Refinancing simply means changing from one home loan to another, to improve your financial position. Changes in your personal circumstances, or in the home loan market, may mean it’s possible to get a better deal than your existing loan.
Time to review your home loan?
As your situation changes over time, it’s important to regularly review your mortgage arrangements. Perhaps your income has changed, your family has grown or your credit card debt is proving unmanageable. Or perhaps it’s time for that long-awaited renovation. The process of reviewing your home loan can provide significant savings.
Some of the situations where you may consider refinancing your home loan include:
If you think the interest rate and/or fees you are currently paying are not competitive.
If you have mounting debt from a number of sources, including credit card debt, which you would like to consolidate to save interest
Unlocks equity in an existing property to fund an investment property or other major financial commitment
Offers improved flexibility and payment arrangements to better suit your circumstances
Secures a lower interest rate on your home loan to save significant interest payments
Lets you manage your debt more effectively and regain financial control
Weighing up the benefits
As you investigate your refinance options, remember there may be costs involved in paying out your existing mortgage loan, and establishing a new one.
These costs need to be considered to ensure you really are saving money by refinancing.
Your Choice Home Loans broker can help you complete a mortgage health check. They’ll help you find a better interest rate or adjust your mortgage to suit new investment plans. They’ll also ensure that the benefits of refinancing far outweigh the associated costs of paying out your existing loan to establish a new one. You’ll feel confident you’re getting the best deal possible and are on track to achieving your financial goals.
If you’ve paid off a significant amount of your home loan, a home equity home loan could unlock a range of new opportunities. Find out more about equity home loans.
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