March 21, 2017
What is refinancing?
Refinancing lets you change your home loan to suit your new circumstances. We can complete a free Home Loan Health Check to assess whether the original home loan you chose is still the most suitable option for you.
How does refinancing work?
When you take out a new home loan, you use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender, but many people refinance with the lender they've been using for years. If you move to a new lender, that lender will take care of paying out your existing loan.
Should I refinance with interest rate rises?
When the Reserve Bank raises interest rates, banks and other lenders usually follow suit by increasing your mortgage repayments. Refinancing your home loan from a variable to a fixed rate can provide certainty with your repayments.
What do I need to consider when refinancing?
When done properly under the right circumstances, loan refinancing can be very beneficial. However, there are drawbacks involved - namely the cost. The reasons for refinancing should be legitimate and the long term savings should definitely outweigh the short-term costs.
Talk to us today to see how we can assist you.