Refinancing readiness quiz

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Answer these six questions to find out if now's the right time to switch your home loan.


The secret’s out: one of the simplest ways to save on your monthly budget is to shave your home loan interest rate by refinancing, and moving your loan to another lender.

But before you start hunting down the best home loan deals, make sure now’s really the right time to refinance – and that you’re doing it for the right reasons. Take our quick quiz to check your best next step.

1. Do you have more than 20% equity in your home and is your income likely to stay the same (or rise)?

The more equity you have, the more your loan to value ratio (LVR) may have improved. LVR is the amount of your loan, as a percentage against the value of your property, and as it goes down your chance of a better rate goes up.

Not sure how to work out your equity?

Subtract the amount you owe on your home loan from your current estimated property value, and then divide it by your property value. Multiply the answer by 100 to get the percentage.

For example, if you owe $500,000 on your home loan but your property is now worth around $750,000, your equity is (750-500)/750 X100 =33.3%.


2. Are you currently on a variable rate loan, or at the end of your fixed loan period?

Breaking a fixed rate loan can incur fees – it may be better to wait.


3. Are you able to keep making your current monthly home loan payment?

If you refinance to get a lower monthly repayment, but keep paying more, you could pay your home loan off much sooner.


4. Are you keen to achieve your savings goals?
By putting the money you save from a lower interest rate into an offset account, you’ll get closer to that family holiday, major renovation or school fee fund or paying off your loan sooner.

Macquarie offers multiple home loan offset accounts that all work together to reduce your home loan interest. You create up to 10 different offset accounts.


5. Are you happy to move all your accounts to one bank?

You’ll typically save more with a combined home loan/account package. With Macquarie, you have access to a great app, great budgeting tools, no fees on transaction accounts and great credit card rewards. You can even use your home loan to earn Qantas Points.


6. Are you paying at least 0.5% more than the best interest rate you’ve seen available?

Every dollar helps, but saving at least 0.5% will probably make it worth your time and any fees involved in the process.

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Talk to us today

How much could you save with a better rate? Talk to one of our home loan specialists today about how we can help.

How can we help?

Are you getting the best value from your home loan? You might benefit from talking to a home loan specialist.

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But even if now isn’t the right time to refinance for you, think about your other bank accounts.

  • Is your credit card working hard enough to reward you?
  • Does your transaction account help you budget?
  • Are you paying too much in monthly account, ATM, international transaction or branch fees?

Choosing the right bank can make a big difference to the lifestyle choices you make every day – and to building your wealth in the future. Find out more about the best options for you.

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Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire a credit or lending product, a person should obtain and review the terms and conditions relating to that product and also seek independent financial, legal and taxation advice. All applications are subject to Macquarie’s standard credit approval criteria.