What are the benefits of refinancing?
Everyone wants to pay off their mortgage as quickly as possible.
Refinancing your loan gives you the opportunity to take advantage of competitive rates and secure a better deal than what you previously had. However, common misconceptions can stop people from refinancing. To make refinancing clear and easy for you, we’ve dispelled these common myths so you can feel confident in your decision making.
Things to consider
When refinancing it is important to understand both the initial costs vs. long term savings of refinancing.
Tally up how much you can save with your new loan and be sure to take into account all costs you may incur leaving your current loan and getting a new loan. While it can seem costly at the outset, paying the fees associated with changing lenders might not impact your bank balance much as your new loan could bring in greater savings through lower monthly repayments and a lower interest rate.
What will you need?
Generally speaking you’ll need to provide your payslips, loan statements, rates notice and identification. If you are self employed or have complex income your Group certificate or tax returns may also be required.
Who can help?
Looking around for top deals that are suitable for you is crucial, and it should be a streamlined process. You don't have to do it on your own as this is well within the capacity of a mortgage broker. Your broker will help you transfer to the new loan and look after the paperwork for you.
What about the fine print?
Don’t be lured in just by low rates. It is a myth that they are the most important factor of refinancing. You shouldn't ignore loan’s lack of flexibility, features or fees. Make sure you’re comfortable with the entire package before making a move.
Refinancing can be an excellent way to save in the long run. Be sure to contact your broker if you’re thinking of refinancing as they can help you navigate the maze of options and can tell you whether your current loan is still presently one of the most suitable for you, or if there are better options out there.