There are many reasons to consider refinancing your home loan.

The main reason to consider refinance is that your existing loan no longer suits your needs.

Every dollar counts. “A penny saved, is a penny earned” is the old saying. And it seemingly becomes more relevant each day. Shopping around is a good policy, regardless of what you are shopping for. But who has time to sift through all the different lenders and their products?

Saving money on your home loan repayments is only one of the reasons to refinance. You could also be considering an equity release, also known as a cash-out, where you can access funds tied up in your home. You can then use this money for investments, home improvements, or even a holiday or a new car.

Here are some of the reasons to consider a refinance:

Secure a lower interest rate

As with most things, shopping around may deliver cheaper rates. This will free up money from your repayments to spend in other areas, such as paying off your loan quicker, or on your family budget.

Access the equity in your home.

With capital growth and paying down your mortgage, you may have available cash that you could be using elsewhere, such as investments, home improvements, or even a holiday.

Want more certainty with a fixed rate

A fixed-rate loan can provide more budget certainty than a variable option. This could be useful for investors or people on fixed incomes.

Coming off a fixed-rate term

The roll-off rate on a fixed home loan at your current lender may no longer be competitive. You can always shop around to find a lower fixed or variable rate.

Switch to a different lender

Your current lender may not be meeting your needs any longer. Some lenders make their customers pay a ‘loyalty tax’, and don’t offer them the most competitive rates. Or you may be seeking products and services that the lender doesn’t offer.

Revert to a basic loan with few features

You should only pay for the features you are using. Often some products such as offset accounts and bundled credit cards attract higher interest rates and package fees. If they are not being used, then a basic loan may have lower rates.

Improve your loan features

Conversely, you may be missing out on savings that come from bundling multiple features into one home loan package. This type of loan may be more suitable for your needs.

How the refinance process works

A home loan refinance will require a new application with the selected lender. They will take over the existing loan from the incumbent lender. If you are seeking an equity release, then, depending on the loan amount and the use, the lender may need an explanation for what the funds will be used for. If you are planning to install a pool or extend the home, for example, depending on how much you plan to spend, a lender may require a fixed-price quote from a licensed builder. I can help navigate the process when you’re ready to begin.