Why Refinance a Home Loan
Despite our best laid plans, life is always changing. Since you bought your first home you may have gotten married, had kids, or started a new job. These changes may have severely disrupted your lifestyle and your finances, causing you to reconsider your existing home loan. It may be time to refinance your loan, where you move your existing loan from one lender to another to secure a better deal.
But why refinance a home loan? The benefits might include lower interest rates, reduced monthly payments, or the chance to consolidate debt. These extra finances can then be used to benefit your life in other ways, such as renovating your home, investing in a business, or buying a fighter jet (maybe not that last one). By refinancing your home loan every couple of years, you can ensure you always have the best loan to suit your everchanging financial situation.
If you’re ready to work with a home loan mortgage broker to secure the best home loan for you, call us on 07 3467 1582, send an email to hello@brokrloans.com.au or reach out through our contact form to have a friendly chat with our team.
Why refinance a home loan? Our top tips!
Lower your interest rate
We all want more money in our pockets, and securing a lower interest rate is an easier way to get more money than putting coins in the piggy bank. As your life changes, you may find that you are paying a higher interest rate than you can afford, which is putting a strain on your finances. By having a lower interest rate, you may even be able to save to make larger repayments, helping you pay off your home loan sooner and save on total interest paid.
Add or remove home loan features
If you’re researching why refinance a home loan, there’s a good chance your personal circumstances have changed since you agreed to your initial loan. Whether your offset account isn’t as useful as it once was or you want to make unlimited extra repayments, it’s important to alter your home loan to best suit your financial situation. Doing so means more money in your bank account and less stressing about being able to make your payments.
Consolidate debt
Are you struggling to juggle multiple debts alongside your home loan, such as personal loans, car loans, and student fees? You may have the option to consolidate these other debts into your home loan, allowing you to make only one monthly repayment rather than several. If you’re looking into why refinance a home loan because of the toll all your debts are having on your finances, consolidating your debt also typically allows you to lower your interest rate.
Pay less in fees
Home loan fees can be the difference between being able to afford that bougie breakfast or not, so it’s important that your home loan has fees that match your lifestyle. If your existing fees are becoming a burden, research your options to see if other lenders offer low fee or fee free options to help put money back into your pocket. Be careful though, as some lenders offer lower fees but make up for it by charging a higher interest rate.
Contact us today!
At Brokr, we are the finance brokers you can trust for expert advice, tailored solutions, and quality banter. If your research into why refinance a home loan has you wanting to make the switch, we’ll sit down with you and help you find the right choice for your situation. We also assist new home buyers with securing an initial home loan to fund the house of their dreams.
Get in touch through our contact form, send an email to hello@brokrloans.com.au, or call us on 07 3467 1582 to organise a friendly catch up over coffee.
