Refinancing your mortgage is a great option if you’re looking to reduce your mortgage repayments or reduce your mortgage interest rates over the long term. You could end up shaving years off the life of your mortgage with a few simple strategies.
At Australian Credit and Finance, we specialise in helping Australian’s find the best deal for their home loan, whether that’s to access equity in their home or reduce the interest rate they are currently paying.
What Does Refinancing Involve?
Many mortgages are reviewed 3 years too late and this is mainly because home owners think it’s too hard to move from their current lender, or they simply don’t have the time to do a review.
At Australian Credit and Finance, we encourage our clients to do a mortgage health check every 12 months. We help you through this process and can provide you with recommendations, based on your current needs, as these may have changed since you first took out your mortgage.
When it comes to refinancing, there are a few things involved with this process, such as:
- Reviewing your current mortgage interest rates
- Reviewing your current mortgage repayments
- Reviewing your home’s current market value
- Reviewing your financial situation
While all of this might seem daunting, by letting our team of Home Loan Experts complete a mortgage health check, this process is quite painless from your perspective, as we do all the reviewing for you.
How to Shave Years off Your Mortgage
There are a lot of different strategies you can apply to your home loan that will help to reduce the length of your mortgage. These strategies could include:
- Making extra payments each month to reduce interest and pay off your mortgage quicker
- Paying your mortgage weekly rather than monthly to get in a few extra payments in a year (paying monthly is a set amount, paying weekly means that for those months that have 5 weeks, you’re paying extra)
- Using an offset account to reduce the interest on your mortgage
- Refinancing your current home loan to access lower variable interest rates
These are just some of the strategies we advise home owners to utilise to reduce the length of their mortgage.
Things to Consider When Refinancing
Before you take steps to refinance, there are some things you should consider first.
- Are you happy with the level of service from your current lender?
- What type of loan do you think you need?
- What home loan features are important to you?
- Have your circumstances changed since you first took out your home loan?
- What are you hoping to achieve by refinancing your current home loan?
Refinancing is a great way to access extra funds, consolidate ‘bad’ debt or reduce the life of your mortgage. But you need to make sure that you move to the right home loan and choose the right lender.