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We can help you grow a healthier financial future by refinancing home loan.
At Borro™, we understand that homeowners might choose to refinance their home loan for a variety of different reasons. Perhaps you need to consolidate personal debt. Maybe you’re planning to purchase an investment property or renovate your existing home. Or you could simply be looking to save money by switching to a more competitive interest rate. No matter the reason why, the team at Borro™ can help you grow a healthier financial future by refinancing home loan.
It’s a reality that everyone’s financial situation will evolve over time. What might have been right for you a year ago might not be the next. This is why we believe everybody should review their home loan interest rates annually. An annual home loan check-up will ensure you’ve still got the best mortgage product to suit your needs and that you’ve still got a competitive interest rate. By regularly reviewing your home loan, we can potentially save you thousands of dollars in interest while also keeping the loan term the same or even reducing it (so you can pay off your home and be mortgage-free even sooner!).
We can help you restructure your finances, outlining the best way for you to refinance, come out in front and achieve great savings. Begin the process of finding a better deal by contacting us today on 1300 1 borro™ or email
Australia’s Refinance Boom
Australia is in the midst of a refinance boom, driven by COVID-led economic uncertainty and record-low interest rates. According to data from the Australian Bureau of Statistics (ABS), lenders processed around 472,597 refinance home loans in Australia between March 2020 and March 2021. And there’s no indication that this focus on refinancing is going to end any time soon. The ABS calculated that $14.88 billion worth of refinance home loans were approved in May 2021, a 76% increase from the pre-pandemic era of March 2019.
What is Refinancing?
But what exactly is refinancing? Basically, it means taking out a new home loan to pay off your original mortgage. There are a range of reasons why borrowers choose to refinance but it’s usually because the new loan will result in a better deal for the borrower, such as a lower interest rate, better loan features or access to equity.
This renewed focus on refinancing has led to a lot of questions from homeowners in Queensland. How much can you really save by refinancing? How often should you refinance a home loan in QLD? What’s the home loan loyalty tax, and how can you escape it? And who can you trust to help you get the best possible refinance home loans in Australia?
Can Refinancing Save You from the Home Loan Loyalty Tax?
Homeowners are often encouraged to refinance home loans, but many still wonder what the big deal is. After all, the reasoning goes, if you did your homework before you took out the loan, and you know you got an excellent deal, why bother changing? The answer lies in what’s commonly referred to as the home loan loyalty tax. This term describes the higher interest rates that an existing customer is often charged compared to a new customer.
The practice of charging existing customers more was highlighted by the ACCC Home Loan Price Inquiry, which released a final report in late 2020. This report confirmed that borrowers with older home loans are paying significantly more interest than what they would be paying if they were to refinance. The older the home loan, the more a borrower can expect to save by refinancing.
What Are the Benefits of Refinancing Home Loan?
There are a number of benefits that can come with a refinance home loan in QLD. These include:
Getting a better interest rate: Interest rates are substantially lower than they were even just 2 years ago. By refinancing, you can access a better interest rate, which could potentially save you tens of thousands of dollars over the life of your loan.
Accessing equity: Equity is the difference between what your property is worth and how much you have remaining on your home loan. Refinancing can help you access this equity, which can then be used to fund a renovation, buy a new car or even as the deposit on an investment property purchase.
Consolidating debt: Borrowers with high levels of personal debt may struggle to balance multiple monthly payments with cripplingly high interest rates. Refinancing will enable you to consolidate all of your debt, resulting in a single, manageable repayment and the lowest possible interest rate.
Accessing better loan features: Many borrowers find that their financial situation changes over time. The loan features that you chose as a first home buyer may no longer be suitable, and a lack of features could actually be holding you back from reaching your financial goals. When refinancing, you’ll be able to choose a loan product that includes the most suitable features for your current situation.