Refinancing in Perth: The 7-Point Checklist Before You Switch
Thinking of refinancing your Perth home loan? Run through this 7-point checklist before you switch to help decide if it's the right move for you.
Refinancing may help some Perth homeowners reduce their interest costs — but only if you switch for the right reasons to the right lender. Whether it’s right for you depends on your situation. Here’s the 7-point checklist we run for every refinance client.
1. Is your current rate 0.3%+ above market?
Check your variable rate against rates currently available from lenders for a profile like yours. As an example only, a 0.3% difference on a $500,000 loan amounts to approximately $1,500 per year in interest — actual impact depends on fees, loan features and your personal circumstances.
2. Are you coming off a fixed rate?
If your fixed term ends in the next 6 months, start shopping now. Revert rates are notoriously uncompetitive — lenders bank on inertia.
3. Will break costs kill the deal?
Breaking a current fixed loan can cost thousands. Always get your bank to provide a written break cost quote before considering a refinance away from a fixed rate.
4. Does the cashback offer come with a competitive rate?
Some cashback offers come paired with less competitive rates. As an illustrative example only, a 0.2% higher rate over five years on a $500,000 loan can mean more in extra interest than the cashback covers. Always compare the total cost, not just the upfront bonus.
5. Are you using features you pay for?
Offset accounts, redraw, split loans — these add to ongoing fees. If you’re not using them, a basic no-frills loan is cheaper.
6. Will the new valuation support you?
Lenders will re-value your property. If the Perth market has dropped in your suburb, you might end up in a higher LVR bracket and actually get a worse rate. We check expected valuation before we apply.
7. Has your situation changed?
New job, new baby, self-employed now, home office added? These can affect borrowing power. A fresh look at your serviceability often opens doors that were closed before.
The Matrix Finance refinance health check
We do the full 7-point check for free, with no obligation to proceed. You’ll get:
- A written comparison of 3 best-fit lenders
- Net savings after fees
- Break-even point if there are costs involved
Book your free refinance health check →
This article is general information only and does not take into account your personal objectives, financial situation or needs. Consider whether it is appropriate to your circumstances and seek professional advice before acting on it.