Is Home Refinancing Worthwhile, How to Refinance Your Mortgage
By Loan Market
Despite the potential for interest rate rises over the coming months and the rises we have seen over the last year, many Australian home owners are hesitant to refinance their home loans because they believe it will be too much trouble due to the fees and paperwork involved.
In reality, the differences between lenders and the interest rates and conditions they offer has never been wider, and this may provide home owners with numerous benefits.
Just one of those benefits is taking the opportunity to reduce debt on credit cards, which have interest rates often more than triple that of an average variable home loan.
And there is the prospect of achieving significant annual savings by shopping around and getting a better deal on a mortgage with a much more competitive package. If you're borrowing more than $250,000, then the savings can be even greater.
Refinancing is also often a simpler process compared to applying for a new loan. Mortgage holders might have to accept some exit fees from their original lender, but it can be worth it if they can negotiate a significant reduction on their interest rate.
Loan Market is well placed to review an existing home loan to determine whether a borrower can get a better deal, and whether the costs involved in changing are worth the effort.