Day 16: 5 Mistakes Investors Make When Refinancing
Published: January 30, 2026
Reading Time: 6 minutes
Location Focus: National
Mistake 1: Refinancing without comparing rates. Many investors refinance with their current lender without checking if better rates are available elsewhere. This is the most costly mistake because rate differences can be substantial. Always compare rates across multiple lenders before refinancing.
Mistake 2: Ignoring break costs. When refinancing, you may need to pay break costs to exit your current loan. Many investors ignore these costs and are surprised when they discover refinancing will cost thousands. Always calculate your break-even point before committing to refinancing.
Mistake 3: Extending your loan term unnecessarily. Some investors extend their loan term when refinancing to reduce monthly repayments. While this provides short-term relief, it increases total interest paid significantly. Only extend your loan term if absolutely necessary.
Mistake 4: Refinancing too frequently. Some investors refinance whenever they find a slightly better rate. However, refinancing costs add up quickly. Only refinance when the savings justify the costs, typically when you can save 0.50% or more on your interest rate.
Mistake 5: Not restructuring your loan when refinancing. Refinancing provides an opportunity to restructure your loan. You might split your loan between fixed and variable portions, create multiple loan accounts, or restructure to better align with your investment strategy. Many investors miss this opportunity by simply transferring their existing loan structure to a new lender.
Call to action: Ready to refinance strategically? Call Frontier Finance at 0413 798 731. Our brokers will help you avoid these mistakes and optimize your refinancing.