7 Signs It Might Be Time to Refinance (and 3 Times to Wait)

Many people stay with the same lender for years, mostly because switching feels like hard work. But your loan is probably the biggest bill you have, so it is worth a check-up now and then. Here is how to tell if it is time.

Seven signs it could be worth refinancing

1. You have not looked at your rate in two years or more. Lenders often give their best rates to new customers, and long-standing customers can drift to higher ones.
2. Your fixed rate is about to end. You may be moved to a higher variable rate, so it pays to compare before that date.
3. Your home has gone up in value or your loan has gone down. If you now owe less than 80% of the home’s value, you may qualify for sharper pricing.
4. Your income has risen or your circumstances have improved. A better position can open doors to better loans.
5. You are missing features you want, such as an offset account, redraw or the ability to split your loan.
6. You want to pull your debts together into one loan, to simplify repayments.
7. You are not happy with the service. You should be able to get answers without a fight.

Three times you may want to wait

1. You are on a fixed rate with a large break cost. Leaving early can mean a hefty fee. Sometimes it is cheaper to wait until the fixed term ends.
2. Your equity is thin. If you owe more than 80% of the home’s value, a new lender may charge LMI, which can wipe out any saving.
3. Your credit or income has taken a hit. A new lender will check your position again, and it may be tougher than when you first borrowed.

How to tell if it is really worth it

A lower rate on its own does not make a refinance worthwhile. You need to compare the saving with the cost of switching. The next article in this series shows you how to do the sum. In short, you divide the one-off costs by your monthly saving, and that tells you how many months it takes to get your money back.

Your next steps

1. Find your current rate, loan balance and any fixed-rate end date.
2. Estimate your home’s current value.
3. Ask for a review. A broker can compare lenders for you. Richard doesn’t charge you a fee. He’s paid by the lender.

Sources and when we checked

Figures checked on 16 October 2026. Sources: Reserve Bank of Australia (cash rate decisions in 2026, including 29 September 2026); Canstar. Outcomes depend on your own situation and the lenders compared. Rules, rates and thresholds can change, so confirm with the official sources or a broker before you act. This article is general information only and is not personal advice.