Refinancing a loan can take advantage of lower interest rates to bring down the overall cost of servicing a loan. But it’s not always the best, or the only, option.
There are many different factors borrowers need to consider when thinking about refinancing a loan. The first step is to speak to us about your needs and whether you can afford to service a different loan structure.
At this point, we will need to find out about your existing loan, repayments and the structure of the facility.
The current value of the property is also taken into consideration, so we will look at current data to give us a good indication of what the asset is worth.
Then we will have a look at the various loan options and figure out whether it’s worth it for you to refinance. It’s not usually worth it if it’s only going to save a couple of hundred dollars a year, taking into consideration exit and application fees. But if it’s going to save upward of $1000 a year, refinancing might be a sensible approach.
You might be interested in a refinance to access some of the equity in your home for renovations or a large purchase, or maybe you want to consolidate some other debts. We can help you work through your options and help you decide whether this is the right option for you.
Another key consideration is lenders’ mortgage insurance (LMI). If switching loans means you will need to pay LMI again, sometimes it’s not worth refinancing.
If you do decide to go down the refinancing path, working with us rather than going straight to a bank has advantages because we have access to loan options from scores of different lenders.
Blackwattle Finance can compare lots of different lenders and, if there is a better opportunity, we’re able to access it. We are always working to give you great advice that’s in your best interests.