Saving money and unlocking equity – those are two good reasons why you should consider refinancing your home loan. Before we start talking interest rates, it’s important to know if you can achieve one of those two things.
There are countless reasons why you might want to unlock equity in your home. These could include:
- Renovating or adding to your property
- Buying an investment property
- Paying off other debts or bills
- Financing your education or your child’s
- Paying for medical treatment
The first thing you need to consider is whether unlocking equity is the best way to fund your venture. While it’s a great way to access cash when you really need it, using home equity does mean you could pay more interest on your home loan over its life as well as increasing its length.
A personal loan is a more suitable option for smaller purchases and renovations.
Refinancing could save you money in a variety of ways by:
- Securing a lower rate and paying less interest
- Switching from a fixed to a variable interest rate so that you can make extra repayments without incurring fees and pay your loan off earlier
- Consolidating high interest debt such as credit cards or personal loans
- Locking in a fixed rate at an opportune time
If you would like to find out whether refinancing is suitable for you, our professional mortgage brokers are here to help you work out the details. Contact our team to learn more about your loan options.