Refinancing is often an attractive option to those with current home loans who are looking for a better deal or something more affordable. However, it is important to carefully assess if refinancing is the right option for you personally. By taking some time to understand certain aspects of home loan refinancing before you proceed, you will be adequately equipped with the knowledge needed to get the best deal possible.
Why it could be right for you
The lending market is so competitive at the moment that, even though the Reserve Bank has stopped cutting cash rates for almost a year now, many lenders are still slashing their home loan deals in order to attract more clients. With this in mind, there’s a good chance that there is a better loan product on the market these days than what you currently have. By considering refinancing your loan, you could get a better deal and potentially save thousands – either by accessing a better deal with your current lender or by switching to a new one.
Before you seek to refinance however, do your homework first and check out various rates on offer in the market. That way, you’ll be better equipped to negotiate a better deal with lenders when you get to that stage. Purely by looking into better rates or features, your lender may be more likely to offer you a better deal in order to keep you as a client. If that doesn’t happen, consider finding a new lender.
Access professional help
When looking for a new lender for your loan, it may be beneficial to seek the advice of a mortgage broker, who can help you access a wide variety of finance options at a discounted rate. When you individually visit a bank to get a quote, the banks make a note on your credit file indicating that you’ve enquired about that product. If you enquire about this loan product at too many banks, a note will be put on your credit file making it more difficult for you access the funds you need.
This is where using a mortgage broker can benefit you. They will do all of this research for you in order to not only save you time and money, but to preserve your credit file records until you are ready to choose a provider.
So, is refinancing for you?
Refinancing isn’t just about getting the most attractive interest rates. Rather, it is about looking for other products that may be more suitable for the current life stage you are in, or for reasons such as a change in your circumstances (e.g. losing your job, adding a new member to your family).
Whilst refinancing can save you money, it may also help you realise that you are currently accessing the best loan product available to you. Refinancing may not suitable for everyone however it is still a valuable exercise to do every few years to ensure that you are still utilising the best loan solution for your current circumstances.
If you are thinking of refinancing, the leading team of brokers at Launch Finance can help. Contact us today to see how much you could be saving on your loan.