If you haven’t reviewed your home loan in the past couple of years, you could be leaving thousands of dollars on the table. With interest rates shifting and lenders competing harder than ever for new customers, refinancing activity across Australia has surged, and for good reason.
Recent data from the Australian Bureau of Statistics shows refinancing volumes jumped 20.9% year-on-year in mid-2025, as borrowers rushed to take advantage of rate cuts and more competitive loan products. For homeowners in Mandurah and across Western Australia, this trend signals an important opportunity: your current loan might no longer be your best option.
Why Refinancing Makes Sense Right Now
The mortgage landscape has changed dramatically over the past two years. Interest charges have fallen consistently following Reserve Bank rate cuts, with the ABS reporting a 3.8% drop in the September 2025 quarter alone.
This has created a window of opportunity for borrowers to secure better deals, reduce their monthly repayments, or restructure their loans to better suit their current circumstances.
But lower rates aren’t the only reason to consider refinancing. Your personal situation may have evolved since you first took out your loan. Perhaps you’ve built up equity in your property, your income has changed, or you’re looking to consolidate high-interest debts. All of these factors can make refinancing a smart financial move.
Five Clear Signs It’s Time to Review Your Loan
1. Your Fixed Rate Period Is Ending
When your fixed-rate term expires, your loan typically reverts to your lender’s standard variable rate, which is often significantly higher than the most competitive rates available in the market. Rather than accepting this automatic increase in your repayments, now is the time to shop around. Lenders frequently offer their best rates to new customers, meaning you could secure substantial savings by switching.
2. It’s Been Two Years or More Since You Last Reviewed
The lending market moves quickly. Credit policies change, new loan products emerge, and lenders adjust their rates to stay competitive. Even if your loan was excellent when you signed up, there’s a strong chance better options are now available. Features like offset accounts, flexible repayments, and redraw facilities have become more common and could help you manage your mortgage more efficiently.
3. Your Financial Situation Has Changed
Life doesn’t stand still, and neither should your loan. A new job, a pay rise, starting a family, or even reduced working hours can all impact what you need from your mortgage. If your circumstances have shifted, your loan structure should shift with them. You might need lower repayments to ease cash flow, or perhaps you’re now in a position to pay off your loan faster.
4. You’ve Built Up Equity in Your Property
Rising property values combined with consistent mortgage repayments improve your loan-to-value ratio (LVR). A stronger equity position can help you qualify for a lower interest rate or access better loan features. Most lenders offer their most competitive rates to borrowers with an LVR of 80% or less, so if you’ve crossed that threshold, refinancing could unlock significant savings.
5. You Want to Consolidate High-Interest Debt
If you’re juggling credit card debt, personal loans, or car finance alongside your mortgage, consolidating these into your home loan can simplify your finances and reduce your overall interest costs. By rolling high-interest debts into your mortgage, which typically carries a much lower rate, you could save thousands in interest charges while managing just one repayment.
The True Cost of Refinancing
While the benefits of refinancing are clear, it’s important to understand the costs involved. Switching lenders isn’t free, and you’ll need to ensure the savings outweigh the expenses.
Common refinancing costs include:
- Application and establishment fees charged by your new lender
- Valuation fees to assess your property’s current market value
- Discharge fees from your existing lender
- Lenders Mortgage Insurance (LMI) if your LVR exceeds 80%
- Break fees if you’re exiting a fixed-rate loan early
For most borrowers, these costs are worth it if you’re securing a significantly lower rate or accessing better features. However, it’s essential to calculate the break-even point – how long it will take for your savings to exceed the switching costs.
Special Considerations for Investment Property Owners
If you own an investment property, refinancing becomes more complex but potentially more rewarding. The tax implications alone require careful consideration.
Many refinancing costs for investment properties are tax-deductible, including application fees, valuation fees, and legal costs. These expenses are typically claimed over five years or the loan term, whichever is shorter. However, the rules vary depending on how you use the refinanced funds.
If you’re releasing equity to fund renovations or purchase another investment property, the interest on that portion of your loan may be tax-deductible. But if you’re using the funds for personal purposes, such as buying a car or renovating your own home, that portion of the interest typically isn’t deductible.
The key question for property investors isn’t just “Can I refinance?” but “Should I refinance?” Accessing equity through refinancing might seem attractive, but it increases your overall debt and could limit your future borrowing capacity. Before proceeding, consider whether refinancing aligns with your long-term investment strategy.
How to Make Refinancing Work for You
Refinancing isn’t a one-size-fits-all solution. The right approach depends on your goals, your current loan structure, and your financial circumstances.
Start by clarifying what you want to achieve. Are you looking to reduce your monthly repayments? Pay off your loan faster? Access equity for renovations or investment? Your objective will determine which loan features and structures make the most sense.
Next, check your credit score. While requirements vary between lenders, a strong credit score improves your chances of approval and helps you secure better rates. If your score needs work, focus on paying bills on time, reducing high-interest debts, and correcting any errors on your credit report before applying.
Finally, don’t assume your current lender won’t negotiate. Sometimes, simply asking for a better rate, known as repricing, can deliver savings without the hassle and cost of switching lenders. However, lenders often reserve their most competitive rates for new customers, so it pays to compare your options.
Get Expert Help
Navigating the refinancing process can feel overwhelming, especially when you’re trying to balance competing priorities and understand complex fee structures. That’s where working with an experienced mortgage broker makes a real difference.
At Peel Finance Brokers, we help Mandurah homeowners and property investors compare dozens of lenders to find the loan that best suits their needs. We handle the paperwork, negotiate on your behalf, and ensure you understand exactly what you’re signing up for, with no hidden surprises.
Whether you’re looking to reduce your repayments, access equity, or simply ensure you’re on the best possible rate, we’re here to guide you through every step of the process. If you’re ready to see if refinancing could save you money, contact our team to arrange a free consultation.
Related posts:
- The State of the Rental Market and How it Affects Your Borrowing Capacity
- When Is a Good Time to Refinance?
- Why Use a Mortgage Broker for Your Home Loan?
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.