One size doesn’t fit all
As we move from one phase in our life to another, so too do our priorities – and our financial needs.
There are no guarantees that a home loan that was suited to your needs a few years ago is still the best product for you today.
This could be down to changes in your personal situation but it could also be due to a change in policy from your lender – or simply that there are now better products on the market.
It is therefore well worth putting your present home loan under the microscope to ensure that it is still the best one on the market for your situation.
Time to review
On closer inspection you may find that you are better off with another lender. This could be down to the interest rate, the features, the offers, or even because you are looking to consolidate a number of debts.
Refinancing is relatively straightforward but there are a number of considerations you should address before taking the plunge.
Some loans may have break-costs associated with them – fixed rates in particular but also variable rate loans. But this need not necessarily be a barrier to bailing out of a loan that is no longer suitable as you could end up in a better overall financial position as a result of switching lenders.
If you have found a more competitive interest rate or are currently paying for features you do not use, this could also be another reason you may want to consider refinancing.
The process of refinancing is relatively simple in most cases. It essentially involves taking out a new loan and using part, or all of the funds, to pay out the existing loan.
While you can refinance with your current lender, if you are going to a new lender you will need to provide the same documentation that was required when you took out the original loan, as they will still need to assess your capacity to meet your repayments.
If you are thinking of putting your current loan through its paces, don’t hesitate to contact us as we can help make the process easier for you.
Not only can we assess whether you are still in the best product, we can also help you with the application process with a new lender if you decide that there is a better option out there. Feel free to give us a call if you would like to review your current product or even if you just have some questions on how the refinancing process works.
Source: Lending Services Victoria