Refinance Home Loan Melbourne
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Refinancing may seem like a big task, but it’s actually not that difficult. Many people don’t want to change their finances, but the fact is that refinancing doesn’t require much effort and can save you a lot of money given the right situation. We’re here to help explain what refinancing is and why it’s worth your time. If this is something that you’re interested in learning more about, read on as we discuss what you need to know when considering refinancing your home loan.
What does it mean to refinance a home loan?
Refinancing your home loan is the process of moving your home loan to a different lender or product, most often to save money. Typical reasons for this move include lower interest rates.
When should you decide to refinance your home loan?
Refinancing is completely dependent on your personal situation. If you lose your job or your income unexpectedly changes, you may need to lower your repayments. Or, if you have a long time until you have to pay off the debt, you may want to decrease the length of your loan. Perhaps you are unhappy with your current lender and want to switch to someone new. Or maybe you want to access the equity in your home and spend the money elsewhere. You could use it for renovations, a vacation, a new car, or any number of other things.
Refinancing your home loan will also help you consolidate debt if you’re struggling financially. Consolidating all your debts into your mortgage into one payment can be an effective budgeting strategy and can minimise your repayments if structured correctly. The interest rate market is highly competitive, and we’re currently offering an introductory variable rate of 1.99% per annum for one year, the first of its kind in Australia. We’re also the first to offer a variable rate loan with a 1% margin. If you feel that your current interest rate isn’t competitive, it may be a great time for you to refinance.
What Do You Need to Consider When Refinancing?
Refinancing your home loan will save you money. But be careful of the costs. There are a number of fees that come with refinancing, including an application fee and a discharge fee. Additionally, if you don’t have enough equity in your home, you may have to pay Lenders Mortgage Insurance (LMI). Make sure to get an idea of the cost in advance to make sure it’s worth it for your specific financial situation.
Is it still worth it to refinance your home loan?
Yes, it is worth refinancing your home loan if you can lower your interest rate enough to save money in the long term. Depending on your current loan, dropping your rate by 0.25 – 1% could be enough to make refinancing worth it, and save thousands of dollars each year over the term of the loan.
You should be able to properly gauge whether refinancing is the best option for you. Be sure to keep everything you’ve learned here in mind so that you can make the most informed decision regarding your home loan.
If you’re looking for refinancing your home loan in Melbourne, then you’ve come to the right place. We will be happy to give you a free, no-obligation quote for your new mortgage requirements, offering you the best value loans from a range of lenders. This means that when we deliver a solution for you, you know that it is the best possible deal available on the market. This will save you time and ensure that all the legwork is done prior to proceeding with this big decision.