If you’ve got a long-term schedule for loan repayments to buy your home, refinancing that loan can be a great way to save a lot of money for yourself and your family over the long haul. Fed up with the interest rates you’re paying and eager to find lower ones? The solution is easy – refinance and get them.

The tricky part, though, is figuring out the timing. If you’ve got a 30-year mortgage, you’ll be presented with the possibility of refinancing dozens of times. When will you choose exactly the right moment to make your refinance choice official? We can help you figure that out.

Finding the right rate for you

For the most part, the decision on when to refinance should be based on when you can find the lowest loan interest rates. As a general rule, if the average rate on the open market is better than your current one by 1 per cent or more, it’s usually worth it to jump ship from your current loan and find a better one.

This isn’t a hard and fast rule, however. RateCity recommended shopping around if the difference is even close to that figure – if you’re seeing rates that are better than yours by 0.7 or 0.8 per cent, it might be worth talking to a broker to see how low you can go.

Considering other possible triggers

Interest rates are the main factors influencing your refinancing decision, but they shouldn’t be the only one. Bankrate notes that a few other common triggers should lead you to consider a new loan. For example, if you’ve finally recovered after a long bout with a low credit score, you may find your loan options improve dramatically overnight.

In addition, major life events could precipitate new loans. If you’ve just gone through a divorce or a death in the family, your financial circumstances will probably change, and this will have an impact on the mortgage repayments you may have to make.

Get in touch

There are plenty of ways out there to refinance your home loan, but when you do it through a conventional bank, they’ll always be after their own gain. This means they’re probably not looking out for your best interests.

This is exactly why it’s wise to explore what we, as mortgage brokers, can do. If you get in touch with us, we’ll help you evaluate your options and choose a financial option that’s ideal for you.