If you're a homeowner with a mortgage, for sure you came across the term 'refinancing'.
Refinancing allows you to merge your debts and pay your mortgage quickly. It includes reviewing your current mortgage and swapping your loan to another lender that can better meet your needs and wants depending on your circumstance.
You should consider refinancing if you want to access your equity in the property without having to sell it, like making home renovations or buying an investment property. You may also consider refinancing if another provider has a more competitive offer than your current provider.
Refinancing allows you to also potentially access equity - the amount you'd get from selling your home after settling the loan, such as a mortgage on the property and other costs associated with the property.
There are tons of factors you need to consider when thinking of refinancing your loan. We can help you to assess your needs and goals and your financial situation towards finding a suitable, and customized solution.
How will you know if refinancing is the right option for you?
It's best to speak with us about your specific needs so we can assist to determine whether you can afford a modified loan structure or change your mortgage, especially if you have more than one property.
Are you looking to pay less interest?
Some are skilled researchers and want to take advantage of lower interest rates other lenders to reduce repayments. This can potentially save you a lot of money in the long term and is worth reviewing on a regular basis.
Saving money is one of the biggest benefits of refinancing. However, it can be complex and careful consideration is required to make sure that the benefits are not just short term, but long term gains also.
We always review all loan options and figure out whether it's the right decision for you to refinance. If it's going to save you higher than $1,000 a year, then refinancing might be the best strategy. Sometimes clients can save as much as $5000 or $6000 per year!
Is it ideal to change your loan type?
It is essential to factor in some charges in refinancing, including to pay Lender's Mortgage Insurance (LMI) to your new lender and incur exit fees on your existing home loan.
If you're thinking of refinancing, working with us gives you more negotiation power given we have over 30 lenders on panel to use in our negotiations rather than negotiating directly with one bank. We have access to loan options from a range of different lenders that you can consider, the options seem endless!
Have your circumstances changed?
If you encounter major life changes recently, such as a change in marital status or loss of income, you might be looking to refinance.
In this instance, we can help you look for other options to consolidate your personal loans and credit cards into one loan. With this, you can lower your monthly repayments and save you interest in the long-term.
Get Smart Financial can help you manage your finances. Book a time to discuss options on how we can help you save more!
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Rachael Bland – Founder & CEO