refinance home loan

Being loyal to your home loan lender could be costing you thousands of dollars over the course of your loan term. The mortgage market today is competitive, with plenty of lenders offering great deals to all types of borrowers. Refinancing your home loan could result in a cheaper home loan which better suits your needs.

What is refinancing?

Refinancing your mortgage means switching your home loan by either moving your loan to a new lender, or changing the type of home loan you have with your existing lender. Refinancing is typically done to get a lower rate or to gain access to features that better suit your personal situation.

Why should I consider refinancing my home loan?

There are a number of reasons why you might like to say goodbye to your current home loan, and welcome a new one. MG Partners’ associate mortgage broker will do the hard work in finding a home loan that is suited to your circumstances, so you can focus on your new features and savings!

For a better interest rate

The most common reason for refinancing is to get a better deal with your interest rate. But be weary of any exit fees for leaving your current home loan and also the fees for taking out the new mortgage. It’s important to take into consideration all costs before you get fixated solely on your interest rate.

To get new features

Basic home loans lack certain features that can be quite attractive in other loan types. Features like additional repayments, portability, and offset accounts can help you save on interest repayments. The added flexibility that new features bring can be helpful depending on which stage of life you’re at. For example, with a redraw facility you have the ability to pay extra money into a mortgage and then redraw it later.

To pay less in fees

When comparing home loans, fees should always be a major consideration. Whether it’s an application or establishment fee, or an ongoing monthly or annual fee, it’s important to take a look at the long-term implications. Could you be paying less in fees? MG Partners’ associate mortgage broker can let you know if you’re not sure.

To access and use equity

If your home has appreciated over the years, a home equity loan could help you to tap into that amount. You can use this equity to purchase other properties or assets, such as funding a renovation for your home or purchasing a new car.

To get a loan that better suits your life

First home buyers

  • Low rate and low fees
  • Ability to make extra repayments
  • Introductory rate or basic home loans may suit these borrowers

Young professional or family

  • Portability
  • Redraw facility
  • Standard variable or fixed rate loans may suit these borrowers

Middle aged professional

  • Redraw and offset facilities, packages with linked products
  • Convenient and flexible product
  • Package home loan or line of credit loan may suit these borrowers

Preparing for retirement

  • Low rates and fees
  • Ability to access home equity
  • Line of credit home loan or basic home loan

55 and over/retired

  • Redraw facilities and option to access equity
  • Line of credit home loans or reverse mortgages may suit these borrowers

If you’re looking to refinance your home loan, MG Partners can refer you to our associate mortgage broker, John Deriu who can take the hard work out of your decision. Want to learn more about John? See his ‘get to know you’ blog hereCall us today on 03 9523 6500 or email us at reception@mgaccountants.com.au