Over the past few years, both owner occupiers and investors alike have benefited from record low interest rates and ever-increasing competition from the major banks, boutique lenders and mortgage brokers.
And while this has certainly assisted many in sourcing competitive property finance, it also can present an opportunity to review your situation and look at refinancing as a way to help you reach your goals sooner.
If you are on a variable interest rate loan you are free to refinance at any time. If your rate is fixed, the opportunity to refinance becomes available at the conclusion of any fixed rate period or loan anniversary date.
Refinancing can help you reach your goals sooner.
There are a number of benefits in mortgage refinancing to consider including:
Lower repayment amounts
Take advantage of lower interest rates, fixed terms or simply reduce the amount you may be paying in fees.
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Pay off your mortgage sooner
If the amount of income you now earn has increased or perhaps if you have returned to work following having children, you could look at more frequent payments or higher monthly amounts to help pay off your loan.
Debt consolidation
Refinancing your mortgage might also include the opportunity to consolidate other credit into a new mortgage, saving you interest and reducing monthly payment amounts.
Unlocking the equity in your home
With recent strong capital growth in residential properties, accessing equity in a property has become a popular way to help fund investing, pay for renovations or support other major costs. Using equity you can get a line of credit based on the current value of a property and the amount you may have already paid off.
Importantly, some loans come with break fees, so it’s a good idea carefully review your loan terms when considering a refinance.
DPN is an accredited mortgage broker, member of the MFAA and brings you access to more than 30 major lenders. Get in contact for more information on our finance services.