Refinance your way to big dollar savings

Refinance your way to big dollar savings

Changing your home loan might be the last thing on your mind, but if you’re willing to spend an hour or two researching your options, you could save thousands of dollars.

The key question you need to ask yourself is ‘can you get a better home loan package with another lender, or even without having to switch lenders?’

What can you save?

A good place to start is by comparing interest rates against some of the top variable options available at a financial comparison site, and you’ll get an idea of how much you could save.

To determine how much you could potentially save by switching to a lower interest rate, try RateCity’s mortgage calculator. But before you make the switch to another lender, discuss these rates with your existing lender – you may be surprised at how willing they are to negotiate to keep your business!

Also look at any savings you might make by consolidating other debt and switching to lower-rate finance options, because interest paid on multiple loans and credit cards can be costly and confusing.

Try our Mortgage Calculator:


Fees and charges

Fees and charges will depend on your home loan and circumstances, such as whether you are on a fixed or variable rate and how long is left to run on your contract.

You may also be faced with establishment fees when setting up a new home loan, as well as exit fees if you financed your existing mortgage before 1 July 2011. Exit fees can run into the thousands of dollars, so it’s certainly worth crunching the numbers before you refinance.

Refinancing home loans with no up-front fees:


Top tips for refinancing

Refinancing your home loan is not an easy task, but there are some steps you can follow to ensure you get the best deal:

  1. Know exactly what you want in a new home loan
  2. Know what has and hasn’t worked for you in your current home loan
  3. Look at the costs involved in leaving your current lender
  4. Understand what the new lender can offer you, including any add-on features

Borrowers are in a great position to bargain for a better deal, so take your time to do your research, compare home loans and negotiate your way to a better home loan package.

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Learn more about home loans

Mortgage Calculator, Property Value

An estimate of how much your desired property is worth. 

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

What is appraised value?

An estimation of a property’s value before beginning the mortgage approval process. An appraiser (or valuer) is an expert who estimates the value of a property. The lender generally selects the appraiser or valuer before sanctioning the loan.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

Mortgage Calculator, Loan Purpose

This is what you will use the loan for – i.e. investment. 

Monthly Repayment

Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.

How personalised is my rating?

Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time. 

What factors does Real Time Ratings consider?

Real Time RatingsTM uses a range of information to provide personalised results:

  • Your loan amount
  • Your borrowing status (whether you are an owner-occupier or an investor)
  • Your loan-to-value ratio (LVR)
  • Your personal preferences (such as whether you want an offset account or to be able to make extra repayments)
  • Product information (such as a loan’s interest rate, fees and LVR requirements)
  • Market changes (such as when new loans come on to the market)

Does Real Time Ratings' work for people who already have a home loan?

Yes. If you already have a mortgage you can use Real Time RatingsTM to compare your loan against the rest of the market. And if your rate changes, you can come back and check whether your loan is still competitive. If it isn’t, you’ll get the ammunition you need to negotiate a rate cut with your lender, or the resources to help you switch to a better lender.

Mortgage Calculator, Loan Term

How long you wish to take to pay off your loan. 

Mortgage Calculator, Repayments

The money you pay back to your lender at regular intervals. 

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

What is appreciation or depreciation of property?

The increase or decrease in the value of a property due to factors including inflation, demand and political stability.

How does a redraw facility work?

A redraw facility attached to your loan allows you to borrow back any additional repayments that you have already paid on your loan. This can be a beneficial feature because, by paying down the principal with additional repayments, you will be charged less interest. However you will still be able to access the extra money when needed.