Your home loan is one of your biggest financial commitments, so it’s smart to check in on it regularly. Refinancing is a great way to review your loan and make sure it still suits your needs. It can also come with some great benefits.

1. You Might Get a Lower Interest Rate

This is one of the main reasons people refinance. If you can get a lower interest rate, you could save thousands over the life of your loan—and have more money in your pocket now. With rates still fairly low, it’s a good time to see if you could save by switching.

2. You Can Switch Between Fixed and Variable Rates

Some people want the peace of mind of a fixed rate—knowing their repayments won’t change. Others want a variable rate, which can be lower but may go up over time. Refinancing lets you switch to whatever suits your situation best.

3. You Might Get Better Loan Features

There are home loans now with handy features that you might not have had before. For example, some let you make extra repayments without penalty, or open an offset account to help reduce interest.
Other useful features include:

• Repayment holidays (a short break from repayments)
  
• Loan portability (take your loan with you when you move)
  

4. You Can Combine Your Debts Into One

If you have other loans like a car loan or credit card debt, refinancing can help you roll them into one loan with a lower interest rate. This is called debt consolidation and it can reduce your total repayments and make things easier to manage.

5. You Could Access the Equity in Your Home

If your home has gone up in value, refinancing can help you unlock some of that value—called equity—without having to sell. You can use this money for things like:

• Renovating your home
  
• Investing in property
  
• Taking a big holiday
  

By reviewing your current loan, you can see how much equity you have—and refinancing could help you access it.

Mortgage brokers can help

We’ve gone through the potential benefits of refinancing, the costs associated and a short example. That’s alot to take in. When it comes time to make a decision about refinancing your home loan, the best suggestion is to sit down with a mortgage broker you trust, to help you go through your options.

A mortgage broker in Pakenham will be able to tell you what loan products are going to benefit you the most and the costs that might be associated with them, so you can make an informed decision.

Mortgage Choice offer a free Home Loan Health Check

I can compare your current loan with hundreds of others from our lenders to see if we can find you a better deal. It can be a great way to ‘health check’ your loan to make sure your loan still suits you. 

Book your free Home Loan Health Check with us on(03) 9118 0645or email [email protected]