It’s a common misconception: “There’s no point refinancing when rates are high.” In reality, refinancing can be just as valuable—if not more so—in a higher-rate environment.

Why refinancing still matters

Even when rates are elevated:

  • Not all lenders price loans the same
  • New customers often receive better deals
  • Your current loan may no longer be competitive

When refinancing could help

You might benefit from refinancing if you want to:

  • Reduce your interest rate or repayments
  • Access equity for renovations or investment
  • Consolidate debts
  • Switch loan features (e.g. add offset, flexible repayments)

Watch out for costs

Refinancing isn’t always free. It’s important to weigh:

  • Exit fees (if applicable)
  • Application and settlement costs
  • Any break costs on fixed loans

A broker can help calculate whether the savings outweigh the costs.

It’s not just about rates

The lowest rate isn’t always the best loan. Features, flexibility, and structure matter—especially in uncertain conditions.

Refinancing remains a powerful tool. The key is making sure it’s the right move for your specific situation—not just reacting to headlines.