EP. 359: The Refinance Playbook: The Numbers, Strategy & Timing Explained

🎧 This week on The Property Trio, Cate, Dave and Mike unpack a great listener question from Greg that’s more relevant than ever: How do you know if refinancing is actually worth it? Greg reached out after listening to our mortgage myths episode, asking how borrowers should weigh up the savings versus the costs of changing lenders. It’s a smart question, because refinancing is rarely as simple as chasing the lowest advertised rate. Dave explains that while interest savings matter, strategic lending outcomes can matter even more. A refinance may improve cash flow, unlock equity, increase buffers, optimise offset accounts, restructure repayments, or strengthen tax effectiveness. In many cases, the real value isn’t just the cheaper rate…. it’s the better long-term position. The trio then break down the two key elements of refinance costs: the cost of leaving your current lender, and the cost of setting up with a new one. They cover fixed-rate break costs, discharge fees, package fees, mortgage registration charges, valuation costs and why larger portfolios can carry higher switching expenses. They also answer a common misconception: no, you generally don’t pay stamp duty again when refinancing. But borrowers with loan-to-value ratios above 80% may need to consider Lenders Mortgage Insurance (LMI), which can significantly affect the numbers. From there, the conversation moves into the practical side of decision-making. Dave shares how professionals assess a refinance properly; comparing realistic savings over a two to three year timeframe, rather than theoretical 30-year figures. Offset balances, cash-back offers and changing borrowing capacity all play a role. Most importantly, the team discuss the growing risk of becoming a “mortgage prisoner”, (someone who could refinance today, but may not qualify after future rate rises or tighter lending policy.) They also tackle fixed rates, split loans, and whether certainty can sometimes be worth more than chasing the absolute lowest cost. If you’ve ever wondered whether refinancing is worth the effort, this episode is packed with practical insights, strategic thinking and timely reminders that doing nothing can sometimes be the most expensive decision of all. ….. and our gold nuggets: Dave Johnston’s gold nugget: Mike recounts some of Dave’s great advice for multi-property investors; finance is complex, and future moves can be undone by poor loan structuring. Cate Bakos’s gold nugget: This is one key reason why a strategic mortgage broker is so valuable. Unlike a bank, (which won’t refinance a client to another lender), a broker will be impartial and provide suitable refinance advice. Banks don’t have a legal obligation of the “best interest duties” (BID) like brokers do. Dave Johnston’s gold nugget: Refinancing isn’t about chasing the lowest rate. It’s about finding the right product for you.” Follow Cate Bakos - Cate Bakos Property Facebook:   / catebakosproperty   Instagram:   / cate_bakos_property   Linkedin:   / catherinebakos   Website: https://www.catebakos.com.au/ Follow David Johnston - Property Planning Australia Facebook:   / propertyplanning   Instagram:   / propertyplanningaustralia   Linkedin:   / property-planning-australia   Website: https://propertyplanning.com.au/ Follow Mike Mortlock - MCG Quantity Surveyors: Facebook:   / mcgquantitysurveyors   Instagram:   / mcgquantitysurveyors   Linkedin:   / mcg-quantity-surveyors   Website: https://www.mcgqs.com.au/