Many homeowners have built far more equity than they realise – and that could translate into lower mortgage repayments.
 
According to PropTrack, house prices rose over the year to June in 85% of suburbs across Australia, while unit prices increased in 90% of suburbs.
 
Although prices have softened recently, many homeowners have built enough equity to refinance on more competitive terms.
 

Why equity matters

 
Cotality reported that the national median property price fell 0.7% in the June quarter, but values remain well above where they were a year ago.
 
For many borrowers, that means they may now have at least 20% equity in their property – allowing them to refinance without paying lenders mortgage insurance.
Is your current loan still competitive?
 
Competition between lenders remains strong, with many offering lower rates to attract new customers.
 
If you’ve built sufficient equity, refinancing to a comparable loan could potentially reduce your interest rate and save thousands of dollars each year, depending on your loan and circumstances.
 
Even if you don’t switch lenders, understanding what’s available can put you in a stronger position.
 
Many borrowers don’t realise how much their refinancing options have improved. A quick home loan review could reveal opportunities to reduce your repayments.