Is Your Home Loan Still Right for You?
What to Consider When it Comes to Refinancing.
Do you know how well your current loan stacks up? Because since your home loan was approved, chances are that interest rates may have moved and, no doubt, parts of your life have too. That’s why it’s important to consider whether it’s time to refinance your loan.
Ask yourself these questions:
Has the official cash rate changed since your current loan settled? Has the rate your lender is charging you changed? What about your current fees and charges, are these a little high? Chances are the market has changed also, and how has this impacted you?
Remember, new products designed to attract borrowers are always being introduced into the market, and lending appetites are an ever-moving feast. Let’s not forget that things have probably changed in your life since you took out the mortgage. Your income may have changed, as well as your expenses, and your financial goals could also be different. Even though most loans are around 30 years in length, you may be surprised to hear that Australians often change their home loan every 4 to 5 years as they refinance. Refinancing is a chance to look at what’s available in the market and see whether your current loan is still the right one for you. If it’s not, it may be time to refinance.
If you are looking to switch, we are happy to take you through the key things you may want to consider.