Hi Daniel,

This is such a great question. And the answer might surprise you!

So, let me paint a picture – let’s say you're currently chipping away at a home loan of $750,000 (for a property you’re living in).

You're in it for the long haul, with 25 years left at an interest rate of 6.29%. This sets your monthly repayments at around $4,967.

You decide to have a chat with a mortgage broker to see if you’re still getting a good deal.

They dig around and find a deal that seems to fit your needs perfectly. It's a similar loan, stretching over the same 25-year period, but with a slightly lower interest rate of 5.99%.

This new setup could drop your monthly repayments to $4,828. $139 less – not bad!

Here's where it gets interesting.

You mention to your broker that you're comfortable paying $4,967 monthly. So, you ponder, "is the effort of refinancing really worth it?"

Let's crunch some numbers...

By refinancing and accepting the new repayment of $4,828, you're set to save approximately $42,000 over the remaining 25 years.

But, imagine you decide to refinance and keep paying your original amount of $4,967 (instead of the new $4,828).

Now you're not just paying your loan; you're outsmarting it.

With an extra $139 tucked into each payment, you’ll be waving goodbye to your mortgage in 23.5 years (not 25).

That's 1.5 years sliced off your original loan term plus an additional $50,000 in savings, bringing your total savings to around $92,000. Nice!

So, is refinancing worth it? Well, if saving a chunk of change and time sounds good to you, it just might be the savvy move you're looking for.

Here to help if you want to look at your options.

All the best,

Daisy

Daisy Stevens
Senior Home Loan Expert