Refinancing a Home Loan

By paying down your mortgage over time, you're building equity in your home. Accruing value on your property allows you to borrow against that built equity when you need to fund other large expenses, like starting a business, buying a cottage, debt consolidation, or investing in home renovations and repairs.

To take advantage of that built-up home equity, you may be considering mortgage refinancing or a home equity loan to fund these new expenses. 

With the competition between banks and non-bank lenders becoming increasingly apparent, it is a good time for a Home Loan Health Check.
Refinancing your home loan may mean you can benefit from a lower rate and more flexibility. This may assist you in saving money and pay off your loan sooner.

Why Refinance?

Lower Rate
Lenders are always bringing out special rate offers for new-to-bank clients however they often neglect to let existing customers know about them. Therefore, you could be paying too much on your existing loan. Depending on current economic circumstances, it may make sense to consider switching from a variable interest rate to a fixed interest rate, or vice versa.

Flexibility & Features
Your financial position may have changed since you first applied for your loan, and you may find that now you qualify for a product with more flexibility or popular features such as offset accounts, redraw facilities and the ability to make extra repayments. Additionally, the loan market is constantly evolving and highly competitive, and therefore loan features that were not available to you when you first applied, may now be available.

Consolidate Loans
As you flow through life you may find that various debts such as credit cards, personal loans and car loans have crept in to your financial situation. By consolidating these loans, you could streamline repayments into a more manageable solution that helps you save on interest charges and fees and frees up your cash flow.

Utilise Equity
The equity in your home is equal to the property value minus the amount owing on your mortgage principal. The more equity you have, the lower the lender's risk, which usually enables you to access a lower rate. Alternatively, you may choose to use that equity to invest in property or shares, or perhaps renovate your home. The more equity you have, the more choices you have.

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