Getting a better deal on your loan.

It never ceases to amaze us how many people don’t know what rate they have on their home loan. That being said, it’s quite understandable – once you successfully settle your home loan, the repayments become a ‘set-and-forget’ process, as you are generally able to afford them.

However, many borrowers are potentially costing themselves thousands of dollars a year by not refinancing their loan. Why? Because every borrowers situation changes over time.

With Interest rates are currently sitting at historic lows, so, if your interest rate doesn’t have a 2 in front of it, you may be paying too much.

If you are unsure if you should refinance, we have listed a few reasons why people refinance below.

Your life has changed

If you have had a home loan for a few years now, it’s safe to assume your life has changed in that time. You may have started a new job, received a promotion, or gone through significant life changes such as getting married or had your first child.

You might even be near the end of a fixed rate term or interest only period so now is a great time to find out what your options are.

Refinancing will allow you to ensure your home loan is still in line with your needs and goals.

You want to pay off your loan faster

Your financial situations tend to change over time, and as such you might be able to contribute more towards your home loan and get out of debt sooner.

You may also be able to structure your loan and get more out of it by accessing features such as a redraw facility or an offset account. By paying your salary into an offset account, you reduce the interest you pay on your mortgage each month. A redraw facility allows you to access any additional repayments you’ve made on your loan.

Alternatively, you could also switch to a simpler home loan with less features if you no longer require your current features.

To access equity and purchase investments

If you purchased in an area that has experienced home value growth while you’ve been paying down your mortgage, you may have a substantial amount of equity in your home.

Equity is calculated by subtracting the remainder of your mortgage from the market value of your home, usually done through a home evaluation.

You could also draw down on your equity to help fund a renovation or upgrade your home. And, if you want to, you could use your equity to help purchase an investment property.

Speak to a broker

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Our team will help you find the loan that’s the right fit for you. Chat to one of our loan specialists at a time that suits you.

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