For most of us, our home is the biggest investment we’ll ever make. Outside of school or the workplace, it’s also the space where we spend most of our waking hours. Refinancing your home and extending your mortgage by just $20,000 can give you a chance to make your home much more comfortable for your family and guests. And you can also make it a project that may add value if you decide to sell in years to come.
Many loans that allow extra payments will also allow that capital to be redrawn. This means you can benefit from putting more money into your loan but still access the funds if you need them down the track. To avoid complications, your lender won’t let you take out any more than the extra you’ve put in.
The main reasons for homeowners to refinance are to free up some cash, possibly lower repayments and get more flexibility with the loan.
I keep seeing some really low interest rates advertised and wondered if it’s too soon to refinance? How often should I review my home loan?
Big life events – marriage, children, travel – usually start with big questions. These questions can help us avoid potentially costly mistakes.
Many lenders are making out of cycle home loan interest rate increases at the moment to meet new regulatory demands and to cover their own rising costs of borrowing money. Only customers on a fixed interest rate have been protected from these rate rises.
Choose a licensed broker. Unlicensed brokers are illegal operators which means you mightn’t be protected if things go wrong. You can check if a broker is licensed by searching ASIC Connect’s Professional Registers.
Each Sunday John Symond answers one of your questions – this Sunday we’re looking at how often you should consider refinancing your home loan.
Each Sunday John Symond answers one of your questions – this Sunday we’re looking at how to fund a backyard swimming pool if you don’t have the cash at the ready.
Each Sunday John Symond answers one of your questions – this Sunday we’re looking at why it’s important to get a second opinion on your home loan.