Refinance home loans
Let the ITP professionals help you decide
If you suspect your loan repayments are too high, or if your financial circumstances have changed, now might be the time to think about home loan refinance. Especially with Australian interest rates so low, and the current fierce competition between loan products. But refinancing isn’t suitable for everyone. At ITP Home Loans we can go through your financial and life stage situation with you and help you decide yes or no.
What are your refinancing options?
Refinancing home loans involves either
Taking out a completely new home loan with a different lender or your existing lender; or
Varying a loan more suited your needs with your existing bank
Both options will have their pros and cons in regard to your particular situation.
When should I consider refinancing?
Home loan refinancing may be a good idea if:
- Your home loan repayments are too high because your lender isn’t staying competitive with the lower rates of other institutions
- There’s been a major change in your financial and/or personal circumstances and your current loan no longer suits your needs. For example, you may be expecting a baby, have a big wedding to pay for, or simply want extra cash for renovations, a holiday or to take advantage of an investment opportunity
- You want to switch to a fixed rate from a variable rate to lock in an interest rate
- You’ve got large credit card balance, or other debts, and want to consolidate your loan.
When isn’t refinancing suitable?
Refinancing your home loan probably isn’t a good idea if:
You’re considering selling this property reasonably soon
The fees associated with the changeover, E.g. prepayment and administration fees are too high to make a refinance worthwhile
You’ve got a good relationship with your existing lender. It mightn’t be worth jeopardising great service for a marginally lower rate
You’re a long way into your existing loan. Refinancing may cut your payments, but it’ll lengthen your repayment period, probably costing you more in the long run
You’ve accumulated a lot of other debt, E.g. on a credit card, and probably won’t get a lower rate
Your income stream is uncertain, E.g. your work is freelance
Whatever your circumstances, it’s a good idea to get a professional appraisal of your financial situation every couple of years. An ITP broker is always delighted to help you with a no obligation consultation, to make sure you’re in the most viable financial health possible. You can email us, or make an appointment to see an advisor face to face. Alternatively, give our helpful ITP Home Loans consultants a call today on 1300 387 487.