If you purchased your home a few years ago, your lifestyle, family or financial situation may have changed, so refinancing can be worth considering. Refinancing involves replacing your existing home loan with a new loan that may better suit your needs.
What are the benefits?
- Securing a lower interest rate: you might not only save money, but also find yourself in a better position to pay off your home loan sooner.
- Shortening your loan’s term: switching to another loan with a lower interest rate but with similar monthly repayments can shorten the term of your loan.
- Switching between fixed and variable rates: you might be coming to the end of your fixed rate term and want to switch to a variable rate. Alternatively, you may want to lock in a low interest rate and fix all or part of your home loan.
- Consolidating your debt: you may be able to simplify your debt situation by combining multiple debts, such as credit cards and personal loans, with your home loan.
- Accessing the equity in your home: there may be extra value in your property that you can use for renovating your home, investing, or for planning a holiday.
- Benefiting from enhanced loan features: a new loan may include features that better suit your current circumstances and how you want to access your money, for example, a redraw facility or offset account.
What are the costs?
You are likely to incur mortgage discharge fees and may be liable for exit or break fees on your old loan. Your new loan may be subject to establishment and setup fees, and lenders mortgage insurance (LMI) may be required if you are borrowing an amount with a high LVR.
Make your move with an award-winning lender
We strive to develop high-quality home loans that deliver great value, flexibility and innovative features. Proudly named InfoChoice’s 2020 Home Loan Lender of the Year in the Customer Owned Category, view our full range of competitive home loans. Our Momentum Home Loan makes refinancing from another financial institution easy, and was recently named Money magazine's Best Value Flexible Home Loan Bank Product 2021.
If you’re unsure about refinancing, our free Home Loan Health Check can help take out the guess work. Contact us on 1300 364 400 or connect with a Mobile Lender.