The benefits of refinancing

August 14, 2013
David Scouller

In today’s competitive mortgage market it makes senseto review your loan - there can be good reasons toconsider refinancing.With so much choice in the home

With so much choice in the home loan market, it’s essential to review your loan at least annually to ensure you’re enjoying a competitive rate with access to the loan features you need.

If your current loan isn’t ticking all these boxes, the process of refinancing - switching to a new loan or lender, is very straightforward.

However for many home owners refinancing isn’t about a lower rate. It can also provide opportunities to achieve important personal goals

Streamline debts

Debt consolidation is a common reason home owners choose torefinance their loan. It involves rolling, or ‘consolidating’ several highinterest debts like a personal loan or credit card into one low rateloan – often a home loan.

By reducing the overall rate you pay, consolidation has the potentialto lower overall monthly repayments. These savings can free upcash for additional repayments, thereby helping home owners getfurther ahead with household debt.We can explain how you could benefit from debt consolidation,and help you weigh up the possible costs of refinancing againstthe potential savings.

Access home equity – to invest, improve or enjoy

Refinancing can also provide an opportunity to tap into homeequity – the difference between your home’s value and thebalance of your mortgage.If you’ve owned your home for a while, you may have a reasonablelevel of equity. It’s an asset you may be able to access byrefinancing rather than selling up, and there is a variety of ways toput home equity to work.As a guide, it may be possible to use your equity as a deposit onan investment property in lieu of cash savings.Or you could use the funds made available by refinancing tocomplete renovations that can boost the value of your home and make it a more enjoyable place to live.

Free Home Loan Health Check

If your present loan has been in place for some time, it’s worthwhilechecking that it is still the right choice for you – particularly intoday’s low rate environment.Our free Home Loan Health Check will show how your loanstacks up against others on the market. It’s quick, easy and itcould see you enjoy savings with a lower rate, better featuresor simply help you build wealth

There has never been a better time to shop around for a better rate with so many great deals on offer. Please call me today for a free Home Loan check up on 0414 259 699

Posted in: Refinancing

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