If you have a mortgage chances are at some point you’ve thought about refinancing your loan to get a lower interest rate, better features or free up the equity because your life has changed. Here are 5 reasons to refinance.
Get a better deal
Your mortgage has probably been set and forget for a few years. While it might have been a suitable option for you when you got it, it might not be the right option for you now. Interest rates fluctuate, features in loans change and our life changes. Your income may have increased, property values in your area might have changed or you might need features in your home loan you didn’t need before.
A home loan is one of the biggest investments you will make in your life, you want to make sure you have the right mortgage for your needs. Read about how much you could save by refinancing here or click here to chat with a broker to discuss options from various lenders to refinance and get a suitable loan for you.
Debt consolidation is where you take your debt such as multiple credit cards, personal loans or other debt and combine them to reduce the amount of loans and streams of debt you have. Struggling with debt is not the only reason people choose to refinance and consolidate their debt into their mortgage. Combining your debt gives you more leverage to get a better deal with a loan provider, it can also improve make your finances easier to manage by having one or two payments instead of 10 you need to balance. Click here to read about debt consolidation.
Did you buy your home with the intention of renovating later? Maybe you’ve had a child or two and want to update your home to make it your dream home. Instead of getting a personal loan, you could refinance your current home loan to free up equity to make the changes you want to your home. Click here to read about refinancing for renovations.
Freeing up cash flow
If you have been paying your mortgage for a few years, chances are property values have increased along with your mortgage reducing which gives you equity in your home. A common reason to refinance is easing cash flow. It’s generally a combination of getting a better deal and interest rate to lower your repayments along with sometimes taking some of the equity to invest elsewhere or do something you’ve always wanted to do. Click here to learn more about refinancing to free up your cash flow.
How much has your life changed since you got your mortgage? Life milestones such as getting married, having a baby, changing jobs, a couple going from one income to two or from two incomes to one, promotions and the desire to invest in property are all large milestones which can prompt a refinance. Read more about refinancing for life changes here.
It’s your money, your mortgage and your life, make it work for you. Click here to chat to a broker to discuss your options and see if refinancing is right for you.
This article is not to be taken as financial advice. Every applicant’s personal situation will vary. We recommend seeking professional advice for your circumstances. All loans are subject to the normal lending criteria.