Refinance
Unlock the Full Potential of Your Home's Equity with Refinancing
Whether you are looking to reduce your interest rate, monthly repayment, consolidate debt or purchase an investment, there are a number of reasons to refinance your existing home loan. At Finance Brokers Tasmania, we specialise in helping Tasmanian homeowners, like yourself, unlock the equity you have built up in your home through smart refinancing solutions.
Why refinance your home loan?
Choosing to refinance your home loan can be a decision you make for a number of reasons. Switching your home loan can save you money or help you to achieve another important life goal. Here's why you should consider refinancing your home loan:
Lower Interest Rates
Your current lender may be charging you a higher interest rate than new customers, often referred to as a 'loyalty tax'. This is why we recommend that you review your existing home loan every 2-3 years. Securing a lower interest rate can potentially save your thousands over the life of your loan.
You should be able to find out your current interest rate easily. Check your latest home loan bank statement or via your online banking account. Once you know your rate, give us a call at Finance Brokers Tasmania and we will do everything possible to ensure you’re getting the best deal available.
Consolidate Debt
Refinancing your existing home loan can be a smart financial move. Refinancing allows you to take control of your finances and reduce the strain on your monthly budget. Consider consolidating high interest debt such as credit cards, unsecured personal loans and store accounts into your home loan. By simplifying your finances, you will only need to make one repayment and the interest rate will generally be lower.
Access the Equity in your home
Tap into the equity you have built up in your home to:
- make home improvements.
- finance the purchase of large ticket items such as a car, caravan or even an overseas trip.
- purchase an investment property.
- assist your children buy their first home.
To find out more, check out our blog Refinancing to make the most from the equity in your home.
Switch Loan Types
There are many ways to build your home loan. Talk to your broker about:
- Variable Rates
- Fixed Rates
- Split Loans
- Mortgage Offset and Redraw
Refinancing Calculator
Use our loan comparison calculator to find out how much you could save by refinancing your home loan.
When should I consider refinancing my home loan?
At Finance Brokers Tasmania, we strongly recommend completing a review of your current home loan every 2-3 years. That way you know that your existing loan is still competitive and the right choice for your financial needs and future goals. Our mortgage brokers will review your current loans with the best available on the market and we will only recommend refinancing if we can find a home loan that improves on your existing loan while still meeting your best interests.
Frequently Asked Questions
Should I refinance to the cheapest interest rate?
When refinancing, the home loan with the lowest interest rate may not always be the best option. Our mortgage brokers will review your overall financial goals and recommend a loan that will meet all your needs.
How can I refinance to help my child into their first home?
Known as a parental guarantee, there are a few ways you can support your child into a home sooner.
- Refinance your home to provide a cash boost to their own deposit.
- Use the equity in your home as additional security on their home loan application.
It is important to weigh up the risks and disadvantages of providing a parental guarantee. To find out more, check out our blog 'Get into your first home sooner with a parental guarantee' and then speak with one of our knowledgeable mortgage brokers.
Does refinancing always mean a change in lenders?
Not always. If you are happy with your current lender, and you want to top up your existing home loan, then you will have options available. You can refinance the entire loan amount or take out an additional loan for the top up amount.
Our mortgage brokers can talk you through the best loan structure to meet your needs.
Should I refinance to get a cash back offer?
When considering refinancing to receive a cashback, you should consider the overall cost of the loan.
- Does the loan have a competitive interest rate?
- Does the cost of the fees to refinance outweigh the benefit of refinancing?
- Does the loan have the facilities I need?
Do I have to pay fees to refinance my home loan?
Fees will vary between lenders, but you may have to pay:
- Establishment costs - also known as an application fee,
- Valuation Fee
- A discharge fee - payable to your existing lender to move the mortgage.
- Lenders Mortgage Insurance (LMI) - don't get caught paying this again. If the loan to value ratio (LVR) is over 80%, you may be required to pay LMI again. Always talk to your mortgage broker before making the decision to refinance.
Thank you, Lance and the team, at Finance Brokers Tasmania! It was a pleasure working with you with our recent loan application and refinancing! Made the whole process far less daunting!
