If you’ve owned your home for a few years, there’s a good chance you’ve built more equity than you realise.
With property values remaining strong across much of Australia, many homeowners now have access to refinancing opportunities that may not have been available when they first purchased.
A simple home loan review could help reduce your interest rate, lower your repayments or unlock more competitive loan features.
Property Values Have Increased Across Australia
According to PropTrack (www.proptrack.com.au), property values continued to perform strongly over the year to June.
- House prices increased across 85% of Australian suburbs.
- Unit prices increased across 90% of Australian suburbs.
Although property prices eased slightly during the June quarter, many homeowners still hold significantly more equity than they did just 12 months ago.
Why Equity Matters
Equity is the difference between your property’s current value and the amount you still owe on your home loan.
As your property increases in value and your loan balance reduces, your equity grows.
For many borrowers, reaching 20% equity is an important milestone because it may allow you to refinance without paying Lenders Mortgage Insurance (LMI).
That can significantly reduce the overall cost of changing lenders.
Could Your Current Home Loan Be Improved?
Competition between lenders remains strong.
Many banks and lenders continue offering competitive interest rates and loan features to attract new customers.
If your circumstances have changed since taking out your original loan, refinancing could potentially help you:
- Reduce your interest rate.
- Lower your monthly repayments.
- Access improved loan features.
- Consolidate debt.
- Better match your loan to your current financial goals.
Even relatively small reductions in interest rates can result in meaningful savings over the life of your loan.
Do You Need to Change Lenders?
Not necessarily.
Sometimes reviewing your home loan can lead to improved pricing without switching providers.
The important step is knowing your options.
Is It Time for a Home Loan Review?
Many borrowers don’t realise how much their refinancing options have improved.
If you’ve built additional equity, received a pay rise or simply haven’t reviewed your mortgage in several years, now may be a good time to compare your current loan against what’s available.
A home loan review doesn’t commit you to refinancing. It simply gives you the information needed to make an informed decision.
How Home Loans Australia Can Help
At Home Loans Australia, we help Australian homeowners review their current mortgage, compare lenders and explore refinancing opportunities that align with their financial goals.
Whether you’re looking to reduce repayments, access better loan features or simply understand your options, we’re here to help.
Frequently Asked Questions
What is home equity?
Home equity is the difference between your property’s current market value and the amount you still owe on your mortgage.
Why is 20% equity important?
Many lenders allow borrowers with at least 20% equity to refinance without paying Lenders Mortgage Insurance (LMI), subject to lending criteria.
Can refinancing lower my repayments?
Depending on your circumstances, refinancing may provide access to lower interest rates or loan features that help reduce repayments.
Should I refinance with my current lender or a new one?
Both options may be worth considering. A home loan review can help compare what’s available before making a decision. Home Loans Australia can do the work for you in finding what is best for your individual circumstances.
How often should I review my mortgage?
Many experts recommend reviewing your home loan every one to two years, or whenever your financial circumstances or market conditions change.
