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Refinance Your Home Loan
As we go through life, things change, and our financial situations may change with it. Your family, lifestyle or financial situation may have changed since you bought your home, and you can refinance your home to reflect that.
Refinancing your mortgage means switching your home loan to a new one and getting a more competitive rate as you do it. Choosing the right refinancing loan can help minimise your interest repayments. It may even help you to increase your borrowing power to borrow more money in the future. Find the right loan more suited to your life by working with a specialised mortgage broker who can help you find the right home loan to suit you and your situation.
How To Refinance Your Home Loan
Refinance is a reasonably straightforward process. However, it does require a lot of paperwork, which can be time-consuming. You do not need a deposit to refinance your loan, you can use the equity you have to apply for it. A mortgage broker can help facilitate your loan application. Refinancing involves replacing your existing home loan with a new one so you can receive additional benefits and features. One of the most attractive reasons people choose to refinance their loan is finding a better deal with a lower interest rate or cashback offers. Use the following checklist to determine how you can refinance your home loan.
Step One:
Check current interest rates and compare yours to see if it’s too high
Step Two:
Compare different home loans to see if you can get a better deal
Step Three:
Check if your current home loan has exit or break fees
Step Four:
Work out the cost of your new loan, including application and ongoing maintenance fees.
Step Five:
Speak to a specialised mortgage broker who can help guide you through this whole process
Why Should You Refinance Your Home Loan
Refinancing to a lower interest rate will lower your monthly mortgage repayments. Even a slight decrease can have a high impact on your repayments, potentially helping you over the length of your loan.
There are many reasons why someone may choose to refinance their mortgage. Your personal circumstances may dictate the decision, or perhaps you have the opportunity to get a better deal on your mortgage.
Some of the most common reasons include:
- Expanding your family
- Separation or divorce
- Retirement
- Filing for bankruptcy
- Redundancy
Whether you’re planning for your future or trying to manage new challenges in your life, you may want to consider home refinancing. All it requires is a little forward-thinking and the help of an experienced mortgage broker.
Crest Lending
What are the Benefits of Refinancing Your Home
We’ve discussed the reasons why someone might refinance their home loan but haven’t shared all the benefits. Other than getting a better deal, there are many other benefits to consider.
Pay Off Your Home Loan Faster
Getting a better rate on your home loan means you may have the opportunity to pay off your mortgage sooner because you’re reducing your mortgage balance. This puts you in a position as both a borrower and homeowner because you can release equity much sooner to maximise the return on investment if you decide to sell your property. Use our extra repayments calculator to see how fast you can pay off your mortgage.
Debt Consolidation
Home refinancing allows you to consolidate multiple debts into one mortgage repayment, potentially reducing the overall interest you’re paying on multiple debts. Pay all your debts off in one single weekly, fortnightly or monthly repayment. You can consolidate credit cards, personal loans, car loans and even ATO debts into your home loan.
Unlock Equity
If you’ve repaid a large part of your mortgage, you will have equity which can be used by refinancing your home to fund new purchases and achieve your financial goals. You can even use your equity to reinvest in your property and fund renovations or to get yourself into the investment property market. The amount of equity you can use will depend on your lender – having a specialised mortgage broker work this out for you can ensure you get the option suited for you.
Get Better Mortgage Features
If your financial situation changes, you may find your original home loan no longer meets your financial goals, and the features and benefits aren’t being used at their full capacity. For example, you may be in a position to make additional repayments, however, your home loan may not include this feature. Refinancing your loan could resolve this problem by getting a better deal that allows for more flexibility.
Everyone has a different situation, and it’s worth speaking to a specialised mortgage broker about why you want to refinance your home loan and what features may benefit you in the future.
For more property buying information check out our Home Buyer Essentials Guide
Your Refinancing Specialists on the Gold Coast
Applying for a home loan and refinancing a home loan are both big decisions. Getting expert advice is important and finding a specialist mortgage broker who can guide you to make the right decision for you is essential. Crest Lending is here to help you through the process and find the right refinancing loan for your financial situation. Whether you’re buying your first home, building a home, refinancing to buy another home or investing in property our brokers can provide a solution for you.
Contact us and book a complimentary consultation with our friendly team to discuss your financial goals and how we can help you achieve them.
