Why Refinance

Wednesday, January 22, 2020 / Finance

Refinancing a home loan is simply switching to a different loan. You’re essentially replacing your current loan with a new one, usually with a lower rate of interest and better features, and while there are many reasons for refinancing, the top motivation is often to save money.

There are a number of reasons you may want to refinance your home loan.

  • You may be looking for a better interest rate

  • You may want features and add-ons such as flexible repayments, redraw facilities and account splitting

  • You may be looking to use the equity in your home to renovate

  • If you’re coming to the end of a fixed rate term, it can be a good time to see if you can get a better interest rate or a more flexible home loan

  • You may be looking to consolidate debts such as a personal loan, car loan or credit card onto your mortgage, so it’s easier to manage your finances.

  • Refinancing may offer potential tax benefits, if you refinance to access equity in your home and use those funds to invest in property, shares or other wealth-building opportunities

So why don’t people refinance more often? There are a few reasons.
First, there is a misconception that refinancing is complicated, but it doesn’t have to be. A good home loan specialist or mortgage broker can do the hard work on your behalf, making it simple to save money.
Refinancing can sometimes incur fees, such as an exit fee from your current loan and the usual costs associated with establishing a new home loan. So before you jump into a refinance, understand the associated fees, so you understand how much money you’re really saving by refinancing.
Being informed and knowing your options is the first step.
To help, WAW has developed a Mortgage Refinance Guide to give you peace-of-mind.
Our home loan specialists are knowledgeable and provide expert advice about refinancing and how it could benefit you.

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