Should I consider a refinance home loan?
When set up correctly, a refinance home loan is an opportunity to save a heap of money.
With the refinance home loan becoming more and more popular, there is now a considerable amount of market share within the mortgage market. Fortunately for consumers, this creates a competitive market with outlets to save money.
With our expertise and know-how in the field, 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.
As such, a periodic assessment is a fantastic way to monitor if your lender is taking advantage of you through outdated fees and charges in comparison to current offerings, as well as providing you with information and updates on any changes or new options in the market.
Most people consider a refinance home loan because they want a lower rate. Why would anyone want to pay more than they need to? Even the smallest of increases or decreases can mean a massive difference in the ongoing total amount you pay. It can be frustrating when your lender increases rates above what the Reserve Bank set.
A refinance home loan may also be effective when you have multiple debts and many repayments; for simplicity and to cut costs, consolidating is an option. You may have debts streaming from multiple sources (such as credit cards, personal loans and 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 of why more do not refinance.
When a refinance home loan does not make sense
Due to the cost of refinancing your loan you need to be able to save enough money to justify the immediate cost.
You need to ensure that you are going to save money not just get a lower rate, sometimes a lower rate can look attractive but end up costing you more depending on the features of the loan, it’s always important to check with your Money Lab broker to make sure you will save money on your refinance based off your specific circumstances.
Our talented home loan experts are highly trained and understand the market well. They can advise you on how to refinance a home loan, and whether it is the best solution for you. Through our guidance every step of the way, we will ensure you receive the expert advice to get the best possible result.