Thinking of refinancing your property?
Refinancing is the process of transferring your home loan from one bank to another. When you refinance, you’re essentially paying off your existing loan while taking out a new loan with a different lender. Whether you are hoping for a better deal on your home loan, or looking to add an investment property to your portfolio, there are several things to watch out for. Before taking the plunge, it’s important to understand how refinancing works and what it’s intended to achieve.
Perhaps your financial circumstances have changed, or you’re looking to take advantage of better interest rates. Or, maybe you are looking for debt consolidation. That’s when we refinance, and hopefully do so in an informed way.
Many borrowers’ financial advisers and mortgage brokers are helpful, such as our team at the Lending Room, who have access to a wide range of lenders and banks. It’s what we do!
The best time to think about refinancing is toward the end of your current loan’s term (if fixed term), or when your circumstances change. Perhaps your income has increased, or you’re looking to buy a new house or investment property.
If interest rates are decreasing, you could also consider holding out for a lower rate when your mortgage comes up for renewal.
Whatever the case, switching your home loan to a new bank is a big decision. If you’re thinking about home loan refinancing, be sure to weigh up all the pros and cons, and remember, we’re here to hold your hand at every step. To learn more about how to refinance your mortgage, talk to the team at the Lending Room.