Mortgage Refinancing Surges As Interest Rates Dive.
Are You Missing Out By Not Refinancing? JASON NAIRN, our finance and lending specialist explains the process of refinancing and explains how refinancing can help save you on your home loan.
0432 918 214
jason@linkedfinancial.com.au
First up, WHAT IS REFINANCING? Refinancing is when you change your existing home loan to a new one. Sometimes this can be simply a new product offering with your current lender or switching to a new lender all together. Refinancing gives you the option to explore securing a better interest rate and the possibility of withdrawing on your home equity.
6 Reasons to Refinance Your Home Loan in 2021 Life’s always changing. Since you bought your home, your family structure, lifestyle or financial situation may be different. There might be another home loan that’s more suited to your life now – and offers you a better deal.
The two main reasons people look to refinance their home loans are either to get a better rate or to increase their existing loan to withdraw some home equity. You can refinance your home loan from any bank or lender you choose, and it doesn’t necessarily need to be your existing lender. These days banks do not reward loyalty, and in most cases we find lenders offer better deals to new customers rather than rewarding their existing ones. Aside from this, what are some reasons for refinancing? It is going to come down to your personal situation, your short to medium term goals, and while people have a wide range of reasons here are the most common ones we see. 40
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You Want a Lower Interest Rate Refinancing for a lower interest rate could not only save you money - it could also help you pay off your home loan sooner. It means your repayments might be lower every month, which means more money in your pocket. Or, if you use some of that saved money to continue making larger repayments, you might pay your mortgage off faster and save on total interest paid. You hear a lot about interest rates and the RBA in the news, but every lender uses many different measures to set their rates. That’s why it’s important to speak to a mortgage broker to understand what rates you can access.
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You're Renovating If you’re in Queensland particularly, you may have heard that the coronavirus pandemic hasn’t impacted house prices as originally feared. In fact, many Queensland housing prices have increased. If your property is one of the lucky ones to see an increase you may have more equity in your loan to borrow against. This could give you the opportunity to borrow some extra funds to do those renovations you’ve always wanted. Lenders also like to give better interest rates to homes with increased equity.
