Are you getting the best deal on your home loan?
Have you looked at other options recently?
If you chat to one of our friendly brokers, we can examine your personal situation to see if it’s possible to save you thousands on your existing finance by switching you over to a more competitive rate.
The best thing is – your consultation is free!
Is refinancing the right option for you?
Refinancing your home loan isn’t the right option for everyone in Perth, but in the right circumstances it can save borrowers money, time and stress. Our brokers are experts at dealing with refinancing, so we can tell you what it’s about, if it’s right for you, and how much you can save.
So what does it mean to refinance your home loan? It’s when you take out a new mortgage with a different lender or negotiate a better one with your current lender. There are many reasons that you might want to do this, such as changing your type of home loan, securing a lower interest rate, or if you’re unhappy with your current lender. Our expert brokers at Mortgage Hero in Perth can have a look at your situation and help to see if refinancing your home loan will be right for you.
As with everything to do with mortgages and finance, this can be a confusing process. Here are some of the circumstances that may mean its a good idea, and others where it might be best to stick with your old home loan.
You should look at a refinance of your home loan if:
- Your financial situation has changed significantly for the better
- Your interest rate is higher than what is being offered on the market
- You think it is a good time to make the switch from a variable rate loan to a fixed rate loan or vice versa
- You want access to funds for investments, renovations or other important reasons
- You have credit card or other high interest debts that you would like to consolidate at a lower rate
- You are recently divorced and need to settle your finances
You probably shouldn’t refinance your home loan if:
- The prepayment penalties on your current mortgage are higher than the benefit you will receive
- You think your credit rating has changed for the worse
- Your loan balance is small and you don’t want to draw out any of your equity
- You don’t plan on keeping the property for a significant period of time
- You have an uncertain income or employment situation
Get expert advice to ensure you choose the right home loan option
There are many nuances to each of these situations, so it’s best to get some professional advice from one of our experienced and knowledgeable Perth mortgage brokers. Refinancing your home loan is a long term decision, so you need to be able to think about how it will affect your future. It is best to talk with someone about your goals to try and work out the best path towards them.
If you are thinking about refinancing, you also need to take the complexities into account. There will be an extensive amount of paperwork as well as fees, which can include entry, exit, legal, application, valuation and stamp duty fees. It’s not a cheap or simple process, which is why it’s best to talk to a qualified broker so that they can help you to figure out whether it is the right move to save you money in the long term.