Refinancing home loans can be worthwhile if you’re unhappy with your current loan or your financial circumstances have changed. But it’s also a costly and time-consuming business, so you should make sure you’re switching for the right reasons.
People often refinance if they believe they can get lower home loan rates with another lender. But you should make sure this is definitely the case before going through the switching process, as many lenders have low introductory rates that increase over time and there may be associated break costs with your current lender, if you are on a fixed rate home loan.
A simple way to compare home loans is through Choice’s Complete Loan Comparison calculator, which shows you exactly how much you will save if you switch to a new home loan.
You might also want to try changing the terms of your loan to save money – for instance, if you’re currently on a variable rate loan and would like to try a fixed or split rate. While your repayments might become more predictable, you could actually be worse off financially through making this change.
So again, it’s important to compare home loans through Choice’s Fixed and Flexible Loan Calculator, which tells you the exact amount of interest you’ll pay on each loan type.
Features and add-ons are another common reason why people often switch loans. If you want to be able to be flexible in the way you manage your loan, you might want to upgrade to an account with extra features like a debit card, online access or an offset account. Or if you’re not using these and you want to cut costs, you could downgrade to a more straight forward loan.
Whatever your needs, Choice Home Loans can help talk you through the refinancing process. Our mortgage brokers have a wide range of different loan options and can provide expert advice on which new home loan package is right for you.
Refinancing your home loan? Compare home loans and let an experienced Choice Mortgage Broker help you find a home loan rate to suit your needs.
Contact a Choice Home Loans broker
Find a broker
Use our broker services search tool to find brokers available in your area
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).