Why Should I Refinance my Home Loan?

Home finance

In this article, we thought we’d explain some good reasons to restructure your home finance. Here’s what the team at Home Buyers Program suggest.

Lower interest rate

Some homeowners refinance to access a lower interest rate. This may be done to decrease their monthly repayments to free up their budget or they my chose to lower the monthly minimum repayment while keep paying the same monthly amount. This will help them pay their home off sooner, while saving them tens of thousands of dollars in interest.

While you may save on the lower interest rate it is essential to check with a professional on what fees may be incurred when refinance to ensure that it feasible.

Switch between variable & fixed interest rate

If you’d prefer the certainty that repayments will stay the same for a period of time, you may wish to switch to a fixed rate. Conversely, you may decide you’d like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future.

It is important to speak with a professional regarding the advantages or disadvantages of switching between the two and to find out the costs (if any) to switch.

Access equity in your Home

By accessing the equity in your home, you may be able to achieve many objectives, and they may be;

• Using your equity to purchase an investment property
• You may want to invest in other opportunities to secure your financial future
• It may love your location but your home needs updating. It may be beneficial to access your equity to renovate your home rather than go through the pain of selling and buying
• You may want make room for the ever-growing kids that won’t move out. You could access your equity to build an additional dwelling at the rear of your home.

There are a myriad of reasons and opportunity to use your home equity. Many financial institutions have many different requirements on how to access and also what you can use that equity for. So, it is important to speak with an expert to find out how best to access your equity.

Consolidate debt

Refinancing your loan may give you an opportunity to streamline your expenses. You could take your high interest debt, like credit cards, a personal loan or even a store card. You could refinance these debts into your home loan taking advantage of a much lower interest rate. Enabling you to have one loan repayment, freeing up your budget.

Obtaining the right advice on this could also help you save thousands of dollars on your home loan and help you pay your loan off earlier. Reach out and let an expert help you.

Reasons to Refinance could also mean

There are many benefits to refinancing your home loan, some we have discussed here. But there are many other benefits like;

• Flexible rate options
• Offset Accounts
• Redraw Facilities
• Repayments Holiday
• Flexible payments.

While these are all beneficial you must be aware that they don’t all suit everybody’s situation. So, it is important to speak with a Finance Professional to see what best suits your needs. At the Home Buyers Program we are the experts and we can help you free of charge to refinance your home loan to best suit your needs.