Refinancing your mortgage
- AFG
- Apr 12, 2022
- 2 min read
Home owners are a diverse group of people, and that means there is also a whole variety of reasons why you may be thinking about refinancing.
What's involved in refinancing a home loan?
Replacing your current home lain with a new one
Receiving additional or better features
Exit fees and borrowing costs to consider
Offering savings on interest
Learn Why and How to Refinance
Refinancing refers to the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender.
With the lowest rates ever in the market, now is a great time to assess your home loan to ensure it's the right one for you.
Accessing Equity to Refinance
If you’ve been paying off your home loan for a number of years, you may have built up equity that is available to access. Home equity is the difference between your current property value and your remaining debt. In order to understand how much equity you have, you’ll need to get a property valuation, and then you’ll be able to access your available equity by refinancing your loan.
Refinancing is often a strategy used to free up the equity you have in your current home in order to fund purchases or lifestyle goals. You can refinance your home loan and use your equity for various reasons, including home improvements, car loans, a holiday and even to purchase an investment property.
Benefits of refinancing
There can be some fantastic benefits in refinancing your home loan - just make sure you also weigh up the different expenses outlined below that can be involved in the transfer to make sure it’s the right choice for you.
Why refinancing a home loan can be a sensible step
If you’re keen to secure a better interest rate or enjoy more loan features, refinancing your home loan can be the solution. Refinancing is also an opportunity to get control of debt or tap into any home equity you’ve built up.
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