You’ve been watching home loan interests rates for a while now, and you think it might be time to consider a home loan refinance. This is a smart move, if you’re in a position to refinance that is.
By refinancing, you’ll be switching your home loan to another one. You’re essentially paying off one loan and starting a new one with a new lender (or maybe it’s with your current lender)…
Why You Might Consider a Home Loan Refinance
Generally, most people are looking to refinance their existing home loan because they want to reduce the costs of their current mortgage, or something has changed in their lifestyle and they need a home loan that better reflects those changes.
There are many reasons why you might consider refinancing your home loan, and these could include:
- You’re looking for a better interest rate for cheaper repyaments. You should always chat to your ACF Mortgage Broker first, especially if your current lender is unlikely to come to the party, to shop around and see what options are available to you. Don’t forget to make sure you’re fully aware of discharge or exit fees associated with switching your home loan, as these can sometimes make the move not worth it.
- You’re looking to invest in more property. Refinancing allows you to access the equity you have in your current home to then use it to purchase another property. If you choose to access your equity, just remember that it could take longer to pay off your mortgage.
- You’re looking to renovate your home. Again, you’d be accessing the equity you’ve built up in your home to renovate it. This is a great idea and should lead to an increase in property value, something your current lender will love.
- You’re looking for different home loan features. Perhaps you’re now in a position to make additional repayments to reduce the interest you’re paying on the principal amount, or you’d like an offset account or a way to redraw some of the extra repayments you’ve made. A home loan refinance can offer this to you, if you find the right lender.