Mortgage refinancing
Many people start to think about a mortgage refinance when interest rates or their personal circumstances change. A mortgage refinance can be a good solution when you need to consolidate debt, lower your home loan repayments, or access equity in your property. Be aware that there are costs involved in when you refinance your mortgage, so if you are refinancing for what looks like a better home loan, the most important thing to consider is the long term benefits against the actual costs of mortgage refinancing.
Find out if mortgage refinancing is right for you
Before refinancing your mortgage, make sure you get an assessment of how much switching loans could cost you from your local mortgage broker by filling out the form below, or contacting us at any time on 13 LOAN or direct on +61 2 9249 3739.
Points to consider with a mortgage refinance
The main points that you need to consider before committing to a mortgage refinance relate to your motivation.
- Check on exit or deferred establishment fees that you will be required to pay in association with your mortgage refinance.
- What are the establishment fees on the new loan and are there any deals on at the moment?
- If you are refinancing your mortgage to a fixed home loan rate or a honeymoon loan rate, find out what the repayments will be once the interest rate reverts.
- If your mortgage refinance is to access equity, make sure that you have done your sums correctly on your needs and that there is enough equity available in your property to go ahead.
Some other questions you might ask yourself about mortgage refinancing:
- Am I satisfied with the performance of my lender?
- Am I happy with the interest rate I am paying?
- Are my home loan repayments manageable?
- Does my home loan allow me to live my life the way I want to?
- Do I have all the home loan features I need to make paying off my home loan easier?
- Am I using all of the home loan features I am paying for?
- Has my home loan adapted to any lifestyle changes? For example have you retired, changed jobs, had a baby or have your children moved out?
To fix or not to fix?
Fixed home loan rates are often touted as the solution to combating and beating rising interest rates, or simply as a means of security over your mortgage repayment amount.
Although interest rates are currently very low, as always these will rise again in the future. The question of whether or not to fix your home loan is often a difficult one, so the first thing you should do is examine your reasons for considering a fixed home loan rate.
Fixing can be a fantastic option when rates look like they are near the bottom and will soon rise, if it seems interest rates will continue rising for some time, or when you really need certainty around your repayments, but it’s certainly not the only, or even the best, way to tackle the problem of increased repayments.
If you are feeling the pressure, it’s always best to investigate all your home loan options and not just the one that is most common or most talked about.
Mortgage refinance assessment
The fastest way to get a good understanding of your options and find out if mortgage refinancing is the right move for you is to talk to a good mortgage broker about your situation, the costs and the loans available that are in your best interest. Talk to your local mortgage broker or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
