Refinancing a mortgage can be tricky but totally worth it.

Lately we’ve had lots of clients contact us about refinancing. In fact, we arranged more refinances last month than we did for the whole of last year.

It sounds straightforward but there are some things to watch out for.

We’ve talked before about the process of refinancing a home loan. It’s not as simple as you might think.

Even if you and I have known each other a long time, we still need to work through a lot of things.

For instance

The laws and banking regulations, which may have radically changed since the last time you got a home loan.
The banks’ appetite for risk. This varies from year to year and even month to month.
What’s going on in your life. Have you got married, split up, started a family, changed jobs or otherwise had a change in your circumstances?
Your future goals and needs.
Has your income gone down, or your monthly expenses gone up?

We need to document this, and more. It’s because the government wants to make sure advisers aren’t encouraging their clients to move loans simply to generate new commissions. So we need evidence on file to show why every decision was taken.

It’s all about doing what’s best for the client – which is a philosophy we totally support.

Taking all that into account, here are some things that can make refinancing the right move.

Are you on a high rate but can' get a decent fixed rate from your bank?

With the current cost of living, many people are looking to reduce their monthly outgoings. So they ask their bank for a new rate, and are underwhelmed by

what’s offered.

The most common issue is that household expenses have increased while income has not kept pace. In this high-inflation era, borrowers may look to lighten

the load by extending a loan term or going interest-only for a while. They approach their bank and don’t get a positive response – so they call us.

If that’s the case, we can review what’s out there in the market. Even with all the upheaval refinancing can generate – including the need to go through a full

approval process where the new lender will assess all your spending as well as your credit record – it can still be worth it if you end up saving money every

month.

Is there a different type of loan that might suit you better - but which isn't available from your current bank?

Home loans come in many different flavours. For instance, there are loans that offer a redraw facility, which can be useful for some people.

During your mortgage review we’ll dig into what matters to you. If we think you can achieve a better result with a different type of loan, it might be worth

refinancing.

The issue is, we won’t know until we’ve explored your wants and needs, as well as what’s happening with the market. So we need some one-on-one time with

you.

Beware of juicy 'carrots'.

Some banks offer the incentive of a cash contribution, which can lead to clients wondering if they should refinance.

The answer is, ‘maybe, maybe not.’

These attractive offers may come with costs, which we will have to take into consideration. Once again, it’s something we need to discuss after looking at all

the relevant facts.

The good news is that it costs you nothing to call us and find out.

Do you know someone doing it tough? Put them in touch

We’re here for all our clients who want to review their loans and insurance at any time. And we’re also available to give advice to your friends and family who might appreciate a fresh set of eyes.

The current economic climate has put the squeeze on a lot of people. If you know someone who could benefit from a loan review, put them in touch.

It’s not about making a sale or earning a commission. If they already have the right loan, we’ll give them that feedback.

We simply want to help people figure out if they’re set up to achieve their goals.

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by Sue Tierney • 7 May 2025

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