Refinancing Your Home Loan in Gladstone

Is Your Home Loan Costing You More Than It Should?

When was the last time you reviewed your home loan? If it’s been more than a year or two, there’s a good chance you’re paying more than you need to.

Lenders often reserve their best rates for new customers, leaving loyal existing customers on higher rates. A refinance could save you thousands - or it might turn out you’re already on a competitive deal. Either way, it’s worth checking.

Signs It Might Be Time to Refinance

Consider a loan review if any of these apply:

• Your fixed rate is ending - Variable rates may be higher than your current fixed
• You haven’t reviewed in 2+ years - Rates and products change constantly
• Your circumstances have changed - Income up, debts down, or equity increased
• You want different features - Offset account, redraw, or split options
• You’re paying more than 6.5% - Many borrowers can do better
• You have multiple debts - Consolidation could simplify and save

The Refinancing Math: Is It Worth It?

Refinancing isn’t always the right move. There are costs involved, and the savings need to outweigh them.

Example scenario:

• Current loan: $500,000 at 6.8%
• New rate available: 6.2%
• Annual savings: ~$3,000
• Refinancing costs: ~$800
• Break-even: ~3 months

In this case, refinancing clearly makes sense. But if the savings were smaller or the costs higher (e.g., large break costs on a fixed loan), the math might not stack up.

We’ll calculate the full picture for your specific situation before recommending any action.

What Costs Are Involved in Refinancing?

From Your Current Lender

• Discharge fee: $150-$350 (to release your current mortgage)
• Break costs: Only if you’re on a fixed rate (can be significant)

Government Fees

• Mortgage registration: ~$150-$200
• Transfer duty: Usually not applicable for refinancing

Potential New Lender Costs

• Application fees: Many lenders waive these
• Valuation fees: Often waived or covered by new lender
• Legal/settlement fees: ~$200-$400

Total typical cost: $500-$1,000 (unless break costs apply)

Fixed Rate Break Costs: The Hidden Trap

If you’re currently on a fixed rate loan and want to refinance, be aware of potential break costs. These can be substantial - sometimes tens of thousands of dollars.

Break costs occur because when you fixed your rate, the lender essentially locked in their funding at that time. If rates have fallen since, they incur a loss by letting you exit early.

Before breaking a fixed loan:

• Request a formal break cost quote from your lender
• Calculate whether savings over the remaining fixed term exceed the break cost
• Sometimes it’s better to wait until the fixed term ends

We’ll help you understand whether breaking your fixed loan makes financial sense.

Debt Consolidation: Should You Roll Debts Into Your Mortgage?

Consolidating high-interest debts (credit cards, personal loans, car loans) into your mortgage can significantly reduce your repayments. But it’s not always the best option.

Potential benefits:

• Lower interest rate (home loan rates vs credit card rates)
• Single, simple repayment
• Improved cash flow

Potential risks:

• Paying credit card debt over 30 years costs more long-term
• Puts unsecured debt against your home
• Can enable further debt accumulation

Our approach: If we consolidate debt, we recommend structuring your loan so the consolidated portion is paid off faster (e.g., 3-5 years) rather than spreading it over your full loan term.

Accessing Equity When You Refinance

Refinancing is also an opportunity to access equity for:

• Home renovations
• Investment property deposits
• Other financial goals

If your property has increased in value or you’ve paid down significant debt, you may have usable equity available. We can assess this as part of your loan review.

What to Expect From Our Free Loan Review

Here’s how our refinancing process works:

1. Information Gathering We’ll ask about your current loan, rate, repayments, and what you’re looking to achieve.

2. Rate Comparison We compare your current deal against what’s available from 70+ lenders.

3. Recommendation We’ll tell you honestly whether refinancing makes sense - sometimes the answer is “your current loan is fine.”

4. Application & Settlement If you proceed, we handle everything - application, document gathering, lender liaison, and settlement coordination.

Ready for a Free Loan Health Check?

There’s no obligation and no cost to find out if you could be paying less. Book a free loan review and we’ll assess whether refinancing could benefit you.