Summer might be the perfect time to explore your options.
If you haven’t revisited refinancing since interest rates went up, it’s worth asking yourself why not. New insights suggest it could be a great opportunity to get ahead as we move into 2025. In fact, recent data from Canstar shows that over 20% of borrowers managed to secure a better rate from their current lender last year.
Interestingly, 10% of borrowers successfully switched to a new lender within the past year. Despite this, overall refinancing numbers have dipped compared to 2023. With the possibility of sustained higher rates, it could be wise to take another look at refinancing during the summer.
What’s stopping homeowners from refinancing?
According to Canstar, around 5% of homeowners who attempted refinancing in 2024 didn’t have enough home equity, and another 5% didn’t meet the banks’ criteria. This situation, known as ‘mortgage prison,’ can leave borrowers stuck with higher payments. However, it’s crucial to reassess your stance—you might have more options than you think.
Why consider refinancing now?
Even if refinancing hasn’t worked out for you in the past, it’s worth consulting with us to see if you qualify now. Property prices went up by 5.5% nationally in 2024, possibly increasing your home equity. Additionally, some lenders are adjusting their requirements, offering more favorable stress tests based on your repayment history.
How much could refinancing save you?
The savings depend on your loan size, current rate, and the reduction you can secure. RateCity reports that borrowers who didn’t refinance in the last year paid almost $6,000 more in interest on average.
Is refinancing a hassle?
Nearly 17% of borrowers surveyed by Canstar avoided refinancing because they assumed it was too difficult. Let’s dispel that myth. As home loan experts, we streamline the process for you, handling paperwork and negotiations with lenders.
Reach out to us today to review your home loan situation. We’ll determine if it suits your current needs and help you find better options if it doesn’t.
0447 654 321
