If your home loan repayments feel like they’ve been creeping up lately, you’re not alone.
As a mortgage broker, I’ve been speaking with many clients who are feeling the pressure of recent interest rate movements. For borrowers on variable rates, repayments may have already increased multiple times over the past period, and for some households, that’s starting to really stretch the budget.
Why Refinancing Isn’t Always Straightforward
A common misconception is that if you can’t meet standard borrowing capacity requirements, refinancing simply isn’t an option.
In reality, that’s not always the case.
I recently worked with a client who was stuck on a high interest rate but couldn’t refinance under the standard servicing assessment due to borrowing capacity constraints. On paper, it looked like they had limited options.
When Policy Makes The Difference
What many people don’t realise is that different lenders assess risk in different ways.
Some lenders have specific exemption policies that allow them to assess refinancing on a “dollar-for-dollar” basis, using a reduced servicing buffer (for example, 1% instead of the standard 3%) in certain scenarios.
In the right situation, this can make a significant difference to the outcome.
The Rresult For The Client
By structuring the application correctly and placing it with the right lender, the client was able to refinance to a lower interest rate, even though they didn’t qualify under standard servicing rules.
The outcome was a meaningful reduction in repayments and improved cash flow.
The Key Takeaway
Every lender has different policies, credit appetites, and assessment methods. What doesn’t work with one lender may be achievable with another if the strategy is right.
What This Means For You
If your repayments are starting to feel unmanageable or you suspect you’re paying more than you should on your home loan, it may be worth reviewing your situation.
There are often options available beyond the standard “yes or no” outcome most people see at first glance.
If you’d like to explore what might be possible for your circumstances, feel free to reach out.