Thinking about refinancing your mortgage? With interest rates available from 1.84%*p.a. and comparison rates from 2.36%*p.a., now is the time to make your move. Find out if you could get a better deal on your home loan. Get in touch with Loan Monster today.
How To Refinance
If you’re new to refinancing, you might be a little fuzzy on how it all works and what’s involved. So, before we go any further, let’s cover off the basics.
When you refinance, your mortgage is paid out and replaced with a new home loan. It could be with the same lender, or you could end up moving to a new bank. Either way, the aim is to get a lower interest rate and better terms. It’s also a chance to make the most of any promotions or incentives on offer.
At Loan Monster, we make refinancing simple. All you have to do is get in touch with us. We’ll have a chat to see if refinancing is right for you. If it all looks good, our brokers will go ahead and take care of everything for you. We’ll talk to the banks on your behalf and make sure you come out on top.
The Perks Of
Your mortgage is probably the biggest item in your budget, so it makes sense to want to keep your repayments as low as possible. One way to save money on your mortgage is to get it refinanced.
As you pay off your mortgage, you’ll likely build up home equity over time. By refinancing your home loan, you can potentially unlock your equity and put your money toward something else, such as an investment property.
You can also look at consolidating all of your personal debt into your mortgage when you refinance. It may make your life easier having everything in one place, and you may even save some money too.
Right for You?
While refinancing does come with its benefits, it’s not always the right move for everyone. You need to think about your long-term financial goals and what you want to achieve by refinancing your home. Contact Loan Monster today. Our brokers can help you figure out whether refinancing will work for you.
If you want to lower your loan repayments, refinancing might be the way to do it. Your new home loan may come with a lower interest rate and depending on your circumstances, it could potentially be set at a different loan term. You could refinance to a shorter loan term if you’d like to pay off your mortgage quicker. It all depends on what’s going to work for you.
At the same time, you can also find out if it’s possible to make the switch from a variable to a fixed rate, or vice versa, or even split your mortgage into a combination loan. Find out more about the different types of loans here.
Your Personal Debt
When you log in to your online banking account, what does it look like? Chances are, you have a couple of credit cards, a car loan and maybe even a personal loan for your last holiday.
By refinancing, you have the option to consolidate all of your personal debt. So, instead of having multiple smaller lines of credit, you’ll just have one big home loan that covers everything.
Have a look at the interest rate on your credit cards and personal loans. Now compare that to your mortgage. It’s more than likely that the interest rate on your home loan is much lower. Consolidating your debt isn’t just convenient. It can also mean you may not have to pay as much interest.
It’s always a good idea to have a chat with your mortgage broker about debt consolidation to see if it will be right for you, as you may need to pay off your debt over a longer term.
Your Home Equity
Equity is the difference between the value of your home and how much you still owe on your mortgage. Refinancing gives you the chance to unlock that equity.
It allows you to access some of the money that you’ve either put towards your mortgage or gained in capital growth. You could use your equity to do home renovations, buy a new car or to take a holiday. The choice is yours.
When you refinance, you also have the chance to move to a home loan that offers plenty of features and flexibility. For instance, you could get a home loan with a redraw facility. This gives you the option to withdraw any extra money that is sitting on your loan should you need it.
When Is The Right Time
Everybody is different and refinancing isn’t for everyone. There might be lower interest rates available at the moment, but it might not be the right time for you to make changes to your mortgage.
If you’re thinking about refinancing, here are some questions you should ask yourself.
• How long do you plan to stay in your home? You might want to rethink refinancing If you’re planning on moving soon.
• Are you earning more money now? If your answer is yes, then refinancing could be a good idea to help you pay off your mortgage faster.
• Has your credit score drastically improved? If it has, you might want to consider refinancing as you could qualify for a better interest rate.
• Do you have long term financial goals? Once you know what you want to achieve, you’ll be able to figure out whether refinancing is the answer.
There are lots of different factors to consider. Our brokers can go over all of it with you and help you make the right decision moving forward.
Why You Should Use
At Loan Monster, we’re here for you. Not the banks. We’re all about making sure you get what’s going to work best for you.
You could go to your bank and ask to refinance, but you’ll only get a limited number of options. When you come to us, we can look at loan offers across a wide range of lenders and find the right one for you.
Your bank might not be motivated to get you a better deal. But we are. We’ll make sure the whole process is nice and easy, so you don’t have to worry about a thing.
Want to know more about refinancing? Have a chat with our brokers today. If we think we can help you out, we’ll set up a time to meet. Our brokers are based in Perth and Fremantle. We can meet you for coffee nearby or we can come to you.