Should you refinance your home loan?

Refinancing can help open up a whole range of benefits, especially if you’ve had your home loan for a while. Here are a few things to consider.

If you’ve had your home loan for a few years, you may be able to look for opportunities to save money, pay off the home loan faster, or unlock more flexible features with a new loan. All of these options could be possible through refinancing, depending on your current loan and circumstances.

What is refinancing?

Refinancing means shifting from one loan to another. When you move to a new loan, you take on the terms of your new loan. In other words, certain things may change, such as the length of your loan term and your interest rate.

Benefits of refinancing

At Police Bank, we find our members choose to refinance to us for a number of reasons, including:

To secure a more certain repayment amount with a fixed-rate loan– Our current two-year fixed rate home loan is a popular choice for owner-occupiers looking to lock in rate certainty after recent Reserve Bank rate rises, especially because it has no annual fee. Additionally, for a short period, if your refinance your home loan to us, on an eligible fixed rate home loan* then $2,000 cashback+ is also available.
To save money with a cheaper loan – If the new loan has a lower interest rate or lower fees, the borrower may pay less.
To pay off the loan more quickly – Some borrowers switch to a shorter loan term, which may allow them to be debt-free sooner.
To consolidate debt – Some members with multiple loans choose to bring them all under one loan to simplify their finances.
To unlock equity – Refinancing can allow borrowers to access equity for other investment purchases, renovations or lifestyle goals.
To access more flexible features – Sometimes, borrowers choose a no-frills loan to begin with, and then wish to take advantage of more flexible features, such as offset accounts and redraw facilities.

What to think about

Before you consider refinancing, it’s important to weigh up your goals and the costs associated with switching from one loan to another. These can vary depending on your current loan and the loan you choose.

At Police Bank, we’re here to help. You can call us on 131 728 or fill in our refinance form to have a member of the team contact you.

Spotlight articles are prepared without taking into account your objectives, financial situation or needs and are published for information purposes only. You should consider the appropriateness of any content for your circumstances.

Visit Important Documents & Information to access Terms and Conditions and the Financial Services Guide, which are currently available electronically for products of Police Bank Limited. Target Market Determinations are available here. Loan applications are subject to lending criteria and credit approval. Interest rates are subject to change. Fees and charges may apply.

+ Cashback Terms & Conditions, two and three year fixed rates

+ To be eligible for the Police Bank cashback offer, applicants must be refinancing an existing Owner Occupied home loan of $300,000 or more from another financial institution (excluding Border Bank and Bank of Heritage Isle) with a salary credited directly to a Police Bank account. Only applicable for 2- or 3-year fixed rate home loans. The offer is only available to applicants who apply and are approved from 18/03/2024 – 30/6/2024. Eligible loans must settle within 90 days of application.

The cashback is only available once to each individual or joint applicant(s). The cashback amount will be credited to either the primary transaction account for single borrowers or a joint account with the primary borrower within 60 days of settlement. The salary credit must be set up within 60 days from loan settlement. If multiple loans apply, all loans must be funded before the total cashback is assessed and paid. The total sum of all loans funded must exceed $ 300,000. This offer is not available in conjunction with any other offer, bonus or discount. We reserve the right to withdraw this offer and/or alter the offer period at any time.

This offer is available to all fixed rate OO, P&I loans excluding loans guaranteed through the Housing Australia schemes.

*Terms, conditions, fees, charges, eligibility and lending criteria apply.

There is a Rate Lock in fee of $600
Lenders Mortgage insurance (LMI) is applicable on all loans with an LVR of above 80%
Early repayment costs may apply if you repay your loan or switch to another one before the end of your fixed term or make early or additional repayments. Once the fixed rate period ends, the loan reverts to a variable rate loan and repayment amounts will change.