There can be many reasons for refinancing including the chase for lower interest rates, fixing a loan or gaining equity.
Here are a few tips for refinancing from our experience with clients at Home Loan Connexion:
- What’s the benefit of refinancing? Is it a better rate? Better service? Debt consolidation? It could be one of many reasons but make sure you know why you’re doing it and how it will improve your life.
- What are the financial implications? Are the long-term benefits of refinancing going to outweigh the refinancing costs? It’s a necessary question but one that is answered quickly.
- Make sure you have good conduct of your existing loans. If you’ve missed five payments in the last six months, then it won’t be easy to get a reduced rate. Always ensure that you have made payments when required.
- You must have good equity in your current property. You’ll need at least 10 per cent equity for your refinancing project. To help, upfront evaluations can be carried out at no cost. Home Loan Connexion can organise this.
- Scout all of your options. This is where a broker becomes an excellent ally. While banks are limited to the products that they sell, brokers can move between multiple lenders to find the deal that fits best for the client.
If you can keep these factors in mind, refinancing doesn’t need to be stressful. We’re always happy to guide you through the necessary steps. Call us anytime on 1300 888 299 or email us here.