What is refinancing?
The mortgage market evolves. Lenders develop and release new loan products to remain competitive and you can take advantage of the competition. Refinancing refers to the revision and restructuring of debt. It involves obtaining a new, more competitive loan to replace your existing one.
Why should you refinance your home loan?
Reduce you rate
Securing a lower interest rate decreases the amount of interest you pay over the term of your loan.
Spend less every month
A lower interest rate decreases your monthly repayments. Lower monthly repayments mean you have more money every month to spend on yourself.
Pay it off quicker
Refinancing your home loan allows you to renegotiate the length of your loan. If your interest rate is reduced, you could put that extra money straight back into your home loan to pay it off even quicker.
Embrace new priorities
Your priorities may change and refinancing allows you to find a loan that is better suited to these new priorities. You may now be in a position to voluntarily contribute extra repayments or you may want to cash out some of your property’s equity to purchase an investment property.