Home loans and refinancing

Written and accurate as at: 14 April 2022

Your home loan will likely be the largest debt you pay off in your lifetime.

Importantly, by taking a proactive approach—such as refinancing, if appropriate—you could reduce the amount of interest you pay and the life of the loan. In turn, freeing up cash flow sooner to direct elsewhere.

According to recent data*, a large number of borrowers haven’t refinanced in years. And, as loans age, the gap between what existing borrowers pay compared with what new borrowers pay widens.

Refinancing occurs when a borrower repays their home loan with one lender using the proceeds of a new home loan obtained from another. In this animation, we illustrate considerations around home loans and refinancing.

*ACCC. (2020). Home loan price inquiry: Final report. November 2020.