THINKING ABOUT REFINANCING YOUR MORTGAGE?

Your mortgage will be one of the biggest loans in your lifetime, so it is important to regularly check that you are with the right lender.

Refinancing is not just about a lower interest rate that will reduce your repayments. It can also be a time to look at restructuring your mortgage to suit your current situation or to access some of your equity to utilize elsewhere.

In this current low interest rate environment, with the cash rate at an all-time low, now might be the time to look at what is around, and which lenders are the right fit for you.

AUSTRALIA CASH RATE

Whether your life circumstances have changed, or you just want a more competitive home loan, there are a few things you need to take into consideration before you think about refinancing.

A low interest rate is only part of the equation, you need to also look at your personal and financial situation. To make sure you are always in the right place at the right time, every few years you should review your current mortgage and make sure it is working for you.

A few things that might happen to get you moving now:

1. INTEREST RATE MOVEMENT – Given the low interest rate environment there could be a chance of future interest rate increases. This might be a good time to lock in a good rate.

2. YOUR CURRENT INTEREST RATE IS NOT COMPETITIVE WITH THE MARKET – Have a look at the current market interest rates, if your rate is higher, you could be paying more than you need to each month.

3. CHANGE IN YOUR FINANCIAL CIRCUMSTANCES – During times of hardship consolidating your debts into your mortgage is a way of managing cash flow and repayments. The right home loan can effectively structure you finances to pay off your debt sooner.

Remember to do your research before considering refinancing your home loan. It is important that you fully understand your personal and financial situation and your current loan arrangements. Also review what is happening in the market in terms of interest rates and what lenders are currently offering. Once you have done your research you will be in the right place to get the best possible deal for one on the most important investments of your life.