Refinancing your home loan when starting a family

Rates and fees last updated on

If you’re a soon-to-be parent, now is an ideal time to review your home loan and shop around for a better deal.

Refinancing your home loan when starting a familyAs you prepare for parenthood, you need to evaluate your lifestyle and start thinking long term. Now is a good time to assess your home loan to make sure your mortgage is fulfilling your needs, not only for you and your partner but for the little ones to come.

Trading in a high-interest home loan for a lower rate can lead to significant savings in the form of lower repayments and useful features that will better cater to your planned lifestyle. Refinancing is not only an opportunity to reap cost savings, it also offers a way to build equity and take advantage of more flexible terms and features.

Make sure you speak with a trusted mortgage broker and financial planner before making the change.

What you need to consider before refinancing

  • Lifestyle change. Before you refinance, decide whether your current property will satisfy your future lifestyle needs. Do you need to renovate and extend the property for an additional bedroom? Or will you need to move into a larger property down the track?
  • Budgeting. When you sit down to work out your budget, you’ll need to factor in the additional cost of having kids. Have you considered the cost of childcare and additional living expenses? Will you be able to afford your child’s education? How much time can you afford to take off work? Do you have a contingency buffer for unexpected medical costs? Make sure that you plan and budget according to your future needs. This is particularly important if you decide to take time out of the workforce following the arrival of your baby and your household income decreases as a result.
  • Finance options. If you’re thinking of having kids in the near future, you may want to scout for a home loan with lower rates or fees or a mortgage that allows you to access equity. A fixed rate mortgage may also be suitable if you want the certainty and security of knowing what your repayments will be month to month.

How soon-to-be parents can go about refinancing

Refinancing your home loan when starting a new family - 2

  • Review your needs. As you plan for your parenting years, you need to evaluate your lifestyle and budget and how this will impact your borrowing needs. Do you have enough room in your home to start a family? What degree of risk are you comfortable exercising with your finances? How can you protect your assets to ensure a financially stable future?
  • Check finances. Now is the time to speak with a financial planner about how you can build wealth for your family. It’s a good idea to lessen the burden of debt before the arrival of your child as this can give you a headstart. Refinancing can be an effective option for many soon-to-be parents, but you should also review your financial and investment strategies to consider alternative ways to build wealth such as a high-interest savings account, superannuation or property investing.
  • Speak up. Speak to your current lender to negotiate a lower rate. With a competitive home loan market, many banks are willing to negotiate a better interest rate in order to retain your business. However, if you find that the features or terms of your existing mortgage no longer fulfill your needs, then it may be time to move on.
  • Crunch the numbers. Estimate the cost of refinancing with a new lender. Keep in mind that you’ll need to pay a discharge fee (around $150-$350) to exit your current loan as well as upfront fees such as an application fee with your new lender. Use our switching cost calculator to get an estimate of your total refinancing cost. Remember to consult your accountant or financial planner to help you with the numbers.
  • Compare home loans. Speak with a mortgage broker to discuss the type of loan that will best complement your borrowing needs. Maybe you need a home loan with an offset account to help you reduce the amount of interest payable over the life of the loan, or maybe your priority is with a home loan that offers a portability feature if you decide to move to a larger property.

Compare competitive home loans today

Rates last updated September 20th, 2017
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Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.64%
4.83%
$0
$0 p.a.
95%
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.49%
4.47%
$0
$375 p.a.
90%
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.74%
3.74%
$0
$0 p.a.
80%
Combine a low variable interest rate and free redraw with no application or ongoing fees.
3.69%
3.72%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.72%
3.74%
$0
$0 p.a.
80%
Take advantage of a 100% offset account along with no annual or application fees.
3.79%
3.84%
$445
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.86%
3.87%
$0
$0 p.a.
80%
Pay no ongoing fees on a competitive variable rate home loan.
3.69%
4.86%
$0
$395 p.a.
90%
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.74%
4.06%
$0
$299 p.a.
95%
A loan with no application fee and borrow up to 95% LVR.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.84%
3.84%
$0
$0 p.a.
110%
Requires a family member to act as guarantor. Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.68%
3.69%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.64%
3.64%
$0
$0 p.a.
70%
A basic low-rate home loan that still offers some useful features.
3.74%
3.75%
$0
$0 p.a.
70%
A special variable rate home loan with no application or ongoing fees.
3.97%
3.99%
$0
$0 p.a.
90%
A great interest rate home loan offer with unlimited redraw and unlimited extra payments.
3.74%
4.81%
$0
$0 p.a.
95%
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.84%
3.84%
$0
$0 p.a.
90%
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.88%
4.89%
$0
$395 p.a.
95%
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.97%
3.97%
$0
$0 p.a.
80%
A competitive variable rate home loan with no ongoing fees.
3.72%
4.19%
$0
$0 p.a.
80%
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.64%
4.03%
$0
$395 p.a.
80%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
4.09%
4.12%
$0
$0 p.a.
80%
Access the equity in your home with a competitive interest rate and no application fee.
3.99%
4.02%
$395
$0 p.a.
80%
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.69%
4.45%
$0
$375 p.a.
90%
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.83%
3.83%
$0
$0 p.a.
70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.78%
3.78%
$0
$0 p.a.
95%
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.89%
3.91%
$0
$0 p.a.
80%
Package your owner-occupied loan with your investment loan and enjoy low rates for both.
3.69%
4.73%
$0
$0 p.a.
95%
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.79%
3.92%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
4.09%
4.11%
$0
$0 p.a.
80%
A low variable rate loan with no application or ongoing fees.
4.19%
4.19%
$0
$0 p.a.
90%
100% offset account, unrestricted additional repayments and no monthly account keeping fees
3.99%
4.77%
$0
$0 p.a.
95%
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.74%
4.85%
$0
$0 p.a.
95%
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
3.54%
3.54%
$440
$0 p.a.
80%
Borrow up to 80% LVR with no ongoing fees and a 100% offset account.
4.33%
4.33%
$363
$0 p.a.
70%
A variable home loan with $0 annual or monthly fees.
3.80%
3.81%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.03%
4.07%
$0
$0 p.a.
95%
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
3.88%
4.47%
$0
$0 p.a.
95%
This competitive introductory rate is a limited time offer for new owner-occupiers
3.68%
3.69%
$600
$0 p.a.
90%
Get a low variable rate along with some important basic features.
3.79%
3.79%
$0
$0 p.a.
80%
Minimum loan amount for this basic home loan is $750001.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Lock in a fixed interest rate term for repayment certainty.
3.69%
4.03%
$0
$299 p.a.
80%
Enjoy a low variable rate with no application fee.
3.99%
4.99%
$0
$395 p.a.
95%
A package home loan with fee free extra repayments available during the fixed term.
3.99%
4.98%
$0
$395 p.a.
95%
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99%
4.90%
$0
$395 p.a.
95%
Lock in a discounted fixed rate with a low service fee.
3.65%
3.66%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.

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Planning for parenthood is an exhilarating time, which is why it pays to reconsider your home loan and opt for a more competitive product so you can secure your family’s future.

Images: Shutterstock

Belinda Punshon

Belinda is a journalist here at finder.com.au. Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

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