7 Telltale Signs It’s Time to Refinance Your Home Loan

Your home loan isn’t something you should set and forget. As the market and your life evolve, so should your mortgage. It’s worth having a conversation about refinancing.

It could save you money, reduce financial stress, and help you reach your goals sooner.

Refinancing your home loan isn’t just about chasing a better interest rate—it’s about making sure your mortgage continues to work for your current financial goals and lifestyle. Many Australians take out home loans and leave them untouched for years, not realising their circumstances—or the market—have changed significantly.

If you’re wondering whether it’s time to review your loan, here are 7 clear signs it might be time to refinance.

1. Your Interest Rate is No Longer Competitive

One of the most obvious reasons to refinance is when your interest rate is no longer in line with the market. Home loan rates can fluctuate, and lenders often reserve their best deals for new customers, leaving loyal borrowers on outdated, higher rates.

If your mortgage interest rate starts with a “6” or higher, there are new loans available in the low 5s or even high 4s, you could be overpaying by thousands each year. Etairos Finance can compare offers and help you determine if switching could save you money.

2. Your Financial Situation Has Improved

If your income has increased, you’ve paid off other debts, or your credit score has improved since you first took out your home loan, you may now be eligible for a more favourable loan.

A better financial profile could give you access to lower interest rates, more flexible features, or the ability to reduce your loan term—helping you pay off your mortgage faster and with less interest over the life of the loan.

3. You’re Struggling with Monthly Repayments

On the flip side, if you’re finding it harder to keep up with your monthly mortgage payments due to increased living costs, reduced income, or unexpected financial changes, refinancing could help ease the pressure.

Options include switching to a loan with a lower rate, extending the loan term to reduce your repayments, or consolidating other debts into your mortgage to simplify and lower your monthly commitments. This doesn't have to be a forever thing, just a means to get you back on your feet until you can go after your mortgage again.

4. Your Fixed Rate is Ending Soon

Many borrowers opt for fixed-rate home loans for the stability of predictable payments. But when your fixed rate period ends, your loan usually rolls over to a higher “revert” rate, which can be significantly more expensive. As your fixed rate nears expiry, it’s the perfect time to compare your options. Refinancing before the revert kicks in could lock in a better rate or help you switch to a more flexible product.

5. You Want to Tap Into Equity for Renovations or Investments

If your property has increased in value and you've been steadily paying down your loan, you may have built up significant equity. Refinancing lets you access that equity for things like home improvements, purchasing an investment property, or covering major expenses (like school fees or business capital).

This is often cheaper than taking out a personal loan or using high-interest credit cards—plus, renovations can boost your property's value even further.

6. Your Loan Lacks Useful Features

Older home loans often miss out on features that are now standard in many modern mortgage products—like offset accounts, redraw facilities, or the ability to make extra repayments without penalties.

If your loan doesn’t offer these, refinancing to a more flexible product could save you thousands in interest and give you better control over your repayments and cash flow.

7. You’ve Had Major Life Changes

Significant changes like starting a family, changing jobs, getting married or divorced, or entering retirement can all shift your financial priorities.

Your current mortgage might no longer fit your lifestyle or long-term goals. Refinancing can help align your home loan with your new situation—whether that means lowering your repayments, switching to interest-only for a time, or shortening your loan term to get mortgage-free sooner.

When Not to Refinance your home loan

While refinancing can offer many benefits, it’s not always the right move. Watch out for:

• Break costs on fixed-rate loans

• High exit or application fees

• New LMI costs

• Resetting your loan term, which could increase the total interest paid over time

It’s important to weigh the cost of switching against the potential savings and benefits. Always speak to a trusted mortgage broker or financial adviser to crunch the numbers.

How a Mortgage Broker Can Help

A good broker can do more than just find you a lower rate. They’ll assess your financial situation, compare hundreds of loan products, explain features you might not have considered, and manage the process should you decide to refinance your home loan for you from start to finish.

Brokers are especially useful if your circumstances are complex—like being self-employed, having an irregular income, or wanting to consolidate debt.

Final Thoughts

Your home loan isn’t something you should set and forget. As the market and your life evolve, so should your mortgage. If any of these 7 signs ring true, it’s worth having a conversation about refinancing.

It could save you money, reduce financial stress, and help you reach your goals sooner.

Looking for expert refinancing advice? Etairos Finance can help you assess your options, negotiate with lenders, and secure a home loan that works for your future. Reach out today for a free, no-obligation consultation.