Refinancing Your NSW Property: When It Makes Sense and How to Do It

Refinancing can be a smart financial move if you’re looking to save money, reduce repayments, or unlock equity in your home. In this step-by-step guide, I’ll walk you through when refinancing makes sense, how to approach it, and what lender considerations you should keep in mind. I’ll also share real savings examples to show you the impact refinancing can have.

When Does Refinancing Make Sense?

Refinancing isn’t just about chasing the lowest interest rate. It’s about reshaping your loan so it fits your financial goals. It may be worth considering if you want to:

• Secure a lower rate: Even a 0.5% drop can save thousands over the life of a loan.
• Reduce monthly repayments: Free up cash flow to improve your lifestyle or invest.
• Consolidate debts: Roll high-interest debts (like credit cards) into one manageable repayment.
• Access equity: Use the value in your property for renovations, investments, or other goals.

Step-by-Step Guide to Refinancing in NSW

1. Review Your Current Loan
   Look at your current interest rate, fees, and remaining loan term. Compare it against market options.
2. Check Your Equity
   Most lenders require at least 20% equity for the best refinance deals. If your property has grown in value, you may be in a stronger position.
3. Assess Your Goals
   Decide what you want from refinancing: lower repayments, shorter loan term, or equity release.
4. Compare Lenders
   Don’t just go with your current bank. A mortgage broker can access multiple lenders and products to find the right match.
5. Submit Your Application
   Be ready with documents like payslips, bank statements, and property details.
6. Loan Approval and Settlement
   Once approved, your new lender pays off your old loan and your new repayments begin.

Real Savings Example

Let’s say you have a $600,000 loan in NSW with an interest rate of 6.5%. If you refinance to a 5.9% rate, your repayments could drop by around $190 per month. Over five years, that’s more than $11,000 in savings.

That’s money you can redirect toward building your property portfolio, paying off your loan faster, or simply easing household expenses.

Lender Considerations

When choosing a lender, don’t just focus on the interest rate. Consider:

• Ongoing fees and charges
• Flexibility (offset accounts, redraw options)
• Fixed vs. variable rates
• Loan features that suit your goals

Refinancing is about the whole package, not just the headline rate.

Final Thoughts

Refinancing your NSW property can be a powerful tool to save money, unlock equity, and achieve financial freedom faster. But timing, lender choice, and understanding your long-term goals are key.

Before making a move, make sure you also read my post on Top 5 Mistakes NSW Borrowers Make That Delay Loan Approval. Avoiding these pitfalls can save you weeks of waiting and frustration.

If you’d like tailored guidance, reach out to me today. As a mortgage broker, I’ll compare multiple lenders and explain your options in plain English