Whether you want to get a better Home Loan deal, to consolidate your debts, or simply because of changed circumstances, refinancing your Home Loan can be very advantageous to if done correctly.
You should consider refinancing your home loan when at least one of the following is true for you:
- You have numerous debts you wish to manage more easily
- You need to reduce your monthly payments, and improve your cash flow
- Looking for a lower rate (compare your rate here)
- You are looking to renovate
- You are considering changing from a variable rate home loan to a fixed rate home loan and vice versa
- You want more features in your home loan
- Your lifestyle changes significantly, requiring adjustments to your outgoings each month
Advantages of refinancing your home loan
- You can save on interest payments and manage your debt more easily
- Monthly payments can be reduced, freeing up money for ‘other things’ Compare here
- You can reduce the fees you pay on an annual basis
- Changing from a fixed rate home loan to a variable rate home loan can enable you to pay off your loan sooner
- Changing from a standard variable home loan to a fixed rate home loan can give you greater control over your payments
Why Wouldn’t I Refinance my Home Loan ?
- There may be significant exit fees on your current loan. Be sure to take all exit fees and application fees into account – sometimes the future savings are not worth the immediate cost
- A new valuation of your home may need to be done. If your new valuation is lower than expected, you will be liable for Lenders Mortgage Insurance
- When the loan to value ratio is more than 80%, Lenders Mortgage Insurance is payable
- There will also be government fees associated with your new mortgage
Need advice to make a well informed and confident refinancing decision?