Refinancing your home loan in 2025? 4 reasons to consider your options

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Not happy with your home loan? It might be time to make a change – it can be better for your finances in the long run.

Sponsored by Newcastle Permanent. Apply for a new home loan or refinance your existing one online with Newcastle Permanent and you could score up to $3,000 cashback. Application must be completed online. $2,000 cashback for loans ≥$250k, or $3,000 for loans ≥$500k. 80% LVR or less. Offer may be varied or withdrawn at any time. T&Cs, fees, charges and credit criteria apply. Click here for cashback offer T&Cs.

2025 is a great time to take control of your home loan. If you're unhappy with your current arrangement, it might be time to refinance!

Refinancing is the process of taking out a new loan to reduce your overall debt and expenses.

This can potentially put you in a better financial position overall, helping pay off the loan more quickly.

Refinance with Newcastle Permanent


👋 Hey there! We've partnered with Newcastle Permanent for this article, so we'll be using some examples of its products throughout. However, you should always do your own research and make sure to always read the product terms and conditions to see if a product suits your needs.

1. Get a generous cashback

Sometimes you can score a cashback incentive when you refinance. Not many lenders offer them though, so it's always worth keeping an eye out!

You can use these funds however you want, too.

You might opt for some new furniture, renovations and repairs – or you could even just feed them back into your mortgage.

At the moment, you can receive a cashback of up to $3,000 when you apply online for a new home loan or refinance an existing one with Newcastle Permanent.

Learn about Cashback with refinancing


2. Reduced interest rates

Getting a lower interest rate is one of the most common reasons people refinance. After all, interest rates remain quite high compared to 4 or 5 years ago.

A lower interest rate means lower repayments – which in turn means you may be able to pay the loan off sooner.

So although the interest rate isn't the only thing you need to consider in a new loan (more on that in a moment) it is very important.

You can read a more detailed rundown of Newcastle Permanent's home loans right here on Finder.

See Newcastle Permanent's interest rates


3. Better loan features

In addition to lowering interest, some people will refinance their home loans to get access to better features.

Some of the most common include:

  • Offset accounts

Offset accounts sit adjacent to your home loan balance, "offsetting" the interest generated. In practical terms? You'll pay off the home loan at the same rate – but you can still make significant savings on the interest paid overall.

  • Extra repayments

Being able to make extra repayments can be a great way to pay off your home loan more quickly. Whether you've had a financial windfall or simply increased your salary over the life of your home loan, you can pay things off sooner.

  • Redraw

Redraw capabilities allow you to draw on funds you've accrued via making extra repayments. It's not a feature you want to use all the time – but it can be handy if you've got a financial emergency.

  • Split loans

Split loans allow you to divide your home loan into a number of different portions, and pay them back as normal. This allows you to take advantage of fixed and variable interest rates, potentially reducing your overall loan costs.

A select range of Newcastle Permanent home loans offer all of these features.

See Newcastle Permanent's loan features


4. Consolidate debt

The cost of living has been hitting hard and making it tough for lots of Aussies to pay off their debts.

So debt consolidation can also be another driver for refinancing a home loan.

This can offer a variety of benefits, including reducing overall interest costs and only needing to make one repayment every month – instead of multiple!

The benefits need to be weighed up carefully, as refinancing debt can cause your credit score to take a temporary hit.

However, it can be an effective long-term financial decision that allows you to repay a range of debt more speedily.

Newcastle Permanent offers a range of refinancing options for debt consolidation.


Start refinancing with the Newcastle Permanent today

Sponsored by Newcastle Permanent. Apply for a new home loan or refinance your existing one online with Newcastle Permanent and you could score up to $3,000 cashback. Application must be completed online. $2,000 cashback for loans ≥$250k, or $3,000 for loans ≥$500k. 80% LVR or less. Offer may be varied or withdrawn at any time. T&Cs, fees, charges and credit criteria apply. Click here for cashback offer T&Cs.

Newcastle Permanent, part of Newcastle Greater Mutual Group Ltd
ACN 087 651 992 Australian Financial Services Licence/Australian credit licence 238273
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