Why should I refinance?

Why should I refinance?

Refinancing is a process where your existing home loan is replaced with a new one. However the reason you select a new loan, depends on the specific purpose or purposes you have.

One of the first questions our brokers will ask you in the refinancing process is, are you looking to lower your repayments or are you looking to use your existing equity to free up cash for investments, renovations or debt consolidation? Generally speaking, if you’re looking to lower your repayments your loan amount will stay the same but may have a different rate or structure. If you are looking to free up equity, you will be taking on a larger loan amount and potentially higher loan repayments. Having established these key differences, it’s important to know the major steps involved in each and the key points to consider. Why should I refinance?
  • To lower repayments
  • Access equity
  • Consolidate debt
  • Renovate
  • Investment loan

Should I refinance to lower my repayments?

For many borrowers, their existing loan may no longer have a competitive rate or have the features needed to reduce interest charges.

Refinancing to lower your repayments is popular but you’ll need some help to make sure there’s no hidden costs and your new loan is structured properly.

How to lower your repayments by refinancing

The three most basic ways to lower your repayments are by either finding a lower interest rate, adjusting your repayment frequency or by using loan features that you’re old loan didn’t have.

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