Whether you’re looking to improve your property or reduce your mortgage repayments, refinancing may be an ideal strategy.
Your personal circumstances will change many times over your life, and as a result the mortgage that you have may no longer be the most appropriate.
Refinancing describes the process of changing from one home loan to another and is a fast and flexible strategy to help you adapt to these changes and ensure you’re not paying over the odds on your home loan.
Here are a number of ways refinancing can help you improve your financial position:
• Secure a better interest rate. All indicators suggest that we’re now at the bottom of this current rate cycle, and that any move to the official interest rate by the Reserve Bank of Australia is mostly likely to be up. For borrowers seeking certainty to mortgage repayments, refinancing your mortgage to a fixed rate product may be an effective strategy.
• Unlocking the equity in your home. Maybe you’d like to purchase an investment property but don’t want to spend years saving a large cash deposit? Refinancing can help you unlock the equity in your home, giving you the funds to act now. You can also refinance to unlock equity to renovate and add value to your home – a new kitchen or the addition of another story for example.
• Debt consolidation. If you’ve got a lot of unsecured debt mounting up, such as store and credit cards, refinancing these debts into your mortgage can help make managing your debt easier as well as potentially save you thousands in interest repayments.
Establishing which home loan fits your needs can be quick and relatively stress free. Once you’ve determined your financial goals, we can work with you to identify the most appropriate product to meet your needs as well as help you through the application process.
Just remember that while refinancing has a number of benefits there may be costs associated with switching home loans, such as break fees, new application fees, legal fees and mortgage insurance. We can work with you on highlighting associated costs and determining the best course of action.