With interest rates dropping to unheard of levels, now is the perfect time to consider a home loan refinance, by reducing your repayments or consolidating those high interest rate debts, leaving you with extra money in your pocket each month. You could also take advantage of those lower repayments to pay extra on your mortgage and reduce the term of your loan, bringing you ever closer to being mortgage free.
With a wide range of lenders and loans to choose from, there is every chance you may be able to secure a better deal with another lender.
Benefits of a home loan refinance
If you think you’re paying too much, contact your mortgage broker, who can work through hundreds of different loan products and help you obtain a lower rate and lower fees and who will also be able to illustrate the benefits of refinancing your current home loan, the following are just some of the reasons why a refinance now could benefit you now and into the future.
Consolidating Debt
Moving those high interest debts like a credit cards, personal loans and store cards into one low rate loan via your mortgage. It means you have just one set of paperwork to manage, one loan to pay and it can also offer big savings by reducing your monthly payments in total.
Switch to a fixed rate
With home loan interest rates at historical lows, now my be the time to lock in a fixed rate, if you’d prefer the certainty that your repayments will stay the same for a period of time, switching to a fixed rate could save you thousand were interest rates to rise.
Looking for specific features
When you first took out your mortgage some features may not have been available or came at a cost, such as a simple redraw facility, many basic home loans don’t offer redraw or allow an offset account to be established. Refinancing to obtain these features could save many and possibly reduce your loan term.
Renovating to add value
One of the most common reasons for a home loan refinance is to access the equity that has built up over time for renovations or additions to property, this can make it possible to upgrade your home and add value if you decide to sell.
Getting a better deal
The most popular reason mortgage holders choose a home loan refinance is to obtain a lower interest rate and reduce their monthly repayments. With interest rates at historical lows and lenders fighting for you home loan business, there has never been a better time to review your home loan to see if there is a better rate available.
