Should I refinance now or wait for rates to drop?

Trying to time the bottom is risky. If your current rate is well above market, switching now usually saves more than waiting. A broker can model both scenarios for you.

How much rate difference makes refinancing worthwhile?

As a rough guide, a saving of 0.5% or more on a typical Melbourne loan often outweighs switching costs — but it depends on your balance and fees. Run the numbers first.

Does refinancing reset my loan term?

It can, but it doesn't have to. You can keep your existing term and pocket the saving, or keep repayments the same and pay the loan off faster.

How often can I refinance?

There's no legal limit, but refinancing too frequently means repeated fees and credit enquiries. Most people review every two to three years, or when circumstances change.

Should I Refinance Now? Melbourne Guide

"Should I refinance now?" is the question on many Melbourne homeowners' minds. The answer isn't about timing the market perfectly — it's about whether your current loan is costing you more than it should. Here's how to decide.

Sign one: your rate is above the market

Lenders often reserve their sharpest rates for new customers, leaving long-term borrowers on a quiet 'loyalty tax'. If you haven't reviewed your loan in two years, there's a good chance you're overpaying.

If you're asking should I refinance now in Melbourne, the first step is comparing your rate to what's available today — a five-minute job for a broker.

Sign two: you're rolling off a fixed rate

Many borrowers who fixed during the low-rate era are reverting to much higher variable rates. Reverting silently to the lender's standard rate is rarely the best deal.

The weeks before your fixed rate expires are the ideal time to shop around, with no break costs to worry about.

Sign three: your circumstances have changed

A pay rise, a growing family, renovation plans, or building equity as Melbourne values shift can all change what loan suits you. Refinancing can unlock equity or better features.

Consolidating high-interest debts like cards or personal loans into your mortgage can also dramatically cut your monthly outgoings.

When it might pay to wait

If you're locked into a fixed rate with high break costs, or your property has fallen in value leaving you with little equity, refinancing may cost more than it saves right now.

If you're about to change jobs or income, lenders may want to see stability first. A broker will tell you honestly if waiting is smarter.

How to make the decision

Run your current loan through our refinance calculator to see the potential saving, then weigh it against the switching costs.

Better still, get a free broker review — we only recommend switching when the numbers clearly work in your favour.

This page is general information only and not financial advice. Lending criteria, rates and government schemes change — speak to a XLOANS broker for advice tailored to your situation. XLOANS is a Melbourne-based mortgage broking service.

Is now a good time to refinance in Melbourne?

Sign one: your rate is above the market

Sign two: you're rolling off a fixed rate

Sign three: your circumstances have changed

When it might pay to wait

How to make the decision

Keep reading

Frequently asked questions

Wondering if now's your moment to refinance?