2. Access equity
Refinancing is also an opportunity to tap into any home equity you’ve built up. Your home is likely to be one of your most valuable assets, and by harnessing home equity you have the opportunity to build additional wealth or simply achieve personal goals.
Want to renovate or upgrade? You may be able to draw down on your equity to help fund it or even upgrade your home, purchase an investment property or guarantee your child’s first home.
3. Switching between fixed & variable
If you'd prefer the certainty of repayments will stay the same for a period of time, you may wish to switch to a fixed rate. Refinancing your home loan lets you do this. Or, you may decide you'd like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future.
4. To consolidate debt
Refinancing your home loan can provide an opportunity to streamline your debt, and potentially reduce the overall interest you're paying on multiple debts through the process of 'debt consolidation'. It means folding several high interest debts into one lower rate debt – which could be your home loan - and this may reduce your total monthly repayments.
Your financial wellbeing is important to us.
At Mortgage Choice we know that everyone’s situation is unique. By giving us a call today, we can fast track your home loan health check to let you know sooner if refinancing is the right option for you.