There are a number of ways that you can consolidate your multiple existing debts. An option for you to consider is consolidating your debt by refinancing your home loan.
Consolidating debt by refinancing your home loan has multiple benefits, depending on your circumstances. Some reasons that you may look to do this include:
- It could help you manage a range of other short-term debt solutions that usually attract a higher interest rate. This could include existing Credit Card, Store Card or Personal Loan debts.
- The ease of managing a single loan gives you a regular repayment amount
- Unlocking equity at a lower rate could be a smarter way to fund renovations on your existing property
What's it going to cost me?
Before you decide that refinancing your home loan is the best way for you to consolidate your debts, you need to consider a number of costs that could arise during this process.
Depending on your situation, refinancing can attract a range of fees and other charges, including:
- Lender fees – This includes exit fees for your existing loan, establishment fees for your new loan, and any other applicable lender fees and charges
- Duties, taxes and other government levies that may be incurred. For example, in NSW, the amount of mortgage duty payable when refinancing a home loan may differ, depending on your circumstances.
You should factor in all of these costs when calculating whether refinancing works for you.
An Aussie Mortgage Broker can meet you to discuss your personal circumstances and help you identify the costs of refinancing your home loan. There's no obligation when meeting with an Aussie Mortgage Broker and it's free.
What are the steps to refinancing?
So how do you get started with refinancing? Aussie's expert Mortgage Brokers will help you evaluate your personal situation.
There is a range of information available, both within Aussie's website and offline, which can help you if you're looking to refinance. This includes tables that compare rates and products from different lenders and a range of calculators to help determine your borrowing power and repayment amounts, including Aussie's own Mortgage Calculator.
When you are ready to apply, or even if you have more questions before taking the next step, you should speak to an accredited Mortgage Broker.
Aussie's expert Mortgage Brokers will help you evaluate your personal situation, compare the features of hundreds of loans from up to 19 different lenders, and even help with all of the paperwork and other parts of the refinancing process.