There are a lot of borrowers who look for a better deal especially when it comes to their home loans. A lot of changes may happen in a year – your personal and financial situation, interest rates change and sometimes banks start to compete for a better strategy for their business. If you find yourself in this kind of situation and you think that your current home loan is no longer ideal to your needs then this is where you can consider the possibility of refinancing.
What is Refinancing?
Refinancing is the process of paying off your current home loans by acquiring a new loan from either your existing lender or from a different one. This can help you repay your home loan faster and at some point save on interest. Additionally, it can also help you lower down your monthly repayments and consolidate your debts. However, you need to determine first, if you really need to refinance your home loan and here’s a few things that you need to consider
- There’s a major change in your financial status such as job change
- Your lender’s rate is not competitive with other players in the market
- You want to avail of a loan consolidation
- Finding other ways to finance your child’s education, home renovations or probably invest on another property
- You want to consider switching to a fixed rate
In a much simpler term, refinancing will allow you to get a new loan and use the funds to pay off your existing loans. You need not worry though as your lender takes care of the process and will be the one to send checks and payments to other institutions that you are indebted to.
Finding other ways to finance your home renovations, holiday ,debt consolidation or probably invest on another property
- Know the fees and charges
- Borrowing costs like upfront fees, legal fees, application fees, valuation fees
- Stamp duty and other fees
- Consider the term of the loan
- New interest rates
- Your income security
- Plans of relocation or selling the property
In short, before refinancing your loan, make sure that you have carefully studied your current and future financial situation. You don’t need to hurry and decide at once because at the end of the day you are responsible in making sure that your payments are up to date to avoid further inconvenience that would highly impact your financial scores.
For all your refinancing needs, we are here to assist you to find the right home loan and to get it approved. .
Contact us todayon – 0432 297 651
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