Interest rates have risen dramatically within the past few months, making the idea of refinancing your existing home loan worth some serious thought. With all the major banks implementing interest rate rises, it makes for a very competitive market. However, there are also some extremely good refinancing deals currently available.
What is refinancing?
Refinancing is the process of taking out a new home loan either with your existing bank or another bank for the purpose of saving money on interest through lower rates or achieving more affordable repayments or with the intention of paying your home loan off sooner.
What is involved?
To refinance an existing home loan, you will need to thoroughly compare the mortgage refinancing options that are currently available. Once you have decided who you want to refinance with, you will need to complete a mortgage application with your chosen lender. When choosing a lender, it is important to compare apples with apples as well as to consider all the features of the loan options. This is where using the services of a mortgage broker can come in handy. Our specialist Home Loan Consultants can compare offers from dozens of the best bank and non-bank lenders on your behalf to find the best options to suit your individual refinancing needs.
The pros and cons of refinancing
Refinancing for the purposes of getting a lower rate, lower repayments or paying your mortgage off quicker are all smart reasons to refinance your existing home loan. However, it is important to consider both the pros and cons of refinancing. Make sure you check the fine print on your current mortgage contract, whether you’re on a fixed term or whether there are any early exit fees or penalties that you need to consider or that could make refinancing a less cost-effective alternative.
How much could I save by refinancing?
The best way to see how much you could save by refinancing your existing home loan without submitting applications and putting enquiries on your credit file is to use our smart Mortgage Refinance Calculator to compare your current home loan with potential refinance options. The other way to see how much you could save by refinancing is to speak to one of our friendly Home Loan Consultants today on 1800 538 287 for an obligation-free chat about your refinancing needs.
