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Refinancing

 

In the past, most people with a home loan continued with it until it was paid off. These days people refinance their home loan much more frequently. The average duration of a home loan in Australia now is just 4-5 years. Here are some of the reasons people refinance their home loan:

 

Lower your interest rate

Do you want to get a better deal? How does your current interest rate compare? Refinancing could save you a significant amount each year.

 

More flexibility

Are you able to make extra repayments or access some of the equity in your home without being hit by extra charges? Refinancing your home loan could give you increased flexibility.

 

Access your home equity

Has the value of your home increased over recent years? Refinancing your home loan may allow you to access extra equity. Buying an investment property, a share portfolio, renovating your home or starting a business could be well within your reach.

 

Switch between variable and fixed 

With a variable interest rate you can save money if interest rates fall but you must be aware of the risk of interest rates rising. Locking into a fixed interest rate provides certainty, allowing for easier budgeting as well as protecting you from potential rising interest rates.

 

Consolidate your debts

Do you have a home loan as well as a car loan, personal loan or credit card debt? Refinancing your home loan to consolidate all your debts into one easy repayment could simplify your finances and save you money.

 

Things to consider

Before refinancing, it is important to identify both your short and long term financial goals. For example you may want to reduce your monthly repayments or you may want to pay off your home loan and get out of debt faster.

 

It is important to consider the cost of refinancing. When you refinance, you are terminating your current loan earlier than scheduled and replacing it with a new one. There will be mortgage discharge and registration fees and you should also consider whether there are exit fees or early repayment charges on the existing loan. The other charges you paid when you took out your loan(s) may have to be paid again (e.g. application and settlement fees, valuation fees, registration of the new mortgage and stamp duty, where applicable).

 

If the savings you expect from refinancing exceed the costs associated with it then it makes sense to refinance your loan(s). Stanley Finance will help you weigh up your decision and find a new loan to suit your situation.

 

Wherever you are across Australia, Stanley Finance can help you refinance to the best loan package for your situation.

 

If you'd like to save time and money by refinancing your home or investment loan(s), contact us today. Stanley Finance can meet you at your home, office or another suitable location at a time convenient to you.

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