Refinancing. Everyone talks about it. But what’s the big deal? And why refinance, anyway?
Do you have the best loan?
Think back to when you first took out your home loan. Did you simply walk into a bank and take the first loan on offer? Or did you research, shop around, talk to professionals, and find the best available option?
Well, time has passed since then. And your loan might have been a great choice at the time, but the market is very competitive. Now, your loan could be in the back of the pack. You may be able to save a considerable amount of money by finding lower interest rates and better fees.
And that money can be put to work elsewhere or used to pay down your principal, thus shortening the life of your loan and saving you more in interest down the road.
Open up options
Refinancing isn’t just about finding a better interest rate. You may want to access other loan features, such as being able to redraw, take a break from repayments, or link an offset account.
When you refinance, you can often consolidate other, higher interest debts in with your home loan. This reduces your overall repayments and can make it easier to manage your debts.
Plan for the future
Another possibility when you refinance is to access equity that is in your home. This equity can be used to add value, such as by renovating, or to build your investment portfolio.
So why refinance?
There are many possible advantages to refinancing. You may be able to save money, increase your flexibility, and set yourself up financially for the future.
You didn’t settle for the first loan you saw when you first invested in property. You were proactive. So be proactive again. Contact us today for professional advice and see if refinancing could improve your financial future.