July 08, 2013
Is it worth refinancing your current home loan?
A quarter of a percent may not seem like much, but apply a 0.25% saving over the life of a home loan and you could be talking about the equivalent of a new car.
Small differences in loans, like the ability to make extra repayments, marginally lower interest rates, or offset accounts, can add up to huge differences over the life of a loan.
Refinancing is an increasingly popular method of accessing the existing equity in your home. Equity is the difference between how much you still owe on your home loan and how much your home is worth. There are many reasons why people refinance their home loans including:
- the option to roll all your debts into one.
- to take advantage of a cheaper interest rate or lower fees.
- to take advantage of other features offered by other products.
- to switch from a fixed to variable rate loan, or vice-versa.
- to access the equity in your home to use for renovations, holidays, other investments etc.
Would you be better off with a different loan? We’ll help you crunch the numbers, including any discharge fees you have to pay on your existing loan, to give you a definitive answer in dollars and cents.
If we don't think it is worth refinancing we will tell you to stay with your current lender.