So, is now a good time to refinance?
The decision as to whether to refinance depends largely on your individual situation and goals. Here are a few key considerations to think about when deciding whether or not to refinance.
In positive news, the consumer price index (CPI) rose by 2.1 per cent over the 12 months to the June quarter, while the trimmed mean annual inflation was 2.7 per cent to the June quarter. This is the figure the RBA pays close attention to when deciding what to do with the cash rate.
With trimmed mean inflation now at its lowest since December 2021 and well within the RBA’s target band of 2-3 per cent. There is a strong case for further cash rate cuts if inflation and economic growth continue on their current path.
The RBA’s latest Statement on Monetary Policy offered fresh insights into the outlook. Despite markets expecting lower rates since May, the RBA’s inflation forecast remains steady, with the trimmed mean sitting at 2.6 per cent for the next two years.
Financial markets are currently pricing in a cash rate low of 2.9 per cent by December 2026 before edging back up to 3.1 per cent in 2027. If the RBA’s projections are correct, they suggest the economy can operate with a cash rate around 3 per cent and inflation will remain within their target band.
Given the three rate cuts so far this year, there’s a lot of competition amongst lenders to get mortgage holders through the doors.
By refinancing, you may access an attractive cash back offer that helps you get ahead with your goals or secure a more competitive home loan rate. Refinancing and setting you up with a home loan with interest-saving features like a redraw facility or offset account could also help you get ahead financially.
It’s hard to know exactly how soon the RBA will cut the cash rate again. While refinancing will depend largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up, particularly if you fall under any of the following categories.
If your current home loan was locked in at the cycle’s peak, you may be paying more than is necessary on your mortgage. If you’ve had the same home loan for several years, chances are you could be getting a more suitable offer with another lender, so it’s worth exploring your options and shopping around.
Have your financial circumstances changed since you took out your original home loan? If so, all the more reason to consider refinancing to a home loan that marries with your current financial situation and long-term objectives.
If you’re juggling multiple debts at once, such as a personal loan and credit card debt, it may be worthwhile considering debt consolidation.
With debt consolidation, you essentially roll all your debts into your home loan. It means you only have to make one repayment, making it easier to manage your debt.
It’s important to remember that you may end up paying more interest over the life of the loan if you go down this road, so speak to us and we’ll crunch the numbers for you.
Want to make a big-ticket purchase, like buying an investment property or doing a home renovation? Refinancing to access your equity could help you achieve these kinds of goals.
If you’re considering refinancing, reach out to us for a home loan health check.
We can help you work through all the options out there and find you a home loan to suit your specific circumstances and goals. We’ll also explain any costs involved and help you weigh up whether it’s worth refinancing.
Get in touch today.
Rates shift, life changes, and alternative loan products emerge. What suited you years ago might no longer. Reviewing your loan every two to three years is crucial for maintaining good financial health. Below is some general guidance, along with helpful links, to steer you through what to check this end of financial year.
Many borrowers lock in a loan and forget about it – but letting your home loan sit untouched for years could quietly erode your financial position. As part of your EOFY reset, ask yourself:
If you’re unsure how to answer these questions, or if the answers aren’t giving you confidence, it’s a clear sign to speak to a broker. I can review your current loan, compare rates and features across lenders, and help ensure you’re in a product that aligns with your financial needs and goals.
If you also hold investment property, you should go a step further and prepare your portfolio for tax time. Here’s a quick EOFY checklist to help keep you on track.
The Australian Taxation Office’s 2025 Tax Time toolkit for investors has a wealth of information about what tax deductions you can and can’t claim for your property investment.
Examples include:
Your tax accountant will need details about your rental income and expenses to process your tax, so make sure you have these ready by the end of the financial year.
Hopefully you’ve moved away from a shoebox of faded receipts to an online platform that allows you to store and manage your records effectively. There are all sorts of record-keeping tools out there that make it easier for property investors to keep records safe in one place.
If you’re expecting to be in a higher tax bracket this year compared to next, it might be worth pre-paying your investment property expenses like insurance or loan interest before June 30. That way, the tax deductions will fall in the current financial year.
You can find the 2024-25 tax brackets on the ATO website.
If your tenants haven’t paid their rent, you may be able to write it off as a bad debt. This can reduce your taxable income, so it’s worth speaking to your accountant about it.
Sold an investment property this financial year? You’ll need to plan for the Capital Gains Tax (CGT) liability.
Keep in mind that if you’ve held the asset for longer than 12 months, you may be entitled to the 50% CGT discount.
You can claim a deduction in value of depreciating assets, for example a dishwasher in your rental property.
If you haven’t already done so, get a quantity surveyor to prepare a depreciation schedule report for your investment property. This will outline the available deductions for the depreciation of the building and its fixtures and fittings. It’s another great way to save on tax.
How did your property perform over the past 12 months? What was the rental income compared to previous years? What were the occupancy rates and maintenance costs comparatively?
If you have multiple investment properties, this may help you weed out the high-performing investments and draw your attention to those that need restructuring or further review.
Next, consider what your goals are moving forward? Maybe you want to get a second investment property, or renovate your current one to boost its rental return? If so, talk to us about your finance options.
With two cash rate cuts so far this year and a lot of interest rate movement, it’s a good time to get an investment loan health check.
The information discussed in this article is general in nature and you should always seek professional advice in relation to your individual tax circumstances. I can assist with your finance options. If you’d like help reviewing your current loan or lining up finance for a future purchase, I’m just a call away. Reach out to discuss your options and make the most of the new financial year.
If you’re looking to buy a property, it’s important to remember that your gambling habits could be taken into account when you apply for a home loan.
Your lender will look at any track record of gambling when assessing your financial situation and ability to repay the mortgage.
Not only could gambling jeopardise your chances of being approved for a loan, but it could also impact your ability to refinance down the track.
When you apply for a home loan, your lender will do an affordability assessment. As part of this, they’ll assess your income (from all sources) against your outgoings (your regular expenses). They’ll also likely check your credit score.
If a lender sees evidence of regular gambling transactions as part of your expenses, it may be a red flag. They’ll look at how much money you’re gambling, how frequently you’re betting and what type of gambling you’re participating in.
If it’s a small amount you’re gambling relatively infrequently for leisure, it probably won’t raise any alarm bells with the lender. The occasional Powerball ticket, for example, will be considered harmless. However, if it’s an ongoing habit that’s getting out of control, it could limit your ability to secure finance.
There are steps you can take to try to maximise your chances of getting approved for a home loan if you do have a history of gambling.
There are many resources available to help you tackle a gambling addiction. GambleAware offers tools and support for those who are looking to stop gambling. The site includes a gambling assessment to see how the habit may be impacting your life, as well as research and links to gambling support groups.
You can also get immediate support from Gambling Help Online on 1800 858 858. It’s free and confidential. Other options can be found on the Health Direct website.
If you’d like to know more about how your gambling habit may affect your home loan application, we’re here to answer your questions.
Talk to us confidentially about your financial situation and we’ll help you work towards getting the finance you need.
103 Banna Avenue,
Griffith NSW 2680
P | 02 6964 4690
info@mylendingspecialist.com.au
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