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Why should I refinance?

refinance options

If you’ve had your current home loan for a number of years, it’s likely that your needs have changed and most likely the RBA interest rate would have a favourable impact on your home loan providing a positive change for the consumer in todays competitive landscape. This will benefit you to ensure that you achieve the best home loan for your personal situation including the lowest rate and features to suit your personal needs, therefore it is a perfect time to refinance your home loan with a Redwood Home Loans mortgage broker.

You may have a different financial situation, but your current home loan may not have the most competitive interest rate, range of flexible features and add-ons that are now available in the competitive market. This is why you should use a mortgage broker to ensure you have access to a wide range of products, lenders and rates to suit your personal needs.

It’s a good idea to review your home loan from time to time, to make sure it is still helping you achieve your financial goals and has all the features you need.

Redwood Home Loans mortgage brokers can refinance your loan to better suits your needs. Refinancing involves simple steps that will be outlined by your mortgage broker involving paying out your current loan with a new loan.

There are a number of reasons you may want to refinance your home loan:

Secure a better interest rate

One of the key reasons home owners choose to refinance their loan is to secure a lower interest rate and reduce their monthly repayments. Redwood brokers will ensure you understand this is not the only reason to refinance your home loan. When comparing home loans, you should take into account any upfront and ongoing costs associated with exiting your current loan and switching to the new home loan. These may include valuation fees, settlement fees, loan establishment fees, mortgage registration fee, loan service, and exit fees and charges. A Redwood mortgage broker will outline the benefits refinancing against the expense involved.

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Switch between variable/fixed rates

If you’d prefer the certainty that repayments will stay the same for a period of time, you may wish to switch to a fixed rate. Conversely, you may decide you’d like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future. A Redwood mortgage broker will outline the benefits of each loan feature to suit your personal situation.

Access equity in your home

Your home is likely to be one of your most valuable assets, and by harnessing home equity you have the opportunity to build additional wealth or simply achieve personal goals.

How can I use the equity in my home?

A Redwood mortgage broker can outline the advantages of accessing the equity in your home. Equity is the difference between the market value of your property and the amount you still owe on your home loan. You can often access this equity and use it to improve your lifestyle.

If you’ve paid down your loan or your home has increased in value, you may be able to use your equity for:

  • Home renovation
  • Investment property deposit
  • Personal leisure such as a car or family holiday

You can access your equity by withdrawing extra repayments under a redraw facility or topping-up your loan. You can also take advantage of a reverse mortgage if you’re over 65 and own your own home, which allows you to withdraw regular payments on your home loan in a lump sum or periodically, without limiting your lifestyle or selling your home.

There are a number of factor that a Redwood mortgage broker will assist you with including the impact of using the equity in your home meaning higher interest repayments. There may also be restrictions on your home loan that can prevent you from making additional repayments or accessing the equity in your home.

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Consolidate debt

Redwood mortgage brokers can provide an opportunity to streamline your debt and reduce interest by debt consolidation. For debt consolidation to be truly cost effective, you need to commit to making additional repayments to pay off the enlarged loan as quickly as possible.

Whatever you are looking for, Redwood Home Loans makes Refinancing your home loan easy, contact us today on 1300 790 110 for a free, no obligation consultation.

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AUTHOR

Ivan Filipovic

Ivan Filipovic is an experienced, independent Property, SMSF and Finance Expert and the founder of Redwood Advisory. Ivan has been educating and coaching investors for over 15 years and has built a successful property portfolio with a number of positive geared properties across Australia.  Ivan provides valuable and honest guidance by educating Australians on how to invest successfully protect yourself with knowledge, contact Ivan today for a complimentary consultation on 1300 790 110 or email ivan@redwoodadvisory.com.au

All stories by: Ivan Filipovic

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