Why refinancing?

With interest rates at an all-time high, now’s the perfect time to shop around, explore your options and secure a better interest rate!.

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Refinancing can be a strategic move for homeowners looking to improve their financial position, whether you're looking to lower your interest rate, shorten your loan term, or unlock equity in your property.

 

What is home loan refinancing?

Refinancing is the process of replacing your existing home loan with a new one, either with your current lender or a new lender. This allows you to adjust the terms of your mortgage, potentially securing a better interest rate or more suitable loan features.

 

What’s involved in the home loan refinancing process?

• Replacing your current loan: When you refinance, your new loan pays off your existing mortgage and you begin making payments under the new loan terms.
• Access to better features: Refinancing can give you access to additional loan features, such as offset accounts, redraw facilities or flexible repayment options.
• Costs to consider: There may be exit fees from your current loan and upfront costs with your new loan, such as application or valuation fees.
• Potential savings: By securing a lower interest rate or better loan conditions, refinancing can lead to significant savings on your overall mortgage repayments.

 

5 benefits of refinancing your mortgage 

Refinancing your home loan (or any type of loan) can offer several benefits, depending on your financial goals. Here’s 5 reasons to consider when planning to refinance:

1️. Securing a better interest rate – Even a small rate reduction can lead to significant savings over the life of your loan and can reduce your monthly payments. 

2️. Changing your loan structure – You may want to switch from a variable to a fixed rate, or vice versa, depending on your circumstances.

3️. Debt consolidation – Bringing all your debts into one loan simplifies your repayments and can lower your total interest burden as refinancing can help streamline your repayments and reduce interest costs.

4️. Taking advantage of new loan features – New options like offset accounts or redraw facilities could help you manage your loan more efficiently.

5️. Unlocking your home equity – Your home’s equity can be a great asset for renovations, investments, or other financial needs.

 

How a broker can help with refinancing your loan

• Offering expert advice – Refinancing can be complex but our brokers are here to  provide expert advice tailored to your financial goals. We can guide you whether switching to a fixed, variable, or split loan makes the most sense and help clarify the potential savings or risks involved.
• Access to a range of lenders – To start, we’ll work on negotiating a better interest rate for you directly with your current lender. If your lender isn’t willing to adjust your rate, we’ll compare hundreds of loan options from more than 35 banks, credit unions and financial institutions to find a better loan.
• Help you with the application process – Applying for a refinance can be time-consuming. We’ll handle all the paperwork, liaise with lenders, and ensure all necessary documents are submitted, making your refinancing process smooth and stress-free, saving you time and money. 
• Approval and review: Once your new loan is approved, we will help you review the loan documents and offer support throughout the settlement process.

 

Ready to refinance your loan?

If you’re considering refinancing, a home loan review can help you understand the potential benefits for your situation. Get in touch with our Mortgage Choice Melbourne brokers to discuss your options and secure a better deal.

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