Refinancing your home loan in 2025: Is now the right time?
- Jaime Bedoya
- Jun 27
- 3 min read
Updated: Jun 29
Why refinancing is back on the table in 2025
In recent years, many Australians have transitioned from ultra-low fixed interest rates to a higher-cost lending environment. As household budgets tighten under cost-of-living pressures, refinancing has re-emerged as a useful strategy to improve cash flow, pay off loans faster, or access equity for other goals.
Some time ago we covered the nuts and bolts of refinancing, but in this article I cover some considerations as we enter the new financial year. You may be asking “is 2025 a good time to refinance my home loan?”
The answer depends on your current loan, your financial goals, and what lenders are offering right now. Let’s explore the key factors.
1. Understand your current interest rate and loan structure
The first step in any refinancing decision is clarity.
Ask yourself the following:
what interest rate am I currently paying?
is it fixed, variable, or a split loan?
how much time remains on my loan term?
am I being charged monthly or annual fees?
Action steps
Check your home loan statement or banking app for your current rate.
Use comparison tools like Canstar or RateCity to benchmark your rate.
Request a “loan health check” from your lender or a broker to uncover hidden fees or better deals.
2. Compare the market and negotiate with your lender
Competition among lenders remains strong, especially for borrowers with a healthy credit profile.
What to look for:
Lower interest rates (ideally below 6% for owner-occupiers in 2025).
Cashback offers for switching (though be wary of the fine print).
Offset accounts or redraw facilities that align with your cash flow needs.
Jaime‘s Tip
If you find a better deal, use it as leverage to negotiate with your current lender. Many are willing to match or better a competitor’s rate to keep your business.
3. Know the costs of refinancing
Refinancing isn’t free - but it can be worth it.
Typical costs include:
Discharge fee from your current lender (usually $150–$400)
Loan application fees (sometimes waived)
Property valuation fees
Government mortgage registration or transfer fees
Lender’s Mortgage Insurance (LMI) if borrowing more than 80% of your property’s value
Rule of thumb: If you can save 0.5% or more in interest and plan to stay in your home for 3+ years, refinancing may be worth it despite the upfront costs.
4. Consider your broader financial goals
Refinancing isn’t just about chasing a lower rate. It can also support long-term financial planning goals — especially when coordinated with your adviser.
You might refinance to:
Consolidate high-interest debts like credit cards or personal loans
Fund renovations or property investment
Reduce loan term and pay off your mortgage faster
Switch to a loan with features that better suit your lifestyle
A financial adviser can help ensure your refinancing strategy aligns with wealth-building, retirement, or estate planning goals.
Case study: efinancing saved thousands in credit card debt repayments
The Aspire2Wealth advantage
Our Perth-based brokers work with a large panel of banks to help you understand your options and decide if refinancing is right for you. We do this without the jargon or pressure.
Whether you want to lower repayments, access equity, or boost your long-term wealth, we’ll guide you through it with confidence and clarity.
Sources
Disclaimer
Aspire2 Wealth Advisers Pty Ltd ABN 42 125 897 903 is an authorised representative and credit representative of Charter Financial Planning Limited ABN 35 002 976 294, AFSL and Australian Credit Licence No. 234665. This website contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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