C&G’s Guide to Refinancing
Have you stumbled across a new home loan that offers more competitive interest rates and monthly repayments? Or are you considering a new investment property and want to reassess your finances? It may be in your best interests to investigate new lenders and refinance your home loan. In this C&G blog we unpack the most important considerations when it comes to refinancing.
What is refinancing?
Refinancing is committing to a new home loan in order to pay off your current loan. This is possible to achieve with your current lender, however many people will also opt for a new lender. You may be able to enjoy new benefits such as a lower interest rate or reducing your monthly repayments.
Why do people refinance?
There are many reasons why homeowners will choose to refinance, and it will often depend on their individual circumstances. Some of the most common reasons include: finding a better interest rate with a different lender, borrowing additional funds to renovate or extend the property, consolidating debt, or simply wanting to pay a home loan off sooner.
What steps are involved?
Your first step should involve determining whether refinancing is the right decision for you. While a new loan may offer lower repayments or monthly fees, there may be additional costs involved in ending your current loan and starting a new one. These can include termination or break costs, loan establishment fees and lenders mortgage insurance. Consider speaking to a mortgage broker, who will be able to help you compare lenders and explore the best options for your financial circumstances. They can also assist with preparing your refinancing application, which will be similar to the process you completed when you took out your initial loan. The refinancing process often takes around 2-4 weeks to complete.
Thinking about refinancing? Don’t hesitate to speak to the friendly team at Chisholm and Gamon about your property goals. We’d be delighted to provide advice and refer you to a reputable service to help you make the right decisions.