There are many reasons to refinance:
When should you refinance?
Refinance at the right time and you can save a large sum but that’s not always the case. You need to look at your personal situation and investigate the options.
If you’re staying up to date with the current market you will notice that the interest rate is the lowest it has ever been. This is the perfect time to shop around and get the best interest rate available but chasing the lowest interest rate isn’t the only thing you need to consider. You need to think about the entire life of the loan, not just the interest rate. Also think about the costs of changing to another lender.
It could be your life situation that changes which could have you thinking twice about your existing loan and whether it is still right for you. Perhaps you’ve thought about making an important life decision such as: choosing to invest in a property, renovating your existing home or deciding to start a family. Or maybe life has taken a sudden turn and you will need to have that little bit of extra breathing room. No matter the case, it makes sense to have a loan that is flexible to account for life’s expected and unexpected changes.
When not to change
As many reasons as there are to refinance, there are just as many reasons not to and it’s important to know about these before you commit to a decision. For example, if you don’t plan on owning your property for much longer, the high exit penalties and additional set up fees may not be favourable in the short term. Not having enough equity is also a good reason to consider sticking with your existing loan.
It’s time to change, now what?
Why not use one of our handy calculators to compare home loans or work out how much repayments may be.
Whether you’ve made the decision to refinance or still sitting on the fence, it’s worth speaking to one of our friendly staff. We can look at your options and do a home loan health check for you.
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