The facts about refinancing your home loan

Posted on: 18.07.2017

Home loan refinancing – the facts to consider!

Today we look at the reasons you would look to refinance your home loan and why. When you take out a home loan it is generally for a 30 year term, however, this doesn’t mean that you have to stay with the one bank.

Mortgage holders may consider refinancing for one of the following reasons:

1. Renovations: If you are wishing to complete renovations on your property, you can access the equity in the property to be able to do this. To get started you want an idea on how much you would like to spend on the property, and an estimated value of the property both as is, and as if complete. Speak to your broker to go over the costs associated with accessing the equity, and recommended strategies regarding the financing component.

2. Lower interest rate: In my experience less than 50% of the people that I speak to know what their interest rate is. This also means that when I complete a free mortgage review for potential clients and I tell them that they can save thousands of dollars per year on their mortgage by doing nothing they usually do not believe it. It is very important that you speak with a broker that not only organises your initial loan but is always reviewing your loan to ensure that you are continuing to get the best loan.

3. Change your loan product: You may want to change to a fixed rate loan, or maybe you want to have a combination loan of fixed and variable. There are literally hundreds of different types of loans out there to choose from, and not all of them will suit, it is very important that you seek professional advice to ensure you know all the in’s an out’s of a product.

4. Buying a new property: Maybe you’re looking at turning your existing family home into an investment property, and finding a new home. This is one of the most important times to seek advice. From your very first property through to your 100^th, it is so important to ensure that your loans are structured in the correct way. I see it all the time where clients end up costing themselves so much money and stress because they have been given the incorrect advice, It is very important that you contact your mortgage broker and ensure that you are being looked after correctly.

There is so much more to refinancing then just seeking the best interest rate on your mortgage. You may be getting the best interest rate, but costing yourself more by not having an offset account attached, or maybe you use your redraw facility all the time and cost yourself $50 every time you draw out money from your mortgage. A free mortgage review is something that we offer our clients annually and we do this because we think it is so important for mortgage holders to ensure that their mortgage stays best suited for their needs based on their current circumstances.

Don’t just let another thousand dollars walk out of your pocket and into the banks, talk to us now to arrange your free mortgage review.