5 benefits of refinancing

First published 17 September 2020, 12:00 PM

There are a number of reasons why borrowers choose to refinance their home loan. From accessing equity to consolidating debt, save money with a better interest rate, to simply pay off their loan sooner and also to renovate.

Thankfully, refinancing doesn’t have to be a daunting process, in fact you may find it surprisingly effortless as your Mortgage Choice broker does most of the legwork for you and provides you with the expert advice you need along the way.

Check out our 5 benefits of refinancing below and for more information on refinancing and what benefits might be available to you, contact your local Mortgage Choice broker or simply fill out the form to fast track your home loan health enquiry today.

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Benefits of refinancing

1 Save money

In the current environment, no home owner can afford to just assume their loan offers good value. If you’ve had your loan for a few years, chances are, there could be scope for you to save. By securing a cheaper interest rate and lowering your monthly repayment, you could be entitled to more savings than you realise. Curious? Here’s how one of our local Mortgage Choice brokers helped this family to save $1,000 a month!

2 Pay off your mortgage sooner

By refinancing to a better rate, you’re reducing your overall interest payable and, therefore, your total home loan balance. It's worth realising it doesn't have to take 25 or 30 years to pay off a home. Here are some top tips you’ll want to read that could just help you become mortgage-free ahead of time.

3 Equity to fund purchases or lifestyle goals.

Refinancing is often used to free up the equity you have in your current home in order to fund purchases or lifestyle goals. Having access to equity, for example, could help you buy an investment property, renovate, build and more. How much equity you can use will vary between lenders, which is why having a home loan expert on your side could make all the difference when it comes to doing the legwork. Find out more about accessing your home's equity.

4 Debt consolidation

Refinancing your home loan can provide an opportunity to streamline your debt, and potentially reduce the overall interest you're paying on multiple debts through the process of 'debt consolidation'. It means folding several high interest debts into one lower rate debt – which could be your home loan - and this may reduce your total monthly repayments.

5 Bring on better loan features

Many Australian homeowners may have home loans that do not fit their purpose or have “bells and whistles” that aren’t being used effectively. Having the right facilities could save you big time in the long run, so it's worth getting expert advice when it comes to understanding the different loan features available and how you could benefit. Read more in our loan features wish list.

Expert advice matters

Everyone’s situation is unique which is why it pays to get expert advice when looking for a refinancing solution that is suited to you. Your local Mortgage Choice broker has up to date knowledge of what's available in the market and the benefits offered by different loan features.

So, if you’re looking to snap up a sharp rate to lower your loan repayments or perhaps your situation has changed and you’re due for an overall home loan health check, contact your local Mortgage Choice broker and fast track your financial health today!

You might also be interested in:

How this family saved $1000 a month by refinancing their home loan

“We were so impressed with how quick, easy and effortless he made the whole process. It certainly wasn't as painful as we were initially expecting it to be… we are now saving just shy of $1000 per month!”

Resources for refinancers

With interest rates at their historic low and so many great offers available, now is an ideal time to shop around for a better value home loan.

What is home equity?

If you own your home chances are you've built up some equity. You can borrow against equity to buy an investment property, renovate or achieve other goals.