Your home loan might be costing you thousands more than it should. And the harsh reality? Most Australian property owners don’t realise it until years down the track.

With over 30 years of experience helping clients navigate the mortgage landscape, I’ve seen countless homeowners and investors paying far more than necessary, simply because they set and forgot their home loan. The market has shifted dramatically, lender policies have evolved, and your personal circumstances have likely changed since you first signed on the dotted line.

The question isn’t whether you should refinance. It’s whether you can afford NOT to.

UNDERSTANDING THE REFINANCE LANDSCAPE IN 2026

Before we dive into the warning signs, let’s be clear about what refinancing actually means for you. When you refinance your home loan, you’re essentially replacing your existing mortgage with a new one, potentially with better terms, a lower rate, or features that better suit your current situation.

The Australian lending market in 2026 is more competitive than ever. Lenders are fighting for your business, and that creates opportunity. But here’s what most brokers won’t tell you: the lowest rate isn’t always the best deal. I look at the complete picture—fees, features, flexibility, and whether the loan will actually serve you for the long haul.

SIGN #1: You’re Paying More Than 0.5% Above Current Market Rates

This is the most obvious sign, yet surprisingly common. If your current home loan rate is sitting more than half a percent above what’s available in the market right now, you’re leaving serious money on the table.

Let’s put this in concrete terms. On a $500,000 loan, even a 0.5% difference translates to roughly $2,500 per year, or $208 per month. Over the life of a 30-year loan, that’s $75,000 in unnecessary interest payments.

However, the refinance decision isn’t just about the rate difference. You need to factor in switching costs, which typically range from $1,000 to $3,000 depending on your lender and loan amount. I help you calculate your break-even point—the time it takes for your monthly savings to offset these upfront costs. If you’re planning to stay in your property beyond that break-even point, refinancing makes financial sense.

SIGN #2: You’re Still Paying PMI When You Don’t Have To

Lenders Mortgage Insurance (LMI) was likely a necessary evil when you first bought your property with less than 20% deposit. But if your property value has increased or you’ve paid down enough principal to reach that 80% loan-to-value ratio, you shouldn’t still be carrying those insurance costs.

Many homeowners don’t realise they can refinance specifically to eliminate PMI. Even if your new mortgage rate is marginally higher, the net monthly savings from dropping PMI can be substantial. I’ve helped clients save between $150 to $400 monthly by strategically refinancing once they’ve hit that equity threshold.

SIGN #3: You’re Locked Into a 30-Year Term When You Could Handle 15

Your financial situation has likely improved since you first took out your mortgage. Perhaps you’ve had salary increases, paid off other debts, or your household income has grown. If you can comfortably afford higher monthly payments, refinancing from a 30-year to a 15-year loan term can save you tens of thousands in interest.

Consider this scenario: on a $400,000 loan at 6% interest, you’d pay approximately $463,000 in total interest over 30 years. Refinance that same loan to a 15-year term at 5.5%, and your total interest drops to around $185,000. Yes, your monthly payment increases by roughly $900, but you’ll own your home outright 15 years sooner and save $278,000 in the process.

This strategy particularly resonates with investors looking to accelerate their portfolio growth or homeowners approaching retirement who want to eliminate mortgage debt.

SIGN #4: You’re Riding a Variable Rate Loan Into Uncertain Waters

Variable rate loans can be excellent tools when used strategically. But if your variable rate loan is becoming harder to manage and you’re facing potential rate increases, you’re sitting on a financial time bomb.

Converting to a fixed-rate mortgage locks in your certainty and protection against future rate fluctuations. In the current market environment, this stability can be invaluable for budgeting and long-term financial planning. I help you model different scenarios so you can make an informed decision based on your risk tolerance and financial goals: not fear or speculation.

SIGN #5: You’re Carrying High-Interest Debt When You Have Equity

This is where cash-out refinancing becomes a powerful wealth-building tool. If you’re sitting on substantial home equity while simultaneously paying 18% to 22% interest on credit card debt or 8% to 12% on personal loans, you’re working against yourself.

A cash-out refinance allows you to access your accumulated equity by replacing your mortgage with a larger loan and taking the difference in cash. You can then use these funds to consolidate high-interest debt into your lower-interest mortgage.

The numbers tell the story: consolidating $30,000 in credit card debt at 20% into your mortgage at 6% saves you approximately $4,200 annually in interest charges. Best of all, your debt repayment becomes tax-deductible if the property is an investment.

However: and this is critical: I ensure you understand the implications. You’re converting short-term debt into long-term debt secured against your home. This strategy only works if you commit to not accumulating new high-interest debt. I provide honest, transparent advice about whether this approach suits your specific circumstances.

SIGN #6: Your Credit Profile Has Transformed Since Your Original Loan

Life changes. Perhaps when you first secured your mortgage, you had a limited credit history, a few missed payments, or were self-employed with inconsistent income documentation. If your credit score has improved by 50+ points or your financial situation has stabilised significantly, you’re likely eligible for substantially better rates than you’re currently paying.

Lenders price risk. A borrower with a 750+ credit score receives markedly different offers than someone with a 650 score. I work with a panel of over 30 lenders, which means I can match your improved financial profile with the best of breed funding options available in the current market.

This isn’t about shopping you to the cheapest lender. It’s about finding the right lender whose lending criteria and product features align perfectly with your situation.

SIGN #7: You Haven’t Reviewed Your Loan in 2+ Years

The most dangerous sign of all is complacency. If you can’t remember the last time you had a comprehensive loan review, you’re almost certainly leaving money on the table.

Lender policies change constantly. Product features evolve. Interest rate environments shift. What was a competitive loan in 2024 might be distinctly uncompetitive in 2026. I’ve seen clients discover they’re paying for features they never use while missing features that would genuinely benefit them.

Your loan should work as hard as you do. That requires active management, not set-and-forget mentality.

THE NEWSTART DIFFERENCE: SERVICE FOR THE LIFE OF YOUR LOAN

Here’s what separates my approach (backed by NewStart Financial Solutions) from the typical mortgage broker experience: I provide bespoke service for the life of your loan, not just until settlement.

With over 30 years of experience in financial services, I understand that a home loan isn’t a one-time transaction: it’s a long-term financial partnership. I proactively monitor the market on your behalf, reach out when opportunities arise, and ensure your loan continues to serve your evolving needs.

I’m not interested in churning you through refinances every 18 months to collect broker commissions. I’m focused on your genuine financial progress. Sometimes that means recommending you stay put. Other times it means presenting you with opportunities that could save thousands annually.

CALCULATING YOUR REFINANCE POTENTIAL

The mathematics of refinancing isn’t complicated, but it requires honest assessment of your complete financial picture. You need to consider:

• Current loan balance and remaining term
• Existing interest rate versus available market rates
• Switching costs including application fees, valuation fees, and potential break costs
• Your break-even timeline
• Changes to your monthly cash flow
• Total interest savings over the life of the loan
• Your plans for the property (how long you intend to hold it)

I work through these calculations with you transparently. No hidden agendas. No pressure tactics. Just clear, honest numbers that allow you to make an informed decision.

WHAT HAPPENS NEXT?

If you’ve recognised yourself in two or more of these signs, you owe it to yourself to have a conversation with a specialist who genuinely understands the refinance landscape.

I offer complimentary loan reviews for property owners and investors across Australia. During this review, I’ll analyse your current loan structure, identify potential savings opportunities, and present you with genuinely competitive options from my panel of lenders.

You’ll walk away with complete clarity about whether refinancing makes sense for your specific situation: regardless of whether you proceed with me or not. That’s my commitment to transparency and honest advice.

Contact me today to arrange your complimentary loan review. Your future financial position might thank you for making this simple call.

Because in 2026, staying informed about your borrowing options isn’t optional; it’s essential financial stewardship.