Why should you Refinance a Mortgage in Australia?

In addition, if the refinancing of a home loan is performed with proper preparation and planning, then refinancing can also make it easier for a better financial scope for you and your family.   

What is Home Loan Refinancing?  

Refinancing is an approach of proceeding with a new mortgage to replace an existing loan. However, this loan can be with the same lender, but it involves switching to another bank in most cases. It provides you some additional aspects like a lower interest rate or an offset account.  

Common reasons to Refinance Mortgages  

Let’s explore the general reasons to refinance mortgages, including some which you may’ve not thought of earlier.  

1. Lower interest rate: The refinancing of your home loan for a lower interest rate saves your money as well as helps you to pay off the loan sooner. However, every lender uses individual steps to set their interest rates. That is why it is important to consult a home mortgage expert or broker to know what rate you can access.  
2. For renovation: If you are thinking of renovating, you need to save a lot of money since renovating or extending requires additional borrowing funds. If you hadn’t used the available value of your property yet, when you first borrowed, then you can unlock it now to renovate.  
3. Consolidate debt: consolidation of debt is a handy feature of various mortgages, and it could be one reason you are considering home loan refinancing if you’ve lots of credit cards and are paying high interest rates, then in this condition, debt consolidation work well for you. It makes sense to refinance and consolidate your personal debt amount into a home loan to make your payments more manageable.  
4. Fix interest rate: It could be a particularly great strategy to fix your interest rates by mortgage refinancing for a period of time to protect against potential rate increments.  
5. To get better features: Offset accounts or redraw facilities are such features that can help you pay home loans sooner. But if your current mortgage doesn’t offer such aspects and you want to make extra repayments, then it is good to refinance.  

Are you planning for mortgage refinancing now or in the near future? Then you can consult with our experts at Your Finance Adviser.   

Your Finance Adviser is a well-known name in the field of finance advising company based in Australia. Our skilled and expert team is proficient in offering the best refinance mortgage advice to the clients based upon lending terms mandated by Australia’s important banks & lenders.   

Get help choosing the right refinancing mortgage at Your Finance Adviser today.