Refinancing refers to the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender. With the lowest rates ever in the market, now is a great time to assess your home loan to ensure it's the right one for you.
A refinanced loan is the one where the major goal is to pay less interest over the life of the loan. Borrowers may tend to change the duration of the loan and the rates of interest during that period. Interest rates can be switched from fixed rates to adjustable ones and vice versa.
The common way adopted for refinancing is rate-and-term. In this type of refinancing, the original debt is paid off and a new loan is given on different terms with the same loan amount.
Lower Interest Rates - When the interest rates are historically low, you can benefit from refinancing your existing home loan to save on your repayments over the term of your loan. This can mean you are less affected by sudden economic shocks or fluctuating rates.
Consolidating Debt - At the same time you’re paying off your mortgage, you might also have a couple of other debts weighing on your mind, like repaying personal loans or your credit card balance which can be consolidated into your existing home loan.
Contact us for more information on refinancing your home loan, so we can provide you with a new and improved personalised home loan.