The do’s and don’ts of refinancing your home loan

Remaining aware of your home loan status is an important part of making sure that everything is running smoothly for you and your repayments.

If you're not meeting your repayment obligations comfortably, or you feel like you could be on a more competitive interest rate, you may wish to consider home loan refinancing.

While this isn't a decision to take lightly, refinancing could help you get into a better financial position and achieve your other financial goals.

One of the main reasons people refinance their home loans is to take advantage of a better interest rate.

Getting a lower, more competitive interest rate could help lower your overall monthly repayments without altering the amount of interest you pay over the term of your loan.

Finding the right loan for you means finding the perfect balance between competitive interest, loan fees and overall flexibility which suits your circumstances perfectly.

However, if you're struggling to meet your repayment obligations, extending the term of your loan in order to lower your monthly obligations could be an option for you.

While this means you may end up paying more in interest over a longer period, it will free up money in your day-to-day life for other expenses.

This can help give you and your budget a little bit of breathing space, especially if you're going through a rough patch financially.

Of course, it's entirely possible to increase the amount you pay each month on your home loan, reducing the amount of time and interest paid significantly.

Whether you wish to increase your regular payments, make them more frequent, or gain more liberties with making lump sum repayments, refinancing your home loan can help you achieve just that!

However, before you decide that refinancing is right for you, get in contact with a home loan expert. These professionals will be able to asses your situation and give you tailored advice for your circumstances.