Refinancing

When was the last time you checked your Home Loan rate?


Your life never stands still, and neither should your mortgage. If change is afoot, it might be time to search for a more suitable home loan.

Why consider Refinancing and or Consolidating your Debts?

The health of your existing loan should help you determine whether or not you should refinance. Even a small reduction in the interest rate can quickly bring dividends – particularly when we find a lender willing to waive routine charges such as establishment and valuation fees or ongoing annual and monthly fees.

Your Home Loan Consultant will help you assess your existing loan. Think of it as a health check – we will examine the loan for existing ailments (such as monthly fees, hidden costs including cheque books or ATM access, penalties for additional payments and so on, and also evaluate the long-term viability of the loan. If your existing loan is not in great shape the good news is that there are ways you can get a better deal, simply by refinancing to a more cost-effective option.

We will also help you determine whether your existing loan has features that you don’t use or really need – they might not be relevant to your situation. Some features can unnecessarily increase the cost of the loan – so if they are sitting idle, it is money wasted.

Another reason for Refinancing may simply be to consolidate other debts such as personal loans, car loans or credit cards into your mortgage to make your repayments more manageable and also help pay off your Mortgage sooner.

Your Home Loan Consultant will look at your current financial position and also your future financial goals, as refinancing may not actually be a wise decision unless you will save money over the long term.

Your Home Loan Consultant offer a Free Home Loan Review service, it is always a important review your mortgage at least every 1 – 3 years. The main reason for this is to make sure that your current loan facility is suitable to your current personal situation. Everyone’s circumstances change from time to time, and you need to have the best possible loan to ultimately get you owning your home sooner.

Unlocking equity for future investments

You may be able to refinance your property at the current higher value, opening up additional funds which could be used as a down payment on an investment property.

Depending on how long you’ve owned your home or made additional repayments and how much it has increased in value over the years, there’s a good chance that you could have enough equity for a deposit for a investment property already locked away in your home.

Equity refers to difference between the value of your property and what you owe. As the value of your property rises over the years – and your loan decreases – the amount of equity will grow.

The good news for home owners is that this equity can be released without having to sell your property.

It’s important to note that you are effectively borrowing the deposit for your investment property against your own home and this will increase your mortgage repayments.