For consumers planning on a home loan refinance, interest rate stability, increased home loan product choice and flexible mortgage interest rates have created the prime environment .
Competition in the mortgage market is fierce with major lenders slashing rates and releasing some enticing mortgage products in a bid to win over your business.
As the banks continue to battle over market share, an increasing number of borrowers are realising the potential savings on offer should they decide to make the switch to a new lender and apply for a home loan refinance.
The mortgage you have now may no longer be the most appropriate or most affordable option available, so if you are unable to remember the last time you had a home loan health check, now may be the time to do so.
Whether you are looking to drive down your mortgage balance or reduce your repayments, refinancing may be the ideal strategy.
With exit fees now abolished, the cost of switching have been greatly reduced, however there are some more costs that you will need to consider before changing to a new lender.
Switching home loans can carry other costs such as new application fees, legal fees and mortgage insurance.
However, establishing which home loan best fits your needs can be quick and relatively stress free.
How you can benefit from a home loan refinance
Here are some ways refinancing can really boost your current financial situation:
- Find a better interest rate: Bank competition, coupled with interest rate stability, has created some real opportunities for borrowers. Refinancing your mortgage to a fixed rate product will give you certainty around loan repayments. However, you should also consider break costs which may apply if you break your term early.
- Unlock the equity in your home: Investors can use refinancing as an effective way to unlock the equity in their home, giving them more funds to act sooner. It is also a terrific way to gain some extra cash when renovating your home.
- Debt consolidation: Finding it difficult to keep track of all your debts? Refinancing can place all your debts, including store and credit cards, into one loan. This will help you manage your debt more effectively and potentially save you thousands in interest rate repayments.
Which option is best for you, even staying with you current loan, will depend on your circumstances.
A mortgage broker can help make sure moving from one home loan to another is as safe and hassle free as possible, moreover, a mortgage broker can work with you to find the most appropriate product to meet your needs as well as help you through the application process, if a home loan refinance is the way to go for you.