Why you should consider refinancing your Home Loan or Investment loan
Refinancing a mortgage in essence occurs when an existing loan is paid down and replaced with a new one. The common reasons why you refinance:
- Finance circumstances have changed to the initial loan application
- To obtain a lower interest rate
- Dissatisfaction with current lender
- Intending to convert from a variable to a fixed rate (or vice verse)
- To access current home equity to finance other purchases
- To access current home equity to consolidate debts
If you are considering refinancing contact us for an obligation free quote. The only time to consider refinancing is when you’re certain that it is in your interests. When you contact us, we will review to see what we can do for you.
Should you refinance for a better deal?
Taking advantage of lower interest rates to bring down the overall cost of servicing a loan is a major reason. But it’s not always the best, or the only, option.
There are many different factors borrowers need to consider when thinking about refinancing a loan.
The first step is to contact us about your needs and whether you can afford to service a different loan structure.
We’ll discuss about your existing loan, repayments and the structure of the facility.
The current value of the property is taken into consideration.
Then we will have a look at the various loan options and figure out whether it’s worth it for you to refinance. It’s not usually worth it if it’s only going to save a couple of hundred dollars a year, taking into consideration exit and application fees. But if it’s going to save upward of $1000 a year, refinancing might be a sensible approach.
Another key consideration is lenders’ mortgage insurance (LMI). If switching loans means you will need to pay LMI again, sometimes it’s not worth refinancing. Contact us to find out.
If you want to refinance just to lower lending costs, ask us to negotiate with the bank for a lower rate.
If you do decide to go down the refinancing path, working with us rather than going straight to a bank has advantages because as your finance broker we have access to loan options from many different lenders.
We can compare lots of different lenders for you and we are always working to give you great advice.
If you’re interested in lowering the costs of your loan contact us now.