Simply put, refinancing is taking out a new home loan to pay out your existing mortgage. People of Perth do this for many reasons. Some of these reasons include consolidating debt, getting a better deal and releasing equity. There are many advantages to refinancing that you should consider when talking with your Perth mortgage broker.
The banks are competing for your business
It is worth considering this when you look at refinancing. These days it is quite cutthroat between the banks and they are often trying to offer enticing deals to people looking to refinance. A quality mortgage broker will be able to fill you in on the current lender special offers and better deals to suit your needs. Refinancing can result in you being in a better financial position than you previously were.
Refinancing to release equity
In Western Australia house prices have risen dramatically over the past 15 years. For that reason a lot of people of Perth have equity in their home loan that they can unlock to enhance their life. The examples where refinancing to release equity can be beneficial include investing in an investment property, investing in shares or managed funds, funding home renovations, contributing to weddings, paying for holidays and funding children’s education costs.
Refinancing to consolidate debt
Many Australians including those in WA are burdened by personal debts that can cripple lives and lead to financial stress. One way to reach financial freedom from debt is to refinance your home loan to incorporate these debts into the mortgage. In Perth the most common personal high interest debts that can be refinanced are credit cards, personal loans and car loans.
Whatever reasons you may have to consider refinancing you should make an enquiry with Perth home loan experts Loan Monster. They are here to help and explore and explore your future home loan options.