Refinancing - How do you know when it's time?

Continued movement in official interest rates and between different lenders has prompted a growing number of borrowers to consider the merits of refinancing.

So if you think it may be time to refinance because you believe you can save money by hunting out a better deal, or you wish to secure a decent fixed rate in a bid to lock in costs - you need to consider a few key issues.

Firstly, before you do anything, determine exactly what it will cost to switch from your current loan, so you can work out if changing loans now will actually save you money.

Then determine how the current rate cycle will affect you in the future and see if your loan package is still likely to be competitive in that environment - remembering to take into account the all-important comparison rate on the loan.

Review the structure and features of your current loan to see if they are still appropriate for you. Look at where you are now in your life and where the next ten years will take you, to decide if the loan you currently have is the best one to see you through that next period. 

Finally, take the time to think about your lender and how much that organization is really contributing to empowering you to reach your financial goals. Because if you feel that they’re not genuinely supporting you to move confidently and financially forward, it may be time to take your business elsewhere.

To find out more about your home loan options, call resi on 136 126.

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