There are many considerations when you are looking to refinance your home loan. There are both reasons to refinance and reasons not to and many of these are listed below. There are also costs associated with refinancing that must be considered and our broker will work in concert with you to review your situation and help you decide if there are net benefits for you to refinance. We will review your current situation and develop possible options for you to consider before you decide.

Our objective is to provide a value added service that will keep your loan healthy.

Reasons to Refinance

  • A material change in your financial circumstance.
  • The current lenders rate is not competitive with the rates available in the market.
  • You want to consolidate other debts such as credit cards, car loans to obtain an overall better financial position.
  • You want to refinance to get access to available equity in your property/security to fund other things such as purchase an investment property, renovations, purchase a motor vehicle etc.
  • Switching to another loan at the termination of a fixed rate period or at the expiry of a special introductory rate period mortgage product.
  • If you have had particular concerns about the current lender due to service or the mortgage product that you currently have.
  • To reduce upside risk, e.g. to go to a fixed rate when interest rates are rising.  

 Reasons NOT to refinance

  • Your current loan is FIXED and the exit fees are higher than the benefit gained.
  • Your current loan has LMI included and the property value is likely to need LMI to be paid again and the LMI outweighs the savings benefit.
  • There is not a significant difference in the rates between your current loan and possible refinancing lenders products and the saving therefore would be minimal.
  • If you have had some credit concerns since getting your current loan and these concerns could possibly result in going to a specialist lender who has high rates and fees.
  • The current loan is near the end of its mortgage period and you will soon be debt free and own your property outright.
  • You have significant equity in the property already and can REDRAW cash to achieve your current goals.
  • As circumstances may have changed since getting your loan and your income or savings history does not support going to another lender.
  • If you are considering putting the subject property on the market in the short term.