Refinance home loans
It’s a good idea to review your home loan every 1-2 years to make sure it still meets your needs. If it’s been a while since you’ve thought about your mortgage, now could be the perfect time for a review, especially with interest rates at an all-time low, you could be paying more in interest than you need to.
Why refinance your mortgage?
Refinancing is a great way to change your home loan to a product that is more suited to your current situation. By refinancing your home loan you can take advantage of better rates and/or lower fees, saving your thousands in the long run.
You can refinance your home loan for structural renovations where you borrow based on the value of your property once renovations are completed.
Traditionally only available with variable rate home loans, some fixed rate loans now offer this feature. Extra repayments allow you to pay additional sums on top of your regular repayments to bring down the principal and in so doing, pay less interest.
A debt consolidation refinance works in a similar way to a cash-out refinance, where an increased portion of the loan can be used to pay out other loans and debts.
Lenders are offering competitive interest rates on a wide range of home loans. Get a better rate on your mortgage and save on the repayments.
Perhaps you’d like access to extra features like an offset account, extra repayments and redraw facilities.
Things to consider when refinancing your home loan
If you have less than 20% equity in your home you will have to pay lenders mortgage insurance (LMI) to take out a new home loan. This doesn’t mean you shouldn’t refinance however, as you could still save in the long run depending on your loan terms.
You should always factor in the costs of refinancing. There may be fees to discharge your current loan and set-up the new loan, as well as government mortgage registration fees.
How much can you borrow?
Use our borrowing calculator for an estimate of your borrowing capacity or contact one of our lending specialists to discuss your situation.