Should I consider a Refinance Home Loan?
Taking on a Refinance Home Loan is a hard decision and one not to be taken lightly, so be sure to talk to your home loan experts as, if set up correctly, there is an opportunity to save a heap of money.
With the Refinance Home Loan becoming more and more popular, there is now a considerate amount of market share within the mortgage market. Which fortunately for consumers, creates a competitive market with opportunities to save money. With our expertise in the field and know-how, our home loan experts will help you take advantage of this market opportunity.
When a refinance home loan makes sense
As a rule of thumb, you should reassess your current mortgage every three years and compare it to current market offers.
In doing so, a periodic assessment is a fantastic way to monitor if your lender is taking advantage of you through outdated fees and charges in comparison to others, as well as providing you with information and updates on any changes or new offers in the market.
Most people consider a refinance home loan because they want a lower rate. Why would anyone pay more than they need to? It is common sense, right? Even the smallest of increases or decreases can mean a massive difference long term in the total amount you will pay. It may be frustrating when your lender increases rates above what the Reserve Bank set.
A refinance home loan is also sensible when you may have multiple debts and many repayments and for simplicity and to cut costs consolidating is an option. You may have debts streaming from multiple sources (such as credit cards, personal loans, home loans) and it is becoming increasingly difficult paying all of them off. Credit card rates may be as high as 20%, which in comparison to a home loan rate begs the question why more do not refinance.
When a refinance home loan, does not make sense
If you are simply just looking for a slightly lower rate, then maybe a refinance home loan is not the right call.
If over many years, you have built a strong relationship with your lender, chasing a smaller rate can lead to greater costs in the future. You may not be treated as well regarding receiving the customer service and financial advice you need. You get what you pay for, so a lower rate will have much less supervision and support from your chosen financial adviser. Also always be sure to check that there are no hidden nasties in the fine print, we always advise to check it over with your home loan expert first and foremost.
The remaining life of your home loan is another aspect you should take into account. If you are nearing the end of your loan, or more than half way through it may actually be more expensive to shift to a new lender through a refinance home loan as you will be paying your loan for longer, thus incurring more costs. Be sure to do the math, plan out and compare both scenarios – if your rate is still competitive you might just find staying right where you are, is the smarter move.
Our talented home loan experts are highly trained and understand the market well. They can advise a refinancing home loan, is the best solution for you. Through our guidance, every step of the way, we will ensure you get the best advice giving you the best possible result.