How home loan interest rate changes impact you

Fluctuations in home loan interest rates can impact your mortgage

man and woman discussing refinancing

When did you last take a look at your home loan? Having a regular home loan health check is a great way to pay off your home loan sooner and save you in the long run. There are no hard and fast rules as to how often you should refinance your home loan but there are some external and personal factors that might lead you to consider it. 

Interest rate rises

The mortgage market is constantly changing, so your home loan may not be as attractive today as it was many years ago. The home loan market is incredibly competitive and many lenders will introduce attractive offers including low rates, low fees, or additional features. 

This could put you in a great position to re-negotiate your home loan and refinance. The best way to do this is to simply ask your lender for a lower rate through a broker. Of course, you should also shop around with other lenders to ensure you’re getting the  right interest rate across the term of your loan. 

Fixed term expiry

At the end of your fixed rate term, your loan reverts to a variable rate – which can be higher than the standard variable rate offered by that lender. This can be a good time to consider refinancing, after all, it’s likely the home loan market has changed since you fixed your home loan. Plus – you want to make sure that your home loan is right for you, particularly if your goals or circumstances have changed.

Split loan

If you’re on a split loan – that is, you’ve split your home loan in two parts; one portion fixed and the other variable - then at the end of your fixed term, your loan will continue on the variable interest rate. At this time it can be a good idea to consider refinancing if you want to re-fix part of your loan or reassess your home loan entirely.

Lender choice

Banks, building societies, lenders. There are a number of options when choosing your home loan and maybe the lender you’re with now isn’t quite meeting your needs. Aussie has a panel of over 20 leading lenders^ from big banks through to smaller credit unions and lenders. Your Aussie Broker can help you refinance with the lender that suits you most.

Get the latest loan features

Life doesn’t stand still and neither does the home loan market. Lenders are constantly introducing new loan features and packages. You may be missing out on opportunities to make your home loan work harder for you, with features such as additional repayments, redraw, flexible rate options, portability or a repayment holiday. Before you refinance, it’s a good idea to assess your current life stage and make sure your home loan fits in with you – not the other way around.

There are many good reasons to consider refinancing. If you’re not sure if it’s right for you, an Aussie Broker can explain your options and walk you through the process. Chat to us about refinancing, you never know how much you could be saving.

Speak to an Aussie Broker 

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