Why 1 in 2 homeowners are wary of speaking to their bank about refinancing

As mortgage interest rates hit record lows, Australians are wasting no time securing the best possible home loan deal. In fact, two out of five homeowners are either in the process of refinancing or are considering making the move to a new loan.

Article published 21 January 2021

The refinancing process is easy. The challenge is being confident you’re getting the best home loan deal for your needs. And Mortgage Choice research shows that over 1 in 2 homeowners are wary about approaching their bank for a refinance out of concerns they won’t be advised if they could get a similar or better home loan deal elsewhere.1

Brokers work with a variety of lenders

There are other reasons why your Mortgage Choice broker is the person to speak to about refinancing. Banks know a lot about their own home loans. But no matter how big the bank, their staff can’t be expected to be familiar with the hundreds of other loans available elsewhere.

It’s not just about knowing competitors’ interest rates. Each lender has slightly different criteria around who they’ll lend to - and how much they lend.

As your Mortgage Choice broker works closely with over 25 lenders, they are up to speed on each lender’s rates, fees, special offers, borrowing limits and all the information your broker needs to make an informed recommendation on which loan and lender is right for you.

Long story short, when you head to your bank about a home loan refinance, you won’t be getting the complete picture on what other lenders are offering. And that can mean, missing out on the full savings potential of switching to a new loan.

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If you haven't reviewed your home loan in a while, you could be entitled to more savings than you realise.

Your broker works in your best interest - not the banks’

With access to a wide panel of lenders, your local Mortgage Choice broker knows what's available across the market, and which loans you qualify for. 

Your broker will  explain why a particular loan is being recommended. And because Mortgage Choice brokers get paid the same regardless of which lender you choose, you can be confident he or she always works in your best interests.

3 benefits of refinancing your broker could help you unlock

Don’t assume you have a good value loan - know it for sure! If you've had the same loan for a few years, there could be scope for big savings. Curious? Check out how these local Mortgage Choice customers saved $1,000 a month by refinancing!

The potential savings of refinancing could free up valuable extra cash to help pay off your loan sooner. It could cut thousands of dollars (and years) off your home loan! Take a look at our 6 tips on how to become mortgage-free sooner.

Refinancing is a way to tap into equity, providing low cost funds to buy an investment property, renovate, build and more. How much equity you can use will vary between lenders - another good reason to talk to your local Mortgage Choice broker. Find out more about accessing your home equity here.

Now’s not the time for a ‘she’ll be right’ approach to your home loan!

Too many Australians continue to pay more than necessary by sticking with their current home loan2. With interest rates at all time lows, it’s a fair bet you could get a better deal on your home loan.

One simple step can show if you could save Call your Mortgage Choice broker today or get started with our online quick quote!

You might also be interested in:

What’s really involved in a refinance?

It can be a smart way to help better manage your money and ensure that your loan is still suited to your current needs. But what is refinancing and how does it work? Here we lift the lid on how a refinance works and reasons to consider doing it.

5 benefits of refinancing

Thankfully, refinancing doesn’t have to be a daunting process, in fact you may find it surprisingly effortless as your Mortgage Choice broker does most of the legwork for you and provides you with the expert advice you need along the way. Check out our 5 benefits of refinancing here.

How this family saved $1000 a month by refinancing their home loan

Lex and Sarah knew rates were at an all time low, so they decided to give their local Mortgage Choice broker a call. Check out Lex & Sarah’s story in their own words.


Refinancing info centre



Posted in: Refinancing


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Refinancing guide

Considering refinancing? Our guide explains the reasons, costs and steps involved in refinancing your home loan.


Download now

1 https://www.mortgagechoice.com.au/about-us/media-centre/media-releases/over-half-of-homeowners-believe-banks-won-t-act-in-their-best-interest-when-it-comes-time-to-refinance/
2 ACCC - https://www.accc.gov.au/focus-areas/inquiries-ongoing/home-loan-price-inquiry/final-report