Refinancing is a process that
involves obtaining a new loan to replace an
existing one, typically to
obtain better loan terms or to access cash. The process is
similar to
applying for an original loan, but
it is typically faster since you have an established
credit
history. Once you submit a refinancing
application and get approval from the lender, the new
lender will pay off your existing loan, and you
will start making payments on the new loan.
Refinancing can help you find a loan
that aligns better with your current
financial needs and
objectives. So, take some time to carefully consider what you hope to
achieve through refinancing
and whether it's the best option for you.
There are several compelling reasons to consider refinancing your home loan.
Refinancing also allows you to switch between fixed and variable rates, depending on your financial goals and preferences. When your financial needs and circumstances evolve over time, refinance gives you access to different loan features that better suit your needs now, such as offset accounts or redraw facilities.
Refinancing can also be a smart way to tap into the equity in your home, which can provide a source of funding for important expenses. By refinancing your home loan, you may be able to access this equity to invest in property, grow your wealth, renovate your home or pursue personal goals.
Refinancing your home loan to obtain a more competitive interest rate can lead to significant savings over the life of your loan. However, it's important to consider the associated costs and fees that may come with switching loans.
If you have multiple debts, refinancing can be a way to consolidate them into a single loan, simplifying your finances and potentially reducing your overall interest costs.
As the home loan market is constantly evolving, so are your requirements. To ensure that your current home loan still meets your needs, we suggest that you connect with your mortgage broker at least once every two years to conduct a home loan health check.
Working with a Loan Concern Broker can simplify this process for you, so you can sit back and enjoy the advantages of refinancing.
Try our range of calculators to know your borrowing capacity, home loan repayments, stamp duty, savings targets and many more.
