Refinancing? The Pros and Cons!

Posted on the March 2nd, 2016 under Uncategorized by Laurence Pharoah

A Guide To Refinancing Your Home Loan

  • When did you last review your home loan?
  • Do you know what your current interest rate is?
  • Are you happy with the service of your bank?
  • Are you doing all you can to pay off your home loan as quickly as you can?

There is a lot to think about when you are looking to refinance your home loan. Refinancing is when you switch your home loan, either to a new lender or with your existing lender. It’s often done to get a home loan with lower interest rates or fees, or when circumstances change, for example when renovating a home.

Do Your Research

The very first thing you should do is call your existing bank and ask them for a lower rate. Do your research first! Talk to Mortgage Brokers Brisbane and have a look at what other banks are offering and see if your current bank will match that offer. If they match it that is awesome! You are saving money and you don’t have to go through the hassle of moving banks. If they will not match the offer you should look at the pros and cons of refinancing before making a decision.

The Pros Of Refinancing:

• If you decrease your interest rate you will pay the bank less interest! It is better in your pocket and NOT the banks!
• Improve your cash flow. If you are struggling from pay to pay and want extra money to help fund your lifestyle this could be a good opportunity to consolidate debt and have more money for you and less for debt.
• It’s a chance to consolidate debt. If you have credit card debt or a personal loan at a higher rate there could be an opportunity to add it to your home loan at a lower interest rate to save you money.
• The new bank may give you incentives to refinance to them. Banks have different promotions throughout the year that give you a lump sum cash back if you bring your home loan to them. Your Mortgage Broker Brisbane can tell you about the various bank promotions.
• Unlock some equity in your property. As a part of the refinance process, the bank will require a valuation of your property. You could have some equity that is available to you. That equity could be used for numerous things. You may want to pay out a credit card, do some investing, buy a car or do some renovating. If you have the income to service the debt the bank may give you a higher amount to fund your goals.

Sydney Morning Herald On Refinancing

The Cost Of Refinancing:

refinancing• Going through the process of applying for a new loan. Brace yourself!! When you refinance you are starting the process from scratch. You need to let your new bank all about yourself. They will want payslips, valuations, details of your assets and liabilities, bank statements and possibly more. It can be time-consuming and it is a great idea to speak to a Mortgage Broker Brisbane to help make the process easy.

• Understanding the fees. You need to do your research and understand the fees your existing bank will charge you as you leave as well as the new bank. There may be discharge fees, govt fees and establishment. Once again by speaking to a Mortgage Broker Brisbane they can do the work for you and make sure it is in your best interest.
With record low-interest rates there has never been a better time to review your home loans. You may have the best solutions for your needs or they may be better options for you!
There is no cost to you to review your loan and you could save money!!

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