In a nutshell, refinancing means moving your home loan from one lender to another.
Because you’re not buying a new home, the process doesn’t involve another vendor or settlement agent, although you do still need to get the property valued.
4 Reasons why you may want to refinance
- For a lower interest rate. This can save you money to spend on other things, or if you use some of that saved money to continue making larger repayments, you might pay your mortgage off faster and save on total interest paid.
- To have more flexible features such as being able to pay extra into your mortgage but redraw it again should you need it.
- You want a fixed rate home loan. This fixes the rate for a chosen period of time (such as 1, 2 or 3 years) so you know exactly what your mortgage costs are going to be over that period of time.
- To consolidate your debts, or to use the equity in your home to renovate or invest.
The easiest way to find out what your options are is to contact your local mortgage lender. They’ll be able to find the best home loan for your needs and take you through the process to make it a lot easier and less confusing.
Here are more mortgage tips and articles that are worth a squiz.
What is a mortgage offset account?
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