You may be just like many Australians, thinking of refinancing your current home loan. Because you are:

  • Looking at moving house or renovating;
  • Looking for a different home loan option;
  • Looking for a better interest rate;
  • Seeking to achieve your financial goals;
  • Looking for extra cash to invest in another property or even shares; or
  • Seeking better customer service.

Even if you don't have any specific reasons in mind, it is always worth weighing up from time-to-time whether refinancing is right for you, and around every three years is a good time to reassess your financial situation and changing needs.

Getting Started

Before considering refinancing your current home loan you should give careful consideration to:

  • Understanding if you should Refinance Your Current Home Loan (i.e. reasons to refinance);
  • Getting a "Financial Health Check" of your finances;
  • Tax Consideration and Other Things to Consider;
  • Seeking Expert and Professional Advice from a Home Loan Expert;
  • How Much You Can Borrow?

Refinancing Your Current Home Loan for Better Rates

1. Should You Refinance Your Current Home Loan?

If your financial situation has changed and you have had your current home loan for a number of years, then it is likely that your needs and circumstances have also changed. This is the ideal time to review your current home loan and make sure it is still helping you achieve:

  • Your financial goals; and
  • All the flexible features you need, and the add-ons that are now available on the market such as flexible repayments, redraw facilities, and account splitting.

If you find your current home loan does not suit your needs and you find a better home loan on the market that best suits your changing needs and financial situation, then you can consider refinancing your current home loan.

Reasons to Refinance Your Home Loan

There are a number of different reasons you may want to refinance your current home loan, you may be:

  • Looking for a lower interest rate;
  • Looking for new features and add-ons that are now available on the market;
  • Looking for a better interest rate at the end of a fixed rate term;
  • Looking to better manage your finances, by consolidating your credit debts or personal loans onto your mortgage; or
  • Looking to use the home equity in your home to renovate, or invest in another property.

Tax Consideration

Refinancing your home loan may offer potential tax benefits. Particularly, if you use the funds to invest in property and you want to claim a deduction for any expenses incurred while your investment property is being rented out.

Other Considerations

Before considering refinancing your current home loan you should think about your circumstances and ask yourself:

  • Will you be charged an exit fee and a loan service fee on your current home loan?;
  • Will you be charged a settlement fee, loan establishment fee, and a mortgage registration fee on your new home loan? and
  • If you are borrowing more than 80 per cent of the property value, will you need to pay Lenders Mortgage Insurance(LMI)?

2. Getting a Financial Health Check

Refinancing your home loan can offer you savings if you take the time to do some planning. It may be a good idea to give your current home loan a "Financial Health Check" to see how your home loan compares with what else is out there on the market.

Remember. Work out if you will be better off by switching your home loan to another lender/credit provider and if you will save money by switching.

3. Seek Expert and Professional Advice

Singh Finance is a reputed Australian finance brokerage firm. We employ a team of expert and professionally qualified finance brokers who are also home loan experts. Our team of finance brokers will guide you through the refinance home loan process requirements and they will:

  • Compare home loans to find the refinance home loan that best suits your needs and financial situation;
  • Talk you through each refinance home loan to make sure you understand what it will cost to refinance your home loan;
  • Explain some of the upfront fees, exit fees, break fees, start-up fees, loan establishment fees, settlement fees, and government fees and charges;
  • Help you work out how much you can save in the long-term on you new refinance home loan and compare these savings to your current home loan; and
  • Help you prepare a "Financial Health Check" on your personal finances and identify, and advise you of your refinance home loan options

How Much Can You Borrow?

Our team of finance brokers will even help you in determining how much you can borrow? or you can simply click on CALCULATORS and use our handy Borrowing Power Calculatorto calculate for yourself how much you can borrow?

All you need to do is, enter your income and expenses to estimate how much you may be able to borrow for a home loan?

Contact Us Today

For an obligation-free assessment, call on 0424 190 908 today or simply click on the "Enquire Now" form.

Disclaimer: This article is of a general nature only and does not constitute professional advice. I strongly recommend that you seek your own professional legal and accounting advice in relation to your particular circumstances.