August 8, 2017
Refinancing can help you save tens of thousands of dollars on your home loan and empower you to meet your financial goals. There is an ‘if,’ however. You need to find a good deal when you refinance. Because of the costs involved in refinancing, you need to play your cards right in order to save serious money and make refinancing worth it in the first place.
Hint: the best refinancing deals aren’t always the attractive rebate offers or intro rate discounts. Look around, calculate the differences in what you’ll potentially pay over the long-term, and use these secrets to get the best deal when you refinance.
Sometimes the grass isn’t greener with another lender. In fact, you may be able to save on paying expensive borrowing costs if you stick with your current lender when you refinance. If you just want to get a lower rate, start by exploring your options with the bank you have now. Especially if you have been making your repayments on time, they may make it in your best interest to refinance with them.
First, determine what your ideal home loan looks like. What interest rate do you want? Would you benefit from switching to a fixed rate home loan, or to a variable one if you are paying down a fixed rate loan but want to take advantage of falling rates?
Are there any features you don’t have in your current home loan that you are interested in, such as a free offset account and redraw? On the other hand, are you not using the features you do have and want to switch to a basic loan with an ultra-low rate? Also, consider factors like customer service, branch access, and online access.
Have a clear idea of what you want. Then compare what loan products are currently available.
This is the key to getting a great deal. You need to know how much you are going to spend in order to save. Calculate, not only the fees you’ll have to pay but the change in total interest payments if you extend the term of your loan.
In order to qualify for the best refinancing deals, you’ll need to be a strong borrower. Look into your credit file to ensure you don’t have any late payments or other issues. When refinancing, don’t apply to multiple lenders hoping to get the best deal. If you do this, you’ll add several enquiries into your credit file, which can drag your credit score down.
A mortgage broker or other professional can help you find the best deals to suit your specific needs and expectations. There are countless loan products available. It’s difficult to know which is the best for you without a lot of experience in the mortgage process. A broker can also work with you to determine if you are in a good position to refinance in the first place.
You can get a great deal when you refinance. You just have to know how. With a little preparation before you apply and professional guidance, you can set yourself up for the best deals, and the best refinancing experience possible.
Written by Refinancing.com.au
Refinancing.com.au is an end-to-end service that helps people refinance their home loan. We empower you to search for your home loan, and choose the process that suits you.
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