Refinance your home loan: Take control of your financial health

By the resi financial blog team, 03 October 2013

Take control of your financial health

After making repayments on your home loan for an extended period of time, you may find that the features you got at the beginning of your mortgage's life cycle aren't necessarily continuing to mould with your current life situation.

If this is the case, you may want to regain control of your finances by refinancing your home loan.

For example, one of the major reasons many people refinance their loans is to help secure a better interest rate.

Following the Reserve Bank's decision to cut the cash rate to a historically low 2.5 per cent earlier this year, many people have considered refinancing their home loan to take advantage of this and lock in a lower interest rate.

This could be a fantastic option to help you reduce the overall amount you'll be paying, especially if you can secure a fixed term loan with the most competitive interest rates.

Adding a number of facilities to your home loan can also be achieved through refinancing. Features such as redraw and lines of credit can be implemented with your home loan, while the ability to change your repayment criteria is another aspect to consider.

For example, many people choose to make additional payments on their loan in order to get debt-free faster. On the other hand, it's possible to organise a repayment holiday, if you're finding yourself financially strained.

Taking control of your finances is easy, and making your home loan work for you in the long run can help you to accumulate wealth and become safe and secure with your property.

Categories: Financial Services, Home Loans