If you’ve had your first home loan for a wee while, it’s likely that you’ve been curious about whether it is still the right fit for you. The market is constantly changing, with new and unique loans offered all over the place it’s kind of hard not to take a peek on the other side. Because the grass is always greener, right?
Your life can be made much easier by refinancing an old and tired mortgage
The refinancing loan is certainly catching on, as figures from CoreLogic RP Data reveal that in August 2015 alone, the value of established dwelling refinances was around $6.4 billion – this represents a year-on-year growth of 26.7 per cent!
You should always keep on top of your mortgage and determine whether it is still a good fit for your circumstances. Regardless of whether you’re on your first home loan or a property investment loan, your life can be made much easier by refinancing an old and tired mortgage.
Here are a few reasons why you might consider a refinancing loan:
The cash rate has changed
The official cash rate essentially dictates how much interest you will pay on your home loan. The current historically low interest rate has meant that many property buyers have been receiving positive responses to the signature question “how much can I borrow?”
In fact, according to the Reserve Bank of Australia the cash rate has plummeted 2.25 per cent since February 2012, which means you could be paying substantially more interest if you have a fixed-interest rate mortgage that is a few years old.
A refinancing loan will allow you to take advantage of the most recent rates.
Life has its ups and downs, however, your mortgage will most likely remain impassive and steady – unless you consider refinancing of course!
For example, if you get a promotion at work or win the community raffle (you never know), you may want to increase your repayments to achieve financial freedom faster. This could become a problem if your current financial package doesn’t allow you to increase your repayments.
Conversely, if you suddenly find yourself short of money, refinancing may allow you to reduce your monthly mortgage obligations.
You would like access to more unique loans
Home loans shouldn’t be a one-size fits-all affair, as every household has individual needs and desires. A refinancing loan has the ability to provide you with substantial savings by being better suited to your needs.
If you would like to gain access to a range of unique mortgage solutions that are tailored to your separate situation, you should get in touch with the team at Mortgageport.