Is It Time For You To Refinance Your Home Loan?
Updated: Nov 11, 2020
Considerably, now is one of the most unprecedented times in history for incredibly low cash and interest rates. Since the pandemic, the RBA has been trying its hardest to ensure a full economic recovery and support the creation of jobs across Australia. Following the recent cut to the cash rate, leading lenders have been following in the footsteps of this notion and decreasing their interest rates. There's no better time than now for people to refinance their home loan and source out the best mortgage rates and interest rates.
What Is Refinancing?
Refinancing or "refi" is a term to describe revising and/ or replacing the terms of an existing loan or mortgage. When people choose to refinance they are essentially moving their loan from one lender to another. It aims to improve your finances and consolidate debts more effectively. In our industry, it's common for people to refinance their home loans. People generally tend to refinance home loans and mortgages when there's a drop in interest rates, as we are seeing in this current economic environment.
How Does Refinancing Work?
The common goal of refinancing is to lower a person's interest rate. It usually happens when rates drop, as seen recently with the RBA's cash rate cut from 0.25% to 0.10%. To restructure your loan, your first step is to talk to a lender or a Finance Broker. They will help you to source out the best mortgage rates and interest rates that are available in the current economy to align with your financial circumstances. Some factors that will help you when switching to a different lender for a new loan include; having a good credit score and having at least 20% equity on your home loan. Equity refers to the worth of your home when subtracted by the current debts that you may have.
Why Do People Choose To Refinance?
People choose to refinance their loans for numerous different reasons. At REIF, we commonly assist people with refinancing to save money and put more back into their pocket. Refinancing is also a great method of helping clients to access equity to consolidate other debts and renovate their home. Clients also choose to refinance to get cash out for an investment property.
How We Help
People tend to think that refinancing is a complex process. However, it's really quite simple, especially when you have the right people to work with and support you. Our team of Finance Specialists at REIF do just that! We can help to review your current interest and mortgage rates to see if we can find a better one for you. Our specialists work with over 25 lenders and research the market in assisting clients with refinancing their home loans. We even sort out most of the paper work for you to eliminate stress.
Our Founder and CEO, David Chehade, explains how easy the process is when you choose our team of specialists to support you during this process. To see how easy it is, check out the video below:
If you want to refinance your current mortgage and interest rates, we can help! Whether it be to put more money back into your pocket, access your equity, or get cash out to put towards an investment property.
Reach out on the details below:
1300 130 932