There will be times when you may consider the benefits of refinancing your existing loan for various reasons. You may be thinking of the following decisions:
- Buying another property
- Consolidating debts
- Checking to see if there’s a better interest rate
- Moving from a variable to fixed loan or vice versa
- Lowering your mortgage repayments.
- Going from non-conforming home loans or low documentation loan
- Renovating your existing property
- Releasing equity to buy your new property or car
Refinancing is an important decision and while it may look like you can get a cheaper interest rate there could be extra fees and restrictions which could end up costing you more over the life of the loan. Refinancing is an area where Future Finance Group can offer expert advice and assistance to help you determine if it is most financially feasible decision for you.
If your loan doesn’t suit your lifestyle or personal situation you could be wasting thousands of dollars a year on extra interest and fees.
You may be able to refinance and find a loan that’s more appropriate for your needs, with more suitable features and a competitive interest rate to match. There are now more alternatives to mainstream bank products available that may better suit your needs and personal situation.
If you feel that your loan is no longer right for you, speak with your mortgage broker. Here are some key reasons to prompt a review of your mortgage:
Pay off your mortgage faster
If you’re striving to be mortgage free, there’s a good chance there may be a more appropriate product to meet your needs. Some mortgage products are designed to motivate borrowers to repay their mortgages quickly, so now is the perfect time to talk to your mortgage broker. A new loan could set you on the road to financial freedom – fast!
Better interest rates & lower repayments
Rates and mortgage deals are constantly on the move. To make the most of a competitive mortgage market, you might want to evaluate the loan product you currently have. For example, you may want to go for a lower variable-rate, or lock into a fixed-rate. Break costs can be expensive though, so you’ll need to check that you’ll come out ahead when all costs are considered.
Consolidate your debt
Consolidating your debts, such as credit cards or personal loans, into your home loan can save you thousands of dollars in interest charges. Rolling your debts into one monthly or fortnightly repayment can also help make juggling your finances a little easier, while improving your cash flow.
Avoid monthly fees & charges
Some lenders charge a monthly service fee – further adding to your debt. Competition between lenders has increased and some now waive administration fees, so refinancing your home loan with another provider can be a smart move to help cut your mortgage costs. You should check with your lender to see if there are applicable break costs, before switching loans.
As you pay off your mortgage you’ll accumulate equity in your home. As long as you are capable of meeting your loan repayments, refinancing your mortgage can help you tap into the value that you’ve built up, using it for other purposes such as purchasing an investment property.
Contact us below for assistance now.