Whether you’ve not considered refinancing before, or you’ve started some research, it can be difficult to know where to start with reviewing your current loan and how to find if there’s something better out there for you.
But that’s why we’re here. If you’d like to learn more about how refinancing could help you, read on.
Quick tip: Refinancing is also known as ‘refi’ – just in case you’ve heard the term thrown around or you’d like to throw it around yourself.
What is refinancing and why consider it?
Refinancing your home loan essentially means you’re taking out a new loan to pay off your current loan.
Why would you want to do that? Whether you’ve had your home loan for a number of years and it’s no longer meeting your needs or your financial situation has changed, you can look into a range of different home loans on the market that may offer superior features and add-ons to better suit you.
The main reasons to refinance your home or investment loan:
- To take advantage of a better interest rate
- You’d like new features or add-ons to your loan
- Your property value has increased (you may receive a better interest rate as a borrower with more equity)
- Use the equity on your home, for example, to invest in property or renovate
- Consolidate your debts to make managing your money easier
Whether you have a specific reason as to why you want to refinance or not, it’s good to know what’s on the market from time to time. Home loan products can change so much over the years. Your Mortgage Choice broker can help you take advantage of a loan more suited to you.