If you’re unhappy with your current home loan and feel it no longer suits your situation, it’s smart to consider refinancing your mortgage.
The days of remaining loyal to one bank for your lifetime are over. In the current competitive climate, it pays to shop around. Switching your mortgage either to a new lender, or refinancing your home loan with your current lender, can have many benefits.
- Get a better rate. The mortgage market is a competitive space, and it’s very likely that the mortgage deal you got two or three years ago isn’t going to be the best deal you can get today. Consider and compare your options, or better still, have a financial broker at IGM Group evaluate your situation and find you a cheaper rate home loan. It could save you both interest and time off your loan.
- Many homeowners refinance to fund a renovation. A construction loan or equity loan can be the best way to add value to your property.
- Payout the loan faster. That fixed rate home loan you took out years ago may not allow you to adjust your repayments. If you’ve got a new job or a pay rise, you may want to refinance and pay down your loan.
- Consolidate debt. Credit card and personal loans have a much higher interest rate than home loans. Consolidating your debts can reduce your interest and save you money.
- Buy another property. Once you have enough equity in your residential property you can access that equity to purchase another property. It’s possible to buy multiple investment properties using your residential home as security. Refinancing can get you a lower interest rate and fewer fees if you’re looking to access equity.