Why now could be the perfect time to refinance your mortgage

Polly Fleeting

17 Mar 2020

Refinancing home loan 2020 content

If current Australian and world events have left you wondering about the state of your finances, you’re likely not alone. 

Whether you have been affected by the recent bushfires or are feeling the blow of the latest outbreak of COVID-19 (Coronavirus), you may be left thinking you need to hold onto your cash even tighter than you did before. 

So while making small changes like saving on grocery shops or cutting costs on your energy bill may all help in the long run, refinancing your mortgage could be an effective way to give yourself an instant pay rise. 

Since the Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points to an historic low of 0.50% earlier this month, home loan rates have become more competitive than ever. 

According to the Mozo database, a whopping 52 mortgage lenders passed on the full 0.25% rate cut, leaving the average variable rate sitting at 3.49% (compared to 4.34% this time last year). 

Plus, 82 out of 95 lenders in our database offer fixed or variable home loan rates below 3.00%, with the most competitive rate currently at a low 2.44%. 

How much could I save in monthly repayments by refinancing my mortgage? 

Let’s do the maths. 

Say you currently have a 30 year home loan of $400,000 at last year’s average of 4.34%, you’d currently be paying $1,989 in monthly repayments. 

However, if you were able to refinance that 30 year loan to another loan with a more competitive interest rate, like 2.49% (one of the lowest on our database), your monthly repayments would sit at $1,578 instead. 

That’s a $411 difference, every month! 

RELATED ARTICLE: Home loan variable rates now start with a '2'

So in a nutshell, if you took out a home loan last year or earlier, and your lender hasn’t passed on the recent RBA cuts, chances are you aren’t getting as good of a deal as you could be. 

Want to check some offers out? Take a look at the table below, or give our Switch & Save Calculator a try.

Refinance Mortgages 2020

Rates updated daily. Advertiser disclosure.

  • loans.com.au

    3.69% p.a.

    3.70% p.a.

    $1234

    Product details Close details
    Refinance SMSF Home Loan

    3.69% p.a.

    3.70% p.a.

    Competitive low rate Self-Managed Super Fund Home Loan. Available to refinancing SMSF Home Loan customers only. No application or ongoing fees. Unlimited extra repayments.

    Refinance SMSF Home Loan

    Competitive low rate Self-Managed Super Fund Home Loan. Available to refinancing SMSF Home Loan customers only. No application or ongoing fees. Unlimited extra repayments.

    • $0.00

    • $0.00

    • yes - free

    • no

    • no

    • $220

    • 3.69% p.a.

    • 3.70% p.a.

    • $220

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Investor

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Refinance SMSF Home Loan

    Details Close

  • UBank
    Mozo Expert Choice Badge" style="width:60px;">

    2.19% p.a.

    2.19% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    2.19% p.a.

    2.19% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    UHomeLoan - Discount Offer

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.19% p.a.

    • 2.19% p.a.

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

    Details Close

  • Athena
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a.

    1.99% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    1.99% p.a.

    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Celebrate Variable Home Loan

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 1.99% p.a.

    • 1.99% p.a.

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

    Details Close

  • Macquarie

    2.14% p.a.

    2.14% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    2.14% p.a.

    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Basic Home Loan

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    • $0.00

    • $400.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.14% p.a.

    • 2.14% p.a.

    • $0

    • 60.00%

    • $150,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Basic Home Loan

    Details Close

  • Nano

    1.99% p.a.

    1.99% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Owner Occupier, Principal & Interest

    1.99% p.a.

    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    Variable Home Loan

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • yes - offset sub account

    • $0

    • 1.99% p.a.

    • 1.99% p.a.

    • $0

    • 75.00%

    • $100,000

    • $2,500,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

    Details Close

  • Yard
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a.

    2.02% p.a.

    $1234

    Product details Close details
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <80%

    1.99% p.a.

    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Variable Home Loan Special

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    • $0.00

    • $500.00

    • yes - free

    • yes - free

    • Optional - $10 per month

    • $530

    • 1.99% p.a.

    • 2.02% p.a.

    • $530

    • 80.00%

    • $150,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Special rate applies to home loan applications submitted by 31 January 2022.

    Read our Mozo Review to learn more about the Variable Home Loan Special

    Details Close

^See information about the Mozo Experts Choice Home loans Awards