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Is now the time to refinance?

2 February 2021 | 3 min read

If you’ve not yet checked your home loan for potential savings opportunities, refinancing could help you improve your cash flow and pay less interest. You might be able to unlock equity that’s tied up in your property or access a lower interest rate and reduce your repayments.

What is refinancing?

Refinancing is essentially changing the loan attached to your home. You might switch lenders, or switch to a different loan product or package with your existing lender.

Refinancing may help you access a lower interest rate, unlock equity in your home for a renovation or big ticket purchase, or access features like offset and redraw facilities.

When you refinance, it’s also a good time to consider other aspects of the loan, such as whether you can make extra payments to pay off the loan sooner. And make sure your lender has the service and support you want. For instance, decide whether you want access to a branch network. It’s also a good idea to check out the lender’s website, app and other digital tools and non-digital tools such as phone banking so you understand the level of service you’ll receive with your loan.

When you go to refinance, you will need many of the documents you produced when you took out your existing loan – proof of income and assets and details of any of your other financial obligations. There is paperwork involved, but it’s well worth it if it means you and your family end up reducing your loan repayments.

When should I refinance?

There are many different opportunities for you to consider refinancing. Here are some popular ones.

When you haven’t thought about your home loan in a while

If you’ve been paying off your home loan for some years, or the value of your home has increased, then your loan to value ratio (LVR) may have decreased and you could be eligible for an interest rate reduction.

At the end of a fixed rate term

The end of a fixed rate term is a natural point at which to refinance. Sometimes your bank will roll over the loan. Or you may need to re-negotiate the loan’s terms at this point.

When interest rates change

This is a good time to talk to your bank about whether it can offer you a better rate for your loan.

At moments that matter

There’s lots of times throughout life when it can make sense to refinance. You might want to renovate your home, pay for a big event, a wedding or use the money to pay for school fees.


Sometimes it can make sense to refinance to consolidate debt into a single loan. For instance, you may have a credit card, a car loan and a personal loan and negotiate with your bank to roll them all into one loan, so you pay a lower overall interest rate and reduce your total repayments.

Is it time to refinance?

Ultimately, the best time to refinance is when you discover your current home loan no longer suits your goals or circumstances. A free, Bendigo Bank home loan health check can help you explore whether your home loan is still right for you and explore what could be possible with refinancing. It’s free to anyone, whether you bank with us or not. Check the health of your home loan now.

Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable product disclosure statement(s) on our website before acquiring any product.


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Bendigo and Adelaide Bank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation and the Traditional Custodians of the land where we live, learn and work. We pay our respects to Elders past and present as it is their knowledge and experience that holds the key to the success of future generations.

Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

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