If you have had your home loan for more than a year or two then it is highly likely that it is not still the most suitable one for you. Loan products, features and interest rates change constantly – the loan product you currently have may not even still be available today!
Banks need to constantly evolve their loan product offering to remain competitive – their goal is to get your business! The home loan customer benefits from this as a more suitable product available to you. Usually this involves a lower interest rate than what you are currently charged however it may be additional product features such as offset accounts or lower fees.
Additionally, your personal circumstances may have changed. For instance you may have an addition to your family, received a promotion at work or now been operating your own business for over 2 years, allowing you consider refinancing from a Low Doc loan.
Other customers may want some cash out to pay for a holiday, swimming pool or home improvements, or perhaps consolidate some other debts. All of the above are reasons to look at whether refinancing is a viable option for you.
It is important to realise that refinancing does incur some costs. Your existing lender will generally charge a fee, and there is also the discharge / lodgement of the mortgage fee. If you are in a fixed-rate loan your lender will charge “Break Costs” which can be extremely high and be prohibitive to refinancing. At UFSWA our Mortgage Broker will ascertain the true costs of refinancing to ensure that such a strategy is beneficial to you.
Refinancing generally requires some additional equity in your property. If you paid Lender’s Mortgage Insurance when you obtained your current home loan then it will generally not be transferrable or refundable – this is another cost that needs to be considered especially if you will be required to obtain it with a new loan.
The easiest way of determining if refinancing can benefit you is to contact us and let us do the homework for you! We will look at your current situation, your future needs and goals and analyse the hundreds of products we have available from over 20 lenders. Our ‘Home Loan Check-up’ costs you nothing – it’s part of our service to you.
Disclaimer: Loans are approved or declined on their merits by the specific lender and a loan approval is not guaranteed. We believe the information on this page to be correct. However we can give no warranty to this effect and expressly disclaim any liability for loss or damage by any person acting upon the information provided herein.