Time moves on and your life changes. So it makes sense to check in with your home loan to make sure it’s still right for you. But what changes to home loans and rates can be reasons to refinance?
Interest rate rises
In a rapidly changing mortgage market, a loan that was highly competitive back in the day, can lose its lustre. Plus, some banks save their lowest rates for new customers, and they’re not about to let you know if a competitor has a lower rate! Shopping around could see you score a better deal on your home loan if you’re seeing your interest rate slowly creep up.
Fixed term expiry
At the end of your fixed rate term, your loan reverts to a variable rate – which can be higher than the standard variable rate offered by that lender. This can be a good time to consider refinancing, after all, it’s likely the home loan market has changed since you fixed your home loan. Plus – you want to make sure that your home loan is right for you, particularly if your goals or circumstances have changed.
If you’re on a split loan – that is, you’ve split your home loan in two parts; one portion fixed and the other variable, then at the end of your fixed term your loan will continue on the variable interest rate. At this time it can be a good idea to consider refinancing if you want to re-fix part of your loan or reassess your home loan entirely.
Banks, building societies, lenders. There are a number of options when choosing your home loan and maybe the lender you’re with now isn’t quite cutting the mustard. That’s ok! Aussie has a panel of over 20 leading lenders from the big banks to smaller credit unions and lenders and can help you refinance to the lender that you feel suits you most.
Get the latest loan features
Life doesn’t stand still and neither does the home loan market. Lenders are constantly introducing new loan features and packages and maybe you’re missing out on ways to make your home loan work harder for you with features such as additional repayments, redraw, flexible rate options, portability or a repayment holiday. Refinancing is a good time to take stock of your life and make sure your home loan fits in with you – not the other way around.
There are many good reasons to consider refinancing and if you’re not sure if it’s right for you, a broker can explain your options and walk you through the process. Chat to us about refinancing, it might just save you thousands.