• How you could save by refinancing your home loan

    How you could save by refinancing your home loan

    What is refinancing?

    Refinancing is when you pay off your existing home loan by replacing it with a new home loan with a different home loan provider, often with a lower interest rate. The new home loan may also consolidate all your other debts into the one loan.

    Should you consider refinancing?

    You may be in a better position compared to when you first took out your home loan. Has the value of your home increased? Has your income increased? Have you paid off some of your loan? Or are you simply unsure if you’re on the best deal? At the end of the day, we all want to find ways to pay off our home loan faster.

    How could refinancing help you? 

    • A lower interest rate or reduced fees could help you pay off your home loan faster or give you some extra spending money.
    • Consolidating all debts into the one loan could make your repayments easier to manage.
    • Upgrading your home loan could give you access to features that better suit your current circumstances, such as being able to make extra repayments or redraws.
    • Borrowing additional funds could help you renovate your home, invest in property, or fund a major purchase. 

    What to be aware of


    • Refinancing often involves discharge costs and break costs that are payable when you discharge (your lender will be able to work out the total cost of discharging). These costs however, could be offset by the savings made as part of your refinanced loan. 
    • Refinancing also involves establishment costs such as Lender’s Mortgage Insurance.  Each situation is different depending on your circumstances and the loan or loans you have. Speaking to lending expert can ensure you understand all the costs involved as well as the benefits you could achieve through a refinance.
    • Consolidating your short term debt into your home loan may extend the loan term of the short term debt and could result in more interest payments over the loan term. You should obtain independent professional advice relevant to your financial circumstances.

    Speak with Graeme Plenderleith about your home loan options

    RAMS Home Loan Centre Melbourne Inner South is owned and operated by Melbourne South Financial Services Pty Ltd ABN 53 134 807 245. Credit Provider: Westpac Banking Corporation, ABN 33 007 457 141. AFSL and Australian credit licence 233714.


    About the author

    • Prahran - Graeme Plenderleith

      Principal of RAMS Melbourne Inner South, Graeme Plenderleith and his team of home loan specialists are passionate about helping people realise the great Australian dream of home ownership. 

      With over 30 years’ experience in financial services, Graeme has a unique understanding of mortgage and investment leading, particularly for those that are self-employed.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Graeme Plenderleith

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.