Why Refinancing Now Could Save You Thousands: Don’t Wait Too Long!
Refinancing: Why Timing Matters
Thinking about refinancing? As interest rates rise, so do the hurdles you’ll need to clear. Refinancing sooner rather than later could help you lock in a better deal and avoid missing out.
Are You Paying the “Loyalty Tax”?
When was the last time you refinanced your home loan?
If the answer is “never”, or you don’t remember, there’s a good chance you’re overpaying because of the loyalty tax—banks often reserve their lowest interest rates for new customers while existing customers keep paying higher rates.
According to RateCity, customers who stay loyal to their bank could pay an extra $5,101 in interest over the next three years on a $500,000 loan with CBA.
💡 A $750,000 loan would cost $7,652 extra, and for a $1 million loan, the total jumps to $10,202.
This explains why owner-occupier refinancing hit a new record high of $12.7 billion in June, as reported by the Australian Bureau of Statistics.
💡 Find better refinancing options with CBM Mortgages today.
Why Refinancing Now Is Crucial
Home Loan Serviceability: A Higher Hurdle Awaits
When refinancing, lenders assess your home loan serviceability—meaning your ability to repay your mortgage at an interest rate at least 3% above what you’re being offered.
With major banks forecasting the RBA’s official cash rate to rise between 2.60% and 3.35%, refinancing sooner could help you avoid higher hurdles when securing a better mortgage deal.
How to Explore Your Refinancing Options
Option 1: Refinance to a New Lender
A mortgage broker can compare loan options across big banks, small banks, and non-bank lenders, ensuring you secure the lowest rate available.
💡 Compare refinancing lenders with expert guidance.
Option 2: Negotiate With Your Current Lender
Even if you don’t want to switch lenders, you can ask your current bank to review your rate—letting them know you’re prepared to refinance elsewhere if they don’t offer a better deal.
💡 Learn how to negotiate better rates.
Don’t Wait—Secure Your Best Refinancing Deal Today!
✅ Lower your home loan repayments
✅ Avoid paying unnecessary interest
✅ Ensure your mortgage aligns with current market rates
📞 Contact CBM Mortgages today and let us help you navigate your refinancing options with ease!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Written by Craig McDonald 12/06/2025
