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It is helpful for borrowers to refinance their home loan now that interest rates are at their most economical. Though refinancing is not just about getting the lower rate – it is an approach that can help you manage your finances better.
Here are some of the remarkable opportunities that you can unlock when you go for mortgage refinancing.
If you are planning to invest in a property or renovate your home for passive income, refinancing your home loan is a practical option for you. Refinancing your mortgage can help you access the equity you built in your home over the years.
When you consider refinancing to release equity in your house, the lender will consider specific factors. The most significant element would be the value of your property – over the years, if your property’s market value appreciated, then you can expect to maximize this strategy.
Hence, it is essential to have a realistic view of how much your property is worth. You can research recent past sales in the area or consult with a local real estate agent to better understand.
Debt consolidation is another benefit that you can achieve with mortgage refinancing. It is an ideal option if you are experiencing challenges in managing your financial commitments and debts. With debt consolidation, you can combine all of your debts, so you have one large repayment instead of many.
However, when you consolidate your debt, your repayments are significantly higher. It implies you still need to work hard to pay off the loan as soon as possible.
You can also ask your lender about having your other debts split from your home loan. Then you will still have the same interest rate but will hold separate statements and repayments.
If you currently have a bad credit mortgage due to too much debt or a bad repayment history, you may have a higher interest rate than other prime mortgages in the market.
However, you can move to a prime loan if you prove to the lender that your situation has changed. Make sure you speak to your refinancing lender and discuss your eligibility for a standard loan. And, if you are not, then ask them what changes you need to qualify.
One rule of thumb is to regularly check the market for the most competitive offers on loan products as a borrower. Regardless of how long you have had your mortgage, it would help if you compared it with other loan options.
Most lending institutions regularly update their loan products to keep them competitive. Consequently, you may land a better selection with another lender.
After analysing your financial situation and loan market, reach out to your lender to negotiate as they may be able to offer you a better interest rate. Alternatively, you always have an option to consult other lenders.
Let’s connect over a no-obligation phone chat or meet in person to discuss your financial situation. Our home loan experts can help you at every step of the way.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”