Refinance Bacchus Marsh — top reasons to act
We often get asked when it actually makes sense to refinance in Bacchus marsh. Short answer: when it clearly helps meet bigger goals without piling on risk. In our experience, there are a handful of situations where Mortgage Refinancing earns a proper look — and if you’re planning ahead for another property, stick around because equity is the easiest lever people use to get ahead.
A cheaper rate still moves the needle
The most common trigger to refinance a home loan is price. Many households don’t realise how much they can save because finance feels complex, but going through the process is what maximises savings. In our notes, most people can save “a minimum $2,000 per year” by switching to a cheaper lender, and refinance rebates of up to $4,000 per loan have been offered to encourage movement — that combo is why a fresh look often stacks up.
Debt consolidation (with eyes open)
We regularly see car loans, personal loans and credit cards sitting alongside the mortgage. Rolling them into the home loan can simplify things and reduce total payments. The caution is obvious: credit cards can run near 20% interest and the spending trap is real, so consolidation is a reset — not a licence to repeat the pattern.
If consolidating, keep that split separate and, ideally, on a shorter term. Otherwise, short-term debts that would normally be cleared in five to seven years end up stretched over a 30-year mortgage. Yes, repayments drop now, but total interest rises if the term is extended; the balance has to feel right for your situation.
Renovations: using equity (and “as-if-complete”)
Homes age. Kitchens and bathrooms date. You can refinance to access cash for renovations if there’s equity and income to support the payments. Lenders may look at an “as-if-complete” valuation — essentially, what the place will be worth after the works — which is how some construction amounts get supported inside the loan. Done properly, this can proceed without increasing the scheduled repayment.
Relationship splits and title changes
A steady share of refinances are driven by separations or divorce. The job is to refinance the loan, transfer title to one party, and navigate borrowing-capacity rules that vary between lenders (child support and family payments are treated differently). Court timelines can stretch, so starting early tends to save stress.
When fixed terms expire
Another common moment: a fixed rate rolling to a standard variable rate. Lenders typically won’t discount that revert rate much, so repayments can jump. Our first step is always to negotiate with the existing lender; if the offer isn’t sharp enough, that’s the right time to revisit structure and switching options. Either way, check the revert rate — don’t sleepwalk onto an uncompetitive deal.
Lowering repayments by resetting the term
Sometimes it isn’t about the rate at all — it’s about cash flow. Extending the remaining term can materially reduce repayments. The worked example we use: on a $500,000 balance with 20 years to go, weekly repayments around $761 could fall to about $619 by resetting the term (even without changing the rate). The trade-off is higher total interest across the life of the loan. Useful breathing room, but go in with eyes open.
Switching features to fit how you use money
Features matter. If you’re on a basic loan with no offset, you might refinance to a facility with an offset. Or you may want to split between fixed and variable. Keep in mind: fixed loans often cap extra repayments (commonly $10,000–$20,000 per year), and not every lender offers unlimited offset accounts — some allow only one offset per split. Small details; big day-to-day differences.
Buying another property using equity
For many Bacchus Marsh Homeowners, the goal is an investment property or a bigger family home. Equity is the gap between value and debt. Lenders will often let you draw on a portion of that equity to cover deposit and costs, subject to servicing; rental income on the new investment can count toward borrowing capacity. That’s why a refinance home loan frequently sits inside the plan to step up.
On structure, we’re firm: avoid cross-securitisation and keep facilities standalone. That way, if you sell the investment later, you simply pay out the debt attached to that property — no surprise revaluations of your home. It keeps outcomes predictable.
Releasing equity ahead of time
A related move is releasing equity and parking it in offset or redraw so you’re ready when opportunities (or surprises) arise. If values soften later, you’ve already secured funds to act. It’s not about timing the market; it’s about being able to move when the market moves.
Our usual game plan
Before switching, we ask the current lender to sharpen the pencil. If they can meet the target, there’s no need to move. If not, we compare the cost of staying versus the benefit of switching so it’s not “refinancing for the sake of refinancing”. That lens keeps decisions practical and grounded in numbers.
By David Warburton
