With interest rates constantly changing and new home loan packages on offer from Australia’s top lenders every week, it really does pay to check whether your interest rate is still competitive or whether you could be getting a better deal.
Here we explain the multitude of ways you could benefit from refinancing your home loan.
By refinancing to a home loan with a lower interest rate, your fortnightly or monthly repayments will be lowered. Lower repayments means extra money in your pocket to put towards savings or you could choose to put this extra money towards your mortgage to help pay it off faster.
Pay Your Mortgage Off Faster
Refinancing to a home loan with a lower interest rate and lower repayments puts you in a much better position to pay off your mortgage faster and be debt free sooner. If your repayments were reduced but you maintained your original payments, you could shave years off your mortgage as well as potentially saving yourself thousands in interest.
Lower Your Interest Repayments
Over the life of your loan, you could save thousands of dollars in interest repayments by refinancing to a lower interest rate. For a $500,000 home loan with a 30 year term, a 0.5% reduction in interest could save you up to $75,000 over the life of your loan!
Equity is the difference between the value of the property and the value of your home loan. So for a $500,000 house with a $350,000 home loan, you would have $150,000 worth of equity. When you refinance you have the ability to unlock the equity in your home which you could put towards renovations, a deposit for a new home/investment property or big-ticket item like a car.
If you’re like most Australians, your home loan is probably not your only form of debt with most people also having car loans, personal loans and credit cards to their name. When you refinance your home loan, you may choose to incorporate your other exiting debts into your new home loan package. By doing so, you stand to save a significant portion in interest and repayments.
Often people think that the hassle of refinancing isn’t worth the benefits, at Mortgage Choice we make the process simple for you. We can search through our wide panel of lenders and home loan packages to find you a competitive rate and the best overall package. We’ll take care of all the paperwork and ensure a smooth stress-free process for you.
If you’re interested in refinancing, speak to one of our expert brokers, call us today on 07 3211 7744 or book an appointment here.