April 12, 2016 by Angela Kemp
Not sure whether you’re getting a good deal on your current home loan? It could be time for a home loan health check.
Chances are if you’ve had your current home loan for a few years, you may not be getting the most competitive rate on the market and could benefit from a review of your current financial situation.
So what are the main benefits of refinancing?
To get a lower interest rate
Many people switch lenders in order to get a more competitive interest rate and reduce their monthly repayments. However, it’s important to take into account the costs associated with switching lenders, as your current lender may charge you break costs (or exit fees).
To unlock equity
You may wish to access the equity you have in your home for a range of purposes. For example you may want to purchase an investment property, complete home renovations or purchase a new car. By refinancing, you are able to access the equity that you’ve built up in your home.
To consolidate debts
You may wish to consolidate debts such as credit cards or personal loans by rolling them into your home loan. This reduces the overall interest you are paying on multiple loans, making your monthly repayments much easier to manage.
To access specific loan features
Perhaps your fixed rate term is coming to an end, or your home loan product is no longer suitable to you. You may wish to access a loan product that offers additional features such as an offset account, a redraw facility or allows you to make additional repayments.
No matter what you’re looking to do, it’s important to make sure that your home loan meets your changing needs.
Want to know more?
Contact your local Perth mortgage broker for a free home loan health check today on 9277 9888, or click on the ‘Contact Us’ button at the top of this page.
