Refinancing a home loan involves a borrower taking out a new home loan to replace their existing one.

The new loan may be with the same lender, or it may be with a different one. Borrowers should review their home loans whenever their own circumstances change, to take advantage of lower rates, or utilise a particular product to suit your needs, eg offset account or redraw facility.

Should I refinance my home?

There are pros and cons to refinancing.

Whether it is a good option depends on your individual circumstances and lending market conditions.

Reasons to refinance your homeloan…

• To take advantage of lower interest rates and reduce your minimum monthly repayments.
• To consolidate high interest debts and roll it into your home loan at a much cheaper interest rate – car loans, personal loans, tax debts
• To use the equity built up in your home over time and use that money to renovate, buy a car, go on a family holiday, or buy an investment property…
• Increase the loan term which will reduce your monthly repayments

Tax consideration when refinancing:

• Borrowers who refinance for an investment property can claim their refinancing costs as a tax deduction as well as the ongoing annual loan costs.

If you are interested in refinancing your home loan or would like to know more about how you can benefit from refinancing, book a complimentary home loan health check with us.

Why Refinance?

There are a number of good reasons to look at your options for refinancing. It can help you secure a better interest rate, switch between fixed and variable rates, access different home loan features, utilise the equity in your home or consolidate debt.