For many of us, a Home Loan is one of the biggest financial commitments we make in our lives. However, for such a big commitment it’s something we tend to ‘set and forget’. Through different life and financial stages it’s important to assess if our current Home Loan is still working for us, and consider the option of refinancing.
Want to know more? Check out 5 common reasons people consider refinancing below.
Don’t we all! If interest rates have changed since you got your original home loan, you may be able to refinance to a new loan with a lower rate, therefore reducing your existing loan repayments. By refinancing your loan you can also reduce the amount of interest you pay.
Use our home loan calculator to see what your home loan repayments could be.
HOME LOAN CALCULATORS
2. Your property has increased in value
If your property’s value has gone up, you might be able to refinance your home loan and get a better rate. These days, banks give better interest rates to borrowers with more equity.
If the time has come to renovate, refinancing to renovate means you may be able to switch to a new home loan and borrow extra to cover the cost of your renovation.
4. You want to consolidate
Having your loans and bank accounts with the same financial institution can not only make it easier to manage your finances, it could help pay things off sooner, too. Some financial institutions offer fee waivers and discounts if you have all of your finances with them.
5. Your fixed rate period is expiring
In Australia, it’s common to have a fixed rate Home Loan term with a term between 1 to 5 years. At the end of your Loan term, your fixed rate expires and will change back to a variable rate. To avoid this, you can move to another fixed rate, or refinance!
If you think refinancing could be right for you, be sure to check what fees could be associated if you move to another Financial Institution so there are no surprises.
Want to refinance your Home Loan to People’s Choice? Check out our current refinance offer, or chat to us today!
Terms, conditions, fees, charges, lending criteria apply and are available upon application.