Refinancing FAQ's

March 21, 2017
Becky Thomas

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.

Posted in: Refinancing

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