Rates are going up, but our suggestion is to let the lending market cool down a bit first before considering a refinance...as banks are curently changing their rates and discount every day!
When everyone is refinancing out at the same time, the "power of negotiation " is less. So best to refinance when it's less active.
1. The lenders policy - Do they have a flexible policy for you to grow and invest further
2. Serviceability and borrowing capacity - Have you reached their max borrowing capacity. Not all banks made equal.
3. Cost to refinance - Average cost is $700 in total. Extra break cost applies for fix rates.
4. LVR and LMI cost if any - Any loan over 80% LVR may attract a LMI cost, which can be in the thousands.
5. 100% off set accounts - Important feature to have for your principle place of residence for tax reason
6. Interest only and tax advantages - Paying down a investment debt can reduce your tax benefits ( seek independent advice from your accountant)
7. Cash out/ equity required - Not all lenders treat cash out the same, some will have no limit some will have a cap amount.