What is refinancing?
Refinancing is the process by which you assess your current loan and change lenders or sometimes only the loan product (with same lender). You refinance only if you are going to have a benefit (save interest, debt consolidation, etc) from the process.
How does refinancing work?
You contact us to have a chat. We will analyse your current situation, understand your future needs and suggest an appropriate solution. You can sometimes opt for a different loan with the same lender and save some money. Generally, people move to a different lender for various reasons like low interest rate, better service, etc.
How much money can I borrow?
The amount of money you can borrow depends on factors like your income, other debts, living expense and also the equity in your property. This varies between lenders by a few thousand dollars. Hence talk to us to understand who could be the best option for you.
Can I consolidate my credit card and other debts with my home loan?
This is one of the main reasons why you may want to refinance. The advantage is that the interest rate on the mortgage is much lower than on other debts (credit cards, personal loans, car loans, etc.). If you have sufficient equity in your property, then you may be able to consolidate your debts and pay a lower interest rate. However, you do need to make sure that you keep up the current repayments after consolidation. Otherwise, you may end up paying more over a longer duration.
Will I save money by changing my bank?
With lenders reviewing the interest rates outside of the reserve bank, it is always a good time to check what other options are available. Whether you save any money will depend on what your current interest rate is, the type of home loan you currently have and the kind of home loan you want to select.