There are many benefits of refinancing your home loan in today’s market. Here are some of the best reasons why refinancing could be the right choice for you.
Lower interest rates or reduced fees
Just because your rate was great ten years ago, doesn’t mean it’s the best you could receive today. By refinancing your home loan, you may be able to access lower fixed rates that allow you to save thousands over the course of your mortgage.
Increased borrowing power
If you’ve been paying off a mortgage for several years without penalties, you’ve built up a favourable credit history and likely some equity in your property. Lenders are usually willing to lend up to 80 percent of your home’s value, and you can put that money towards the things that matter.
Reduction in repayments
Depending on when you got your home loan, the repayment schedule may not fit your current lifestyle or financial situation as well as you would like. By refinancing, you can achieve a more favourable repayment cost or schedule to suit your life as it is now, not as it was ten years ago!
Consolidation of loans
Keeping track of a car loan, home loan and personal loan can be difficult. Refinancing your home loan allows you to consolidate your different loans into one place, so you can keep track of your repayments and schedule from one place.