Is it time to refinance?Wanting to give your finances a boost? Maybe you’re looking to refinance your mortgage?

Well, you’re not alone. Following a string of rate rises last year, borrowers are refinancing in record numbers, according to PEXA research.

And ABS finance and wealth spokesperson, Katherine Keenan, says recent data shows owner-occupier refinancing with different lenders remained at record levels in 2022, above $12 billion.

For many, mortgage repayments take the biggest chunk of the household budget which has become increasingly stretched by the rising cost of living.

We’ll fill you in on why it may be a good idea to refinance your mortgage, what to look out for, and how you can get a helping hand.

Why refinance?

If it’s been a while since you’ve revisited your mortgage, you could be paying a higher interest rate than you need to. This is commonly known as the loyalty tax.

It is common for lenders to offer the better rates to new customers in a bid to get their business. Since they already have your business, you’re often left in the dark about the latest deals in the market.

But by refinancing, you could have lenders offering sweet new customer deals to win you over again.

With the right offer, it can really pay off – refinancers saved on average $1,524 per year, according to 2022 PEXA data. Over three years, that adds up to an extra $4,572 in your pocket for renovations, savings, extra repayments, or whatever you like.

There’s no need to immediately switch to another lender to see savings. Sometimes refinancing or a little negotiating with your existing lender can go a long way! They may be open to offering you a deal to keep you on as a customer.