If you aren’t happy with your home loan or are having difficulty servicing it, you might be interested in refinancing. This can mean switching products, consolidating debts or even changing your lender entirely.
Even if you’re comfortable with your current mortgage it’s advisable to also assess it regularly, particularly if you’ve experienced any major lifestyle changes recently – such as a new job or you’ve recently shifted to a one-income household.
Here are some issues worth considering as you re-evaluate the opportunity offered through home refinancing with your mortgage broker:
POTENTIAL REFINANCING BENEFITS
- Better affordability: A more competitive interest rate could reduce your monthly repayments.
- Lifestyle improvement: Your broker might be able to find features that would compliment your lifestyle – such as an offset account or a holiday period.
- Simplicity: Consolidating all of your debts could make repayments more manageable and as well as cut down repayments on higher interest debt – such as on credit cards.
- Pay off your loan faster: Changing your repayment options may enable you to pay your mortgage off earlier, potentially saving you thousands of dollars in interest repayments.
- Flexibility: Your current lender may be slamming you with fees should you step outside your loan’s parameters. A new mortgage may give you better flexibility without the excessive costs.
POTENTIAL REFINANCING PITFALLS
- Refinancing can incur costs so it’s important to make sure that you end up better off should you switch mortgages. It may be worthwhile talking to your existing lender to see if they can assist you achieve your objectives before you incur costs switching to a new lender.
- If you decide to refinance you may be hit with exit, entry or early termination fees. As always you mortgage adviser can help you determine whether refinancing is an option you should consider.
Please call the office in Brisbane for more information or clarification about your own particular circumstances on (07) 3378 2056.