Why 2024 is the year to switch home loans

Man debating switching home loans in 2024 by holding piggy bank

For many Australians, repaying a home loan is one of the most expensive yet important things they do. For first-home buyers, a mortgage invests in their future and housing security. For investors, it’s a nest egg and income stream. 

But for money-savvy Aussies hoping to save, refinancing a home loan is not just about tightening the belt: spending smarter is a key part of the equation.

So let’s look ahead with some property forecasts. Why is 2024 the year to switch home loans and make your money count for more?

Interest rates will hold

Piggy banks in a line: interest rates will hold

This decade has been rocky for the Australian property market. From the boom of 2020 to the bust of 2022, and all the interest rate hikes between, buying a home has been a little like leaping into fire.

Still, plenty of borrowers have leapt into the housing market anyway. Property is the Australian dream, after all.

However, 2024 could look a little different. If the experts are right, rate hikes are largely finished. This could smooth out the rises and falls of the housing market while keeping home loan deals looking more consistent. 

Now, you can confidently plan your home-buying journey without worrying about a huge market upset or your interest rate changing during the application process.

Home values will rise

Home values will raise leading to more home equity

Have you been making principal mortgage repayments? Then 2024 could be a great year to check your property value. 

According to the research house CoreLogic, Australian home values increased 8.1% over 2023. Based on their forecasts, home values will continue to rise in 2024. 

Of course, these capital gains haven’t been felt equally across the country. But knowing your property value is a huge advantage, especially if you live in a hot housing market like Sydney, Melbourne, or Brisbane, because it estimates your home equity.

Home equity is the value of your ownership, and it can be a huge asset when refinancing your home loan. Borrowers with more equity get better interest rates than borrowers with low equity, and some of the cheapest home loan offers in Mozo’s database have high equity requirements. 

For example, Unloan’s competitive digital home loan with a 5.99% p.a. (5.90% p.a. comparison rate*) interest rates requires refinancers to have at least 20% home equity (LVR < 80%).

Your home loan won’t switch itself

Your home loan won't switch itself, house with money graphic

Letting your money idly run itself is fine for a while, but not great long-term. Much of life is about maintenance, and that means occasionally having a check-in. Ask yourself, in all seriousness: when was the last time you looked at your finances, especially your home loan?

For example, if you compare your home loan to others on the market:

  • Are the fees too high or too many?
  • How high has your interest rate gone?
  • Do you enjoy working with your lender?
  • Are there ways to pay off your home loan faster, i.e. extra repayments?

Asking yourself these critical refinancing questions can help you sort out not just your money, but how you feel about it. None of these are issues that will magically solve themselves, after all, so a little bit of proactivity now could save you time, headaches, and cash in the long run. 

Still on the fence? That’s alright: research is key, and refinancing takes a bit of preparation. You can learn more about the refinancing process using our home loan guides and compare refinancing deals on offer in the table below.

Compare refinance home loans - last updated 23 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
  • Straight Up

    Obliterate, Investor, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.34% p.a. variable
    6.34% p.a.

    Investors get a low variable rate depending on your deposit with Athena’s Straight Up Investor Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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