I get asked this question almost daily: “Should I refinance home loan now, or wait?”

The honest answer? It depends entirely on YOUR situation. What I can tell you is that 2026 has created some interesting conditions, and if you’ve been sitting on the fence, certain signs might be flashing bright green telling you it’s time to make a move.

Let me walk you through the seven key indicators I look for when helping clients decide if NOW is their moment to refinance.

SIGN #1: Your Current Rate Is Significantly Higher Than What’s Available

This is the big one, and it’s exactly what we’re seeing right now.

If your interest rate is sitting 0.5% or more above what I can secure for you today, that’s a massive red flag you’re leaving money on the table. Even a 0.5% reduction on a $500,000 loan can save you around $2,500 per year. Over the life of your loan? We’re talking tens of thousands of dollars.

I had a client last month stuck on a 6.2% variable rate from 2023. We refinanced them to 5.65%, and their monthly repayments dropped by $215. That’s over $2,500 back in their pocket every year, just for making one smart move.

The key here is knowing what rates are ACTUALLY available to you. Not the headline rates you see advertised (which often come with conditions), but the real rates based on your situation, loan size, and property.

SIGN #2: Your Credit Score Has Improved Since You Last Applied

Your credit score is like your financial report card, and lenders care about it. A LOT.

If you’ve spent the last few years paying down debts, making on-time repayments, and generally getting your financial house in order, your credit score has likely improved. That improved score opens doors to better loan products and lower interest rates.

Generally, borrowers with scores above 700 get access to the most competitive rates. But here’s the thing, even if you were approved at 650 two years ago and you’re now sitting at 680, that improvement might qualify you for a better deal.

I always run a credit check early in the process (with your permission, of course) to see exactly where you stand. If your score has jumped significantly, refinancing becomes a no-brainer.

SIGN #3: You Want to Pay Off Your Loan Faster

Life changes. Priorities shift.

Maybe you’ve received a pay rise, an inheritance, or you’ve simply reached a point where you want to be mortgage-free sooner. Refinancing from a 30-year loan to a shorter term, say 15 or 20 years, can save you an ENORMOUS amount in interest charges.

Yes, your monthly repayments will increase. But you’ll own your home outright years earlier, and you’ll pay potentially hundreds of thousands less in interest over the life of the loan.

I worked with a couple recently who refinanced from 25 years remaining down to 15 years. Their repayments went up by about $400 per month, but they’ll save over $180,000 in interest and be debt-free while they’re still in their early 50s. That’s powerful.

SIGN #4: You Want to Remove Lenders Mortgage Insurance (LMI)

Here’s something many homeowners don’t realise: if your property value has increased and you now have 20% equity or more, you can refinance to eliminate LMI.

LMI is that extra cost you paid upfront (or capitalised into your loan) when you borrowed more than 80% of your property value. It protects the lender, not you, and it can add thousands to your loan balance.

If your home was worth $600,000 when you bought it with a 10% deposit, but it’s now valued at $750,000, your equity position has changed dramatically. Refinancing at this new valuation might mean you can ditch LMI altogether and reduce your overall loan costs.

This is particularly relevant right now given how much property values have fluctuated over the last few years. It’s worth getting a current valuation to see where you stand.

SIGN #5: Your Property Value Has Increased Significantly

Building on that last point, if your home has increased in value, you’ve got options.

Increased equity doesn’t just help you remove LMI. It also opens up opportunities for cash-out refinancing if you need access to funds for renovations, investment opportunities, debt consolidation, or other major expenses.

Let’s say your home is now worth $200,000 more than when you bought it. That’s equity you can potentially access at mortgage interest rates (which are significantly lower than credit cards or personal loans).

I’ve helped clients use this equity to:

• Fund major home renovations that further increased their property value
• Consolidate high-interest credit card and personal loan debts
• Purchase an investment property
• Cover education costs for their kids

The key is using that equity WISELY and making sure the numbers actually work in your favour long-term.

SIGN #6: Your Financial Situation or Goals Have Changed

This is the catch-all category, but it’s no less important.

Maybe you’ve started a family and need better cash flow. Maybe you’re planning to invest in property and need to restructure your loans. Maybe you’ve received an inheritance and want to make a large lump sum payment. Or perhaps you’re approaching retirement and want to switch from interest-only to principal-and-interest repayments.

Whatever the change, your home loan should adapt to fit YOUR life, not the other way around.

I recently worked with a client who switched careers and now runs their own business. Their income structure changed completely, but we were able to refinance them to a loan that better suited their new circumstances, with more flexible repayment options and an offset account to help with tax efficiency.

Your loan is a tool. Make sure it’s the right tool for the job you need it to do TODAY, not three years ago.

SIGN #7: Your Variable Rate Loan Is About to Increase (Or Keeps Climbing)

If you’re on a variable rate loan and you’re concerned about future rate movements, refinancing to a fixed rate, or even just switching to a better variable rate product, might give you more certainty and peace of mind.

After the rate rises we saw through 2022-2024, many borrowers are understandably nervous about what’s coming next. While variable rates offer flexibility and often sit lower than fixed rates, they also come with uncertainty.

Refinancing to a fixed rate locks in your repayments for a set period (typically 1-5 years), which can help with budgeting and financial planning. Alternatively, you might split your loan, fixing part of it for certainty while keeping part variable for flexibility.

The best approach depends on your risk tolerance, financial buffer, and how long you plan to stay in the property.

But Wait: Should You WAIT Instead?

Here’s the reality: refinancing isn’t free.

You’ll typically pay between $1,500 to $4,000 in costs including application fees, valuation fees, and sometimes discharge fees from your current lender. You need to make sure the savings justify these costs.

The break-even point is crucial. If refinancing saves you $200 per month but costs $3,600 upfront, you’ll break even after 18 months. If you’re planning to sell or move within that timeframe, refinancing might not make sense.

That said, many lenders now offer cashback incentives (sometimes $2,000-$4,000) that can offset these costs, making the break-even happen much faster: or even immediately.

I always run the numbers with my clients to show them exactly when they’ll start seeing real savings. No guessing, no maybes: just clear financial analysis.

The Bottom Line

If you’re experiencing ANY of these seven signs, it’s worth having a conversation about refinancing your home loan. You might discover you’re sitting on thousands of dollars in potential savings.

The worst-case scenario? You spend 30 minutes chatting with me and learn that your current loan is actually competitive. The best case? You could save tens of thousands over the life of your loan.

Given where rates and property values sit in 2026, I’m seeing more refinancing opportunities now than I have in the last two years. Don’t leave money on the table just because you haven’t checked your options recently.

Want to see if refinancing makes sense for YOUR situation? Reach out and I’ll run the numbers for you: no obligation, just honest advice based on your specific circumstances.

You can get in touch here or give me a call. Let’s work out if now is your time to refinance home loan and start saving.