Time to refinance your home loan? - Option Home Loans

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Refinancing can save your money

Did you know that you can save money by selecting the best home loan refinancing option and combining your current loans into one?

“Whether it’s to reduce interest rates or monthly repayments, consolidate debt, cash out equity or access new loan features, refinancing is a popular solution for borrowers with changing priorities.” (bluestone.com.au)

Bluestone.com.au listed 5 reasons to refinance your home loan. Here’s why refinancing your mortgage might make a good sense:

  1. You want a lower interest rate or monthly payment
  2. You want to consolidate personal debts into your home loan
  3. You want to access different loan features
  4. You want money to spend on a short or long term goal
  5. You want to shorten your loan term

Bluestone.com.au listed potential benefits of refinancing and one of the most common reason is to reduce your monthly repayments which is especially helpful when your financial difficulty is temporary – like after a divorce or separation. Another benefit of consolidating debt into your home loan is a reduction of the interest rate charged against by the physical asset you purchased – your house.

It seems that Australians have adopted the new ways of consumerism and started to seek options for their current loans.

“Australians are so fed up with the big banks’ bad behaviour that their latest rate cut delay tactics have been the last straw for many customers. We’re now seeing a huge shift to smaller lenders, who have been rolling out the red carpet with unbelievably competitive rates.” (mozo.com.au)

 

Is refinancing a good option for me?

If you have unexpected expenses and you are left with several loans, refinancing might be the right answer for you. Here are 4 reasons why it makes sense to refinance (Citibank.com):

  1. You’re nearing the end of your fixed term
  2. Your kitchen, bathroom or bedroom needs an overhaul
  3. You want to take control of your finances
  4. You want to build your wealth

“If you are one of the many homeowners who have been putting off a home loan health check, there’s never been time to see if it’s worthwhile switching.” (Citibank.com)

But when refinancing, what questions to ask and what to know? Bellpartners.com listed questions to think when refinancing:

  1. How often should I review my current loan?
  2. Have circumstances changes?
  3. What are my current options based on my current circumstances and the current lending environment?
  4. Why have my options improved or worsened, and what can I do to improve them?
  5. Does the new product meet my current needs and future plans?

Bellpartners.com also stated that most of us won’t look to refinance unless triggered by some other event such purchasing a new home or investment property, doing some renovations or improvements, or consolidating other personal liabilities against your home.

 

Where to start?

It’s good to define your current situation, goals – what you want to achieve, and terms of your loan. For this, you can get free advice from your trusted broker.

“Firstly, your mortgage broker offers you impartial and independent credit advice – they’ll know your situation and whether refinancing is likely to be a good move or not. And secondly, because your mortgage broker has access to all the latest products and offers from a broad range of lenders (in our case, we can access 30+ lenders in our lending panel). This means they can find you the best offer for refinancing, make the process smooth for you, and help you stay ahead of the banks.” (rateseeker.com.au)

 

Benefits of using a loan broker when refinancing;

  • Only one application
  • Compare more than 35 home loan lenders
  • Get free expert advice
  • Get better rates
  • Save time and money
  • Less paperwork for you
  • Guided help to apply for the First Home Owner Grant or other government incentives
  • Easy and convenient
  • You’ll have expert’s advice and support at every step

 

How it works?

At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be into touch.

Make your life changing decision and contact us today!

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References:

https://bluestone.com.au/AU/Mortgages/Customer/Customer-Insights-Articles/5-reasons-to-refinance-your-home-loan

https://www.citibank.com.au/aus/insight/home-loans/4-reasons-why-it-makes-sense-to-refinance.htm

https://www.bellpartners.com/insights/understanding-refinancing-what-questions-to-ask-and-what-to-know/

https://rateseeker.com.au/is-it-time-to-refinance-your-home-loan/#!

https://www.bluestone.com.au/AU/Mortgages/Customer/Customer-Insights-Articles/how-to-use-home-loan-to-consolidate-debt

https://mozo.com.au/home-loans/articles/borrowers-compare-and-switch-after-RBA-cut?utm_source=MNative&utm_campaign=bankswitch&mz_source=MNative__bankswitch