5 things to consider before refinancing your home loan this year

When you refinance your home loan with BCU Bank, you can get access to a great interest rate and much more!

With increasing cost-of-living pressures, many Australians are looking at ways to make their home loans more affordable.

So it's no surprise that many are considering refinancing their home loan.

But before you refinance your own home loan, there are a few things to consider.

Get started with BCU Bank

1. Whether to opt for fixed or variable interest rates

One of the key things to consider when you refinance your home loan is whether you want your loan to have a fixed or variable rate.

Fixed interest rates allow you to lock in an interest rate for a pre-agreed period of time.

This means that you've got stability around your repayments, which can make it easier to budget and plan.

It protects you against interest rate rises during the fixed term.

Right now, BCU Bank is offering a 2-year owner-occupied fixed rate home loan at 4.89% p.a.* (5.40% p.a. comparison rate**), which is one of the lowest rates on the market at time of writing.

Variable interest rates can move any time and not necessarily with RBA cash rate changes.

So if interest rates fall, your home loan interest and repayments will also drop down.

Of course, the opposite is true too. If interest rates rise, so will your repayments!

Everyone's needs are different, so it's worth taking a close look at your finances to see what suits you best.

Learn more about BCU Bank

2. Your occupation

Did you know that your job can actually influence the type of home loan you're eligible for?

Depending on the lender, certain occupations may be eligible to use lower deposits without LMI. Some lenders provide exclusive banking benefits and tailored home loan benefits for essential services workers, which recognise income and flexible rosters.

This can extend to loan features, too. For example, essential services workers who take out a home loan or refinance with BCU Bank are eligible for a $1,500 cashback.***

You can find out more information on the BCU Bank website.

3. The loan features you want

In addition to getting lower interest rates, many people refinance to take advantage of better home loan features.

For example, additional repayments can allow you to pay off your home loan sooner and reduce the amount of interest you pay over time. This feature is available on both fixed and variable rate BCU Bank home loans, giving you flexibility no matter which loan type you choose.

If you take out a variable rate loan, you may also have access to a redraw facility, which lets you withdraw the additional repayments you've made. This can be a more effective way to free up cash flow than by taking out another loan.

Offset accounts are another valuable feature available on variable rate loans. By linking your savings to your home loan, you can reduce the interest charged on your outstanding balance and potentially save thousands over the life of the loan.

You can find a range of home loans with varying features on the BCU website.

4. Refinancing costs

Refinancing your home loan can incur certain costs.

For example, your current lender may charge a break fee if your loan is fixed.

Your new lender might charge an application or establishment fee.

It's important to weigh up whether these costs are worth the overall benefit of refinancing.

Looking for a loan that doesn't have ongoing costs, like the BCU Bank OMG Home Loan, can be an effective way to minimise other costs during the loan's lifespan.

Using the BCU Bank Home Loan Repayment Calculator can also give you a feel for how cost-effective it may be to refinance.

5. Your future plans

Refinancing your home loan can be a great way to help organise your wider finances.

But it is a major financial decision. It can have an impact on your credit score, which in turn can affect your future borrowing plans.

So it's worth speaking to a financial professional before proceeding with the refinancing process.

BCU Bank offers a range of financial wellbeing resources to help you assess your situation.

Additionally, you can call into your local branch to speak to a team member.

Learn more about refinancing with BCU Bank

More information about BCU Bank

Credit products issued by Police & Nurses Limited (BCU Bank) ABN 69 087 651 76 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply.

*Rate advertised is for P&I loans >$20k. LVR <95%. Rates and product information current as at 11 September 2025 and is subject to change. The Target Market Determination (TMD) for this product is available on our website or upon request. Other loan to value ratio tiers and rate options are available on our website.

**Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable interest-only loans, comparison rates are based on an initial 3-year Interest Only period. For fixed Interest Only loans, comparison rates are based on an initial Interest Only period equal in length to the fixed period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

***Minimum new money loans of $250,000 and LVR of 80% or less. Other eligibility and lending criteria and terms and conditions apply. Offer not available with any other offer. BCU Bank reserves the right to withdraw the offer at its discretion.