If your circumstances or needs have changed, refinancing is often the right solution for you
Refinancing your current loans can be a great way to improve your overall financial situation. The 2 main purposes of refinancing your loans are to reduce your costs or to grow your asset position.
The current market is ever changing, the value of your property may be very different now to what it was 12 months ago. You may have much more equity in your property than you could have imagined. This situation lends itself to taping into available funds you may not have realised you have.
Refinancing an existing loan can open up many opportunities to enhance your wealth creation. By obtainiing these extra funds, you could look to buy another property, improve your current home or simply reduce your monthly commitments.
Interest rates are at an all time low which means the cost of borrowing funds is far cheaper now than it was in the past. On a practical level, you may not need to sacrifice a significant amount of your day to day cash to support a new loan.
If your objective is to reduce your overall expenses, refinancing may suit you. Consolidating several loans such as personal loans, car loans or credit card debts can result in a lower total repayment as one new loan is often the cheaper option.
There are so many lenders available to us all with different products. It is essential to use a finance broker who has a good understanding of what is available today.