Unlocking your homes potential: A guide to refinancing your home loan

Can I Refinance My Home Loan?

Refinancing is like giving your home loan a makeover. It's an opportunity to find a better deal, whether it's lowering your interest rate, changing your loan term, or even accessing the equity you've built up. But before diving in, it's wise to assess your financial situation and goals.

Are you looking to reduce your monthly repayments? Do you dream of paying off your mortgage sooner? Or perhaps you have a renovation project you've been putting off? Refinancing can be the key to unlocking these possibilities.

With options like Qantas Money Home Loans, you can explore different refinancing packages tailored to your needs. From variable rates to fixed rates, there's a range of choices to suit your financial situation.

How often can you refinance your home loan? 

There is no rule as to how often you can refinance your home loan. Whether you are new to borrowing or have had a loan for 15 years, the most important thing is that you will need to meet the credit requirements of your lender, for example, your income and assets, as well as your usual credit history. Another thing to consider is the cost of refinancing; you’ll want to ensure that the cost of refinancing doesn’t outweigh the potential savings.

When can I refinance my home loan?

Timing is crucial when it comes to refinancing. While there's no hard and fast rule, several factors can influence the ideal moment to take the plunge.

Firstly, keep an eye on interest rates. If there's a significant drop in interest rates since you took out your original mortgage, it could be a prime opportunity to refinance and secure a lower rate. Additionally, improvements in your credit score or an increase in your home's value can strengthen your bargaining power with lenders.

Life changes can also prompt a refinancing strategy. Whether you've received a salary increase, welcomed a new family member, or are planning for retirement, reassessing your mortgage terms can align them with your current circumstances and future goals.

How soon can you refinance a home loan?

While there's no one-size-fits-all answer, there are some general guidelines to consider.

Most lenders recommend waiting at least six months to a year before refinancing your home loan. This time frame allows for sufficient seasoning of your mortgage, demonstrating to lenders that you're a reliable borrower. However, individual circumstances may vary, so it's essential to consult with financial experts to determine the optimal timing for your situation.

Home equity and the benefits of refinancing

Imagine your home as a piggy bank, and every mortgage payment you make is like dropping coins into it. Home equity is the treasure that accumulates over time as you pay off your mortgage and as the market value of your property appreciates. It's the difference between the current market value of your home and the outstanding balance on your mortgage.

For instance, if your home is worth $300,000 and you still owe $200,000 on your mortgage, your equity is $100,000. This equity can be your secret weapon when it comes to refinancing and could free up cash in the short and longer term for projects like renovations, a holiday or share trading.

One thing to keep in mind is that most banks won’t allow you to borrow the full $300K. They will generally apply a maximum Loan-to-Value Ratio (LVR) unless using additional security to increase the overall security value.

In Conclusion

Refinancing your home loan is like giving your financial future a fresh coat of paint – it breathes new life into your mortgage and opens doors to exciting possibilities and can be done at several intervals throughout the life of your loan. With a dash of careful planning, a sprinkle of market savvy, and the right lender by your side, you can navigate the refinancing journey with confidence.

So, whether you're eyeing that dream vacation, planning for retirement, or simply aiming to save some extra cash each month, refinancing with a Qantas Money Home Loan could be your ticket to unlocking the full potential of your greatest asset – your home. 

Discover a home loan that comes with a holiday every year

Imagine finding your dream property, then earning 100,000 Qantas Points^{^} on your home loan – every year for the life of the loan. This is just one of the great reasons to come on board with a Qantas Money Home Loan. Let's look at a few more things you can take advantage of:

• Competitive rates: A streamlined process means streamlined costs. Our digital application process means you may get a faster turnaround and competitive rates.

• Easy application process: Apply online to get an answer in minutes.

• Help when you need it: Our home loan experts are here to help with your application seven days a week.

Explore Qantas Money Home Loans today.

You have to be a Qantas Frequent Flyer member to apply for a Qantas Money Home Loan. This website contains general advice only. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.

^{^}Qantas Frequent Flyer members will earn 100,000 Qantas Points upon settlement of their Qantas Money Home Loan. Members will earn the annual bonus of 100,000 Qantas Points three months after the settlement anniversary of their Qantas Money Home Loan for up to 30 years. Both upfront and ongoing points will be credited to the member’s Qantas Frequent Flyer account within 8 weeks of the Qantas Points being earned, provided the loan is in compliance with the Qantas Money Home Loans Points Eligibility Policy, not in arrears or default and the loan is not the subject of hardship relief or assistance. In the instance of joint applicants, the Qantas Points by default will be awarded to the primary applicant annually unless you opt to either split the points between the secondary and primary applicant or award the points in full to the secondary applicant.