How much can you save by refinancing in 2024?
We estimate that the average person could save up to $6,996 a year by switching to a lower rate:- The average Australian home loan is now $641,143 (according to the ABS) - a record high!
- The average variable interest rate loan in Finder's database is 7.08%. The lowest available variable rate on the market is 5.69%.
- Assuming a 30-year loan term, if you switched to that lower rate your monthly repayments would drop from $4,301 to $3,718. That's a saving of $583 every month, or $6,996 a year.
Market update by Rebecca Pike – Finder's senior home loans writer
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Do you know if any of the lenders will re-finance pensioners? Both aged 60, and still have 15 years left on current mortgage
Hi Ros,
Thanks for the question.
I recommend getting in touch with a licensed mortgage brokerfor your home loan refinancing options. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.
I hope this helps,
Marc.
Hi Ros,
Thanks for reaching out.
It may be difficult to qualify for a refinance if you are pensioners as most lenders will review you as high-risk borrowers. However, your best course of action would be to speak to a licensed mortgage broker to discuss your refinance options. A broker can help you understand your borrowing capacity and they can draw upon a panel of lenders, including specialist or non-bank lenders, that may have more lenient eligibility criteria.
Ultimately, a broker will determine your propensity to repay the refinanced loan by taking into account your income sources, assets, credit history, and any existing debts that you have. This type of application will be treated on a case-by-case basis.
You may also make use of our guide to refinancing your home loans after you retire to help you know what to consider in refinancing and how to go about the process.
All the best,
Belinda
I have A mortgage in New Zealand and I wondered if I could refinance that mortgage in Australia. I live and work in Australia now and it costs money to transfer to and from New Zealand. Or is there a way I could get part of a loan, say 100000 to pay part of that mortgage off and pay it in Australia? Thanks
Hi Terry,
Thanks for reaching out.
Most Australian lenders prefer that the security for the home loan is based in Australia, so it may be difficult for you to refinance the mortgage in this case. However, your best course of action would be to speak to a licensed mortgage broker as they will be able to help you understand your refinancing and borrowing options.
To minimise the cost of transferring funds to and from New Zealand, you can compare a range of global money transfer providers to find one with competitive terms.
All the best,
Belinda
Hello,
My apologies up front for the length and amount of questions involved but I’m at the desperate stage. I am on the dsp, my husband is my career and on the carer’s pension and allowance. This is our only income. We would like to borrow $25000 for debt consolidation, home renovations and the purchase of a small second hand car. We owe approximately $155000 on our home loan and have had our home appraised by three separate agents as it is at $35000 – $36000. Our present home loan is with BankWest at 4.29% variable. The bank has given us this year at an interest only rate, but is unwilling to allow us to refinance because we are on pensions. Is there any financial institution that will either assist us in refinancing or give us a personal loan for $25000? We are wanting to do the renovations preparatory to hopefully putting our house on the market by November/December this year? We have already been turned down by Society One and NAB because our income is only from Centrelink pensions. I am at a loss to know where to turn now and would be very grateful for any assistance that could be provided? One other item to consider is that our VEDA credit scores are in the 700’s and 800’s respectively.
Thank you, very much
Shawn
Hi Shawn,
Thanks for your enquiry.
It may be difficult for you to refinance your home loan if you do not have a secondary source of income to supplement your Disability Pension.
You might be interested to refer to our guide to refinancing while unemployed which provides some useful tips about how you can improve your chance of being approved for a home loan refinancing application. You may want to consider requesting a copy of your credit file, clearing your existing debt (e.g. other personal loans or credit cards) and consider approaching non-bank lenders that may have more lenient eligibility criteria.
You may also refer to our helpful guide on how to refinance your home loan to consolidate debt.
You may also read more on home loans for Centrelink recipients and enquire with a mortgage broker to discuss your options. Be careful about over-applying for different home loans as this can negatively impact your credit file.
I wish you all the best.
Thanks,
Belinda
hi i have a investment property with a interest only loan but want to move into that property change the the loan as owner/occupy variable to pay the house off quicker i owe $247000 and is value at $310000 also would like to borrow $10000 to do go on a holiday what should i do
Hi Brad,
thanks for the question.
I would recommend contacting your lender and tell them about your plans to see what options they can offer you. Alternatively, you can compare home loans from new lenders and contact them to refinance.
I hope this helps,
Marc.
Can a bridging loan be refinanced if a person has no job?
Hi Moggy,
thanks for the question.
Unfortunately, most lenders will want to see borrowers with a steady income source in order to approve a refinance or any other type of loan.
I hope this helps,
Marc.