Your loan should continue to work for you.
Refinancing means replacing your existing home loan with another loan, potentially with your existing lender or a different lender.
People consider refinancing for different reasons. The important question is whether changing your loan structure could make sense for your current circumstances and future plans.
Why might someone refinance?
There can be a number of reasons someone may consider refinancing.
To explore a different interest rate or loan structure
To review existing loan features
To consolidate certain debts where appropriate
To access equity for an appropriate purpose
Because their financial circumstances have changed
Your circumstances may have changed.
Your income, expenses, property value, financial commitments and long-term goals may all be different from when your existing loan was arranged.
A review can help determine whether your current loan remains appropriate for your circumstances.
Don't look at the rate alone.
A lower advertised rate does not automatically mean refinancing will be beneficial. Consider the total costs, fees, loan features, term and overall structure.
Review your existing loan.
Before making a change, it can be useful to understand what you currently have, including the remaining balance, interest rate, loan term, repayment structure and relevant features.
Making the decision.
Refinancing is ultimately a personal financial decision. The right option depends on your circumstances, objectives and the available alternatives.
A conversation with a finance professional can help you understand what options may be worth considering.
Wondering whether you should review your loan?
Talk to CapitalEdge about your current finance and what you're looking to achieve next.
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