{"id":5525,"date":"2024-12-19T10:23:15","date_gmt":"2024-12-19T00:23:15","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5525"},"modified":"2024-12-19T10:23:15","modified_gmt":"2024-12-19T00:23:15","slug":"have-you-refinanced-recently-it-could-be-time-this-summer-break","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/have-you-refinanced-recently-it-could-be-time-this-summer-break\/","title":{"rendered":"Have you refinanced recently? It could be time this summer break"},"content":{"rendered":"
A new\u00a0report from Canstar<\/a>\u00a0shows more than one in five borrowers were able to negotiate a better interest rate from their lender this past year.<\/p>\n One in ten successfully switched to a new lender in the last 12 months.<\/p>\n Even so,\u00a0fewer home loans have been refinanced<\/a>\u00a0this year compared to 2023.<\/p>\n With rates looking like they might stay higher for longer, it could be worth taking a fresh look at refinancing over the summer break.<\/p>\n According to Canstar, around 5% of borrowers tried to refinance in 2024 but didn\u2019t have enough home equity.<\/p>\n A further 5% didn\u2019t meet the bank\u2019s requirements.<\/p>\n It\u2019s a situation dubbed \u2018mortgage prison\u2019 \u2013 where you\u2019re stuck paying more on your home loan because you don\u2019t qualify for a lower rate home loan.<\/p>\n As Canstar notes, a lot of people think they\u2019re in mortgage prison.<\/p>\n But if you haven\u2019t tested the lock recently, now could be the time to try.<\/p>\n Even if you\u2019ve had a go at refinancing in the past, it\u2019s worth talking to us to see if you could qualify for a new loan today.<\/p>\n On the home equity front,\u00a0home prices increased nationally by 5.5%<\/a>\u00a0in 2024. So you could have more equity than you realise.<\/p>\n Also, if you have a solid record of regular repayments, some lenders may be willing to\u00a0stress-test refinancers<\/a>\u00a0using a loan serviceability buffer as low as 1% (below the standard 3%<\/a>).<\/p>\n The important thing is that you speak with us to get to know your options.<\/p>\n Well, that depends on how big your current home loan is, what your current interest rate is, and how much you reduce that rate by.<\/p>\nIf you haven\u2019t looked into refinancing since the start of higher interest rates, it might be time to ask yourself \u2018why not?\u2019 New research shows it could be time to try again \u2013 especially if you want to start 2025 off on the right foot.<\/strong><\/p>\n
What\u2019s holding borrowers back?<\/h3>\n
Why it could be time to revisit refinancing<\/h3>\n
How much could you save by refinancing?<\/h3>\n