Refinance Home Loan

Considering refinancing your home loan?

When a refinance home loan makes sense

As a rule of thumb, you should reassess your current mortgage every three years and compare it to current market offers. As such, a periodic assessment is a fantastic way to monitor if your lender is taking advantage of you through outdated fees and charges in comparison to current offerings, as well as providing you with information and updates on any changes or new options in the market.

Is it good to refinance a home loan?

Refinancing your home loan is an opportunity to reduce your mortgage repayments, if it’s done properly. In short, refinancing your loan can be good.

More homeowners are now opting to refinance their loans, meaning mortgage refinancing holds a considerable share of the market. This is good news for consumers because it creates a more competitive market, with better refinancing offers available.

Our home loan experts can take advantage of this opportunity, and find the best deal for you.

Key Benefits

When should you refinance your home loan?

As a rule of thumb, you should reassess your current mortgage every three years and compare it to other offers that are available.

Periodically assessing your loan is a great way to see whether your lender is taking advantage through high fees and charges. An expert assessment can also inform you of updates and new options within the market. If there are better options out there, it may be the perfect time to refinance your home loan.

Most people consider home loan refinance for a lower rate. Why pay more when there’s no need? Even a small decrease in repayments can make a massive difference. It’s also frustrating when your lender increases rates above what the Reserve Bank set.

Home loan refinance can be effective when you have multiple debts and many repayments. Consolidating your debts can cut costs and make the repayment process more simple for additional debts like car loans, personal loans, or home loans. For example, credit card rates may be as high as 20%, which in comparison to a home loan rate, begs the question of why more do not refinance.

When refinancing your home loan does not make sense

Refinancing a home loan comes with costs and fees. Therefore, you need to be able to justify the cost of refinancing your mortgage and have enough money in the bank.

It’s important to carefully assess the pros and cons of refinancing. Sometimes, a lower home loan rate might look better, but it could end up costing you more, depending on the features of the loan. This is where our expert team of home loan specialists can help. We understand the market and we know what to look for when refinancing. 

We’ll take the time to find the perfect loan for you, and we’ll be with you every step of the way, ensuring you get the expert advice you need. 

Get in touch with us today.

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Frequently Asked Questions

Refinancing your existing mortgage basically means trading it for another one, Ideally, your new mortgage will have lower fees and a better interest rate. Finding and applying for a refinanced loan requires expert advice and plenty of research. Once you’ve found a better option and completed the correct application forms, you’ll begin making your repayments to your new lender. And ideally, these home loan rates will be lower.

Yes, it is possible to refinance your mortgage with the same bank. This can make the process more simple, with less paperwork and one point of contact. However, much of the time, homeowners opt to refinance with a different lender, because they may offer a better deal. 

Your current lender may be ‘banking’ on you choosing to forego the time and effort it takes to refinance, so do be wary of that. The bottom line is that you should always do your due diligence, and see what other lenders are offering.

Technically, you can refinance your home loan whenever you want. But from a financial perspective, a refinance home loan doesn’t make much sense before you hit the 12-month mark on your current mortgage. That’s because there are some costs associated with refinancing. After one to two years, it makes financial sense to seriously consider refinancing a mortgage.

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Mark Blackwood

Mark Blackwood

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Brett Hunter

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