Is your current loan feeling a little tight? Are you looking for a way to free up some extra cash? Refinancing might be just the thing you need.
When you refinan ce, you essentially replace your current loan with a new one. This has a few different bonuses. One, you can release equity from your home to use for other purposes – like braces for the kids, home improvements or a new car. Two, you can access different loan features that better suit any lifestyle changes you might have made. And three, depending on the new loan terms, you may be able to shorten the time it takes to pay off the loan, and reduce your monthly repayments.
So if you’re feeling like your current loan could do with a refresh, give refinancing a try. It could be exactly what you need.
If you have had a home loan for a few years now, it’s safe to assume your life has changed some way 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.
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.
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.
Our team will help you search, choose and settle your loan. Chat to one of our loan specialists at a time that suits you.
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