What you need to know about refinancing

The home finance environment evolves quickly with different options, rates and add on’s becoming available all the time. Your personal situation also changes often. It makes sense for you to review your home loan now and again to see if an option with greater flexibility, beneficial extras or a lower interest rate has become available.

Some reasons to refinance
Here are just a few reasons why you might consider refinancing:
  • Get a better interest rate or lower fees or to get new features such as flexible repayments, redraw facilities and account splitting to save money
  • To access equity for home renovations or to invest elsewhere (which in some cases may offer tax benefits)
  • To get a loan more suited to your changing needs such as starting a family, buying or selling an investment property or changing jobs
  • Consolidating debts into your home loan to save on interest and to simplify repayments
  • Exploring options toward the end of a fixed rate term.

When you should refinance your home loan
This one is quite simple. When a home loan that better suits your needs becomes available or will assist you to pay off your mortgage and own your home faster, that’s when it’s time to refinance. The tricky part is knowing when these opportunities arise – this is where I come in.

With a competitive home loan environment and plenty of lender marketing there always seems to be cheaper options out there. It’s essential however to look at costs beyond the interest rate. It’s important to compare because the cost of refinancing, ongoing fees and home loan product add on’s can mean a new, seemingly attractive offer can actually be more expensive in the long run.

Meeting with me regularly will ensure you always have the right loan for your current needs and future goals.

What’s involved in the refinancing process
Firstly, you should meet with me when your situations change or if you haven’t reviewed your home loan in over a year. I can review your situation and compare over a thousand loans to see if there is a better suited option for you now.

If refinancing is the right option, the application process is similar to a regular home loan application and I can do most of the leg work for you.

Once the new home loan is approved by the lender, the approval documentation, including any special conditions, will be sent to you to accept and return. The repayment and discharge of the existing home loan will be arranged by the lender and the new home loan will be in place for you.