Is it time to refinance my home loan?

By the resi financial blog team, 21 October 2013

When should I refinance my home loan

Throughout our lifetimes many things can change, whether it's getting a new higher-paying job, a loss of income, an addition to the family, or even a change in the economy - they can all have an impact on our financial situation.

When you experience a change in your life or finances it's a good idea to then revaluate your home loan and possibly look into refinancing.

Securing a better rate

A good time to refinance is when interest rates are low. Securing a lower interest rate will save you money on your monthly repayments.

It’s important to consider the fees involved with switching your loan, however sometimes mortgage lenders offer cash back incentives that could help alleviate the refinancing costs.

Debt consolidation

Another reason to refinance may be to consolidate debt into your mortgage. If your household has been feeling financial stress from paying other existing debts, then this option is a great way to reduce some of that pressure.

Consolidating your debt means that it will all be fixed to one interest rate and one monthly repayment.

Credit cards and personal loans can often be tied to a high interest rate, but consolidating it into your home loan will mean that you can pay it off at a lower rate.

It's important to note, however, that refinancing is not for everyone and there can be costs incurred in the process. If you feel like refinancing is an option, talk to a resi loan specialist to discuss the refinance loan options available to you.

Categories: Home Loans