So, you are thinking of refinancing? Refinancing can be a serious financial decision with several factors to consider. Before you begin, it is a good idea to contact our experienced team at TLIH.………
What is refinancing?
A Home loan is generally a long-term proposition, but in some situations, it can be suitable to refinance your mortgage. Refinancing is moving from your existing loan to a new loan. The existing loan is paid off and replaced with the new one. When you refinance you can stay with the same the current lender or switch to a new one.
There are two key considerations when you are looking to refinance, “Why” and “How”. Here we examine both.
Why to refinance?
Shop around to save money and get a better deal!!!
Generally, people refinance to negotiate a better deal on their home loan to save money over time or to pay it off sooner.
The loan market is rapidly changing and the interest rates can vary significantly between lenders. Due to rapidly changing market, the loan that was highly competitive back in the day is now not the best in the market. Plus, some banks offer their lowest rates only to the new customers and it’s always a good idea to shop around to find out what the other lenders have got to offer. That’s where we come in the picture to help you choose the right product out of thousands available in the market.
Everyone wants to pay less on their mortgage, however, a mortgage with a lower interest rate may not have all the benefits of your existing loan. So be sure to carefully consider all the features, rates and your future goals, before opting for refinancing. Sometimes based on your current and future goals, staying with the same lender is in your benefit. That’s where our experienced brokers can help you making the right decision.
Mortgage Health check!!!
Life brings change and your mortgage needs to keep up: maybe you now have a partner, a young family, a rise or fall on your income, or have some extra cash in your hands. Lenders are constantly introducing new loan features and packages. And that’s where we help you so that you are not missing out on ways to make your home loan work harder for you with features such as:
Additional repayments- Any extra payments made on top of your regular payments will help you save money by reducing the interest costs and the loan term
Splitting your loan- You can split your loan into a fixed loan securing a rate for a certain time and a flexible variable loan.
Offset account - The offset account balance is subtracted from the principal amount before the interest is applied and save on interest costs.
Debt Consolidation!!!
Home loan interest rates are often lower than those for other forms of credit. So, debt consolidation could be a good choice if you are struggling to manage several debts or if you want to reduce monthly repayments and secure a lower overall interest rate and help you manage your cashflow. That’s where we come into the picture to assist you weigh up any potential costs such as penalties etc. against the potential savings to determine if debt consolidation is of any financial benefit to you.
Equity Release!!!
As you pay down your home loan or if the value of your property increases, you can access the equity to generate funds to use for several purposes like buying a new car, going on a holiday, renovations or buying new furniture or to invest in another property or any other personal reason.
That’s why get in touch with us to help you work out equity available in your property and make the best use of the equity to meet your financial goals.
Your loan reverts back to variable rate at the end of the fixed term, which can be higher than the standard variable rate offered by another lender. Due to rapidly changing market, your home loan may not be competitive anymore. This can be a good time to consider refinancing. especially if your goals and circumstances have changed.
Whatever the reason is, we will help you weigh up the pros and cons of refinancing and consider when refinancing might suit you and your situation.
How to refinance?
Weigh up the costs.………
It’s important to note that if you choose to refinance it can come with costs like discharge fees on your old loan and charges for your new one. These costs may vary between lenders, so you need to do the research and make sure refinancing is right for you.
Do your maths.………
Use our Online Calculators to work out what will be repayments on different loan amounts at different interest rates over different terms.
We can help.………
While refinancing can save you money, it may not be the right move for everyone. Take care and get advice on whether it’s the best route for you.
We can help establish whether refinance is a good option for you or not, how much you can borrow and the type of loan best for you. We can then gather information from different lenders and help assess the costs and benefits associated with each loan product to ensure that you get the most out of refinancing.………
Before taking any action talk to our experienced brokers, who can guide apply their knowledge and experience to help you select a suitable loan product matching your financial needs and circumstances and achieve the best outcome.
