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When and How Often Should You Refinance?


Indeed, there are a lot of benefits of refinancing your home loan, both personal and financial. But the question is, how often should you take advantage of those benefits? Perhaps more importantly, when should you refinance your mortgage? In this post, Shore Financial shares some of the answers to your questions about refinancing home loans in Australia:

Why Should You Refinance?

The biggest reason why you should refinance your home loan is to enjoy a new and better loan that can significantly reduce your monthly mortgage payments. By refinancing, you can also:

  • Help avoid interest rate hikes and keep your repayments low
  • Give an extra buffer of cash to help you with those home emergencies
  • Enjoy more flexibility to make bigger end-of-month repayments
  • Pay off your home loan sooner, and save on interest in the long term
  • Get more money to invest, or fund more personal savings

How Often Can You Refinance?

You can refinance your home loan even more often than you might think. The mortgage rate you get for your refinance will depend on your existing loan. Generally speaking, you should refinance either in:

  • Two months to one year after your previous refinance
  • One year to three years after your previous refinance
  • Three years to five years after your previous refinance
  • Five years after your previous refinance

This will give you the best chances of obtaining a low-interest rate mortgage, and paying as low a monthly mortgage payment as possible.

When Should You Think About Refinancing?

There are some other key times to think about refinancing your home loan, especially if you’re paying more than you need to. Some of the most important include:

  • When you have completed the home loan before your schedule
  • When you are planning to move cities, states, or countries
  • When your home loan interest rate is about to go up
  • When you need to make a big loan payment
  • When you want to start investing in something else
  • When you want to pay off your mortgage in a shorter time

What Should You Consider Before Refinancing Your Home Loan?

There are a few important things to consider before refinancing your home loan, because it may not always be the best thing for you. Discuss these with your financial advisor to make sure that it’s the right choice for you:

  • Talk about what a refinance will cost you, including the professional fees and your other transaction costs
  • Ensure that your new home loan is still profitable for you, once you factor in the loan interest rate, fees, and other elements
  • Calculate how long you’ll be working and using your home loan. If you’re planning to sell your home in a few years, refinancing may not be the best option for you, as you may have to end up paying out your home loan early.
  • Consider the changes in your other finances and the potential impact on your home loan repayments. 


Refinancing home loans can be a great financial move, provided that you do it the right way. It can be a great way to boost your savings, improve your financial stability and take advantage of market conditions. All you need to do is to determine how often you should refinance when it’s most beneficial to refinance, as well as whether you’re ready to refinance.

If you need to know more about refinancing loans in Australia, Shore Financial can help you. Allow our expert brokers to help you find the right refinancing loan for you. Get in touch with us today and enjoy a complimentary loan health analysis from Shore Financial!


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