're ready to stop feeling stuck and start getting ahead. However, it’s not easy to navigate. That's where an Aussie Broker comes in. We will:
Compare options from over 25+ lenders.
Help you find the right features for your life and goals.
Do the legwork so you don't have to.
We've helped Aussies nationwide find a better way forward, whether saving money, consolidating debt or building for the future.
You don’t have to reset your lifestyle to build equity and reduce debt. A few clever strategies, backed by the right support, can help you get ahead and stay ahead.
Let's find the right loan for you.