Is it time to refinance your home loan?

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Refinancing could save you thousands

Most homeowners purchase their property with a home loan. In many cases, people find a loan to suit their lifestyle then forget about it, sometimes for years and years. But changes in lifestyle and circumstances can mean that these home loans no longer represent the best deal out there, so it makes sense to shop around and see if there is a more competitive loan on the market.

 

Secure a lower interest rate

One of the most popular reasons to refinance your home loan is to secure a lower interest rate. Even lowering your rate by 1% could be worth the change, instantly saving money on your monthly repayments and the total overall cost of your loan. The key is to shop around and know where to get the best deals. At Reventon, we can help find a competitive rate and do all the sums to determine whether switching products is worth it.

 

Shorten your loan term

Most people find that after five or 10 years of career progression, perhaps sharing finances with a partner, they can afford some extra luxuries in life. We encourage our clients to use this money wisely, and shorten their loan term to reduce their monthly repayments. It’s an excellent way of getting debt free quicker and could save you thousands on interest payments across the loan term.

 

Even if you don’t have extra money, shortening your loan term may still be an option: if interest rates are favourable compared to when you first took out your home loan, you can use this to your advantage by shortening your loan term without paying extra each month.

 

Convert your loan type

Variable-rate versus a fixed-rate mortgage is a tricky question and one that needs to suit your financial circumstances. Refinancing can help you to switch your rate and move to a product that you are comfortable with. Variable-rate mortgages generally offer lower rates than fixed mortgages, but they are dependant on an index that could change substantially over time so you need to be able to respond to potential rises. If you want more stability, you might want to switch to a slightly more expensive fixed-rate mortgage, particularly if the economy is volatile.

 

Refinancing to release equity

Refinancing you home enables you to gain more equity to spend how you wish. We advise our clients to reinvest with caution as you are taking money out of your home and increasing your overall debt. But there is such a thing as good debt, and if you are using equity in your home to build your wealth – for example as a deposit to purchase an investment property or as a method of consolidating your debts – we can help to guide you thought the process responsibly.

 

Seek advice for refinancing your home loan

Whether you’re refinancing your home loan or investment, our expert knowledge of the finance industry will ensure you make the right refinancing decision.

Our team of financial and property investment experts can determine your borrowing capacity and costs of refinancing, organise and process all the paperwork and negotiate the most competitive rate of your behalf

Discover the best refinancing route for you, book a meeting with an expert.


 

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