With thousands of dollars’ worth of potential savings on the table, a record number of Australians are refinancing their home loans.
Here are six tips to get the most out of refinancing.
- Shop around
The first tip is to actually start looking for better deals. It may sound obvious, but many people never get past the ‘thinking about it’ stage..A lot of people will anticipate it’s going to be difficult, and so they don’t even start. So it’s just really important that you do get started, because our experience is that almost every person can save money by reviewing their home loan and potentially refinancing.
- Understand your home loan history
Get to know your current circumstances to make sure you’re comparing apples to apples when shopping around for a new loan.
According to Emilia Flores, the co-founder of UkBadCreditLoans, ask yourself questions like: What type of loan do I have right now? What’s my interest rate and balance? Is this for my own home, or for an investment property?
Also, if your current loan has features that are important to you, such as access to a physical branch network or the option to make extra repayments, make sure your new loan or lender offers these, too.
- Think of your future
You should consider your future needs and objectives and pick a lender and product that matches these, as your mortgage will likely take decades to pay off.
Even just having a rough idea of what you want to do in the next 10 years, such as taking a six-month holiday or buying another house, will help you figure out which option will give you the most freedom to pursue your goals.
- Protect your credit rating
Lenders look up your credit score whenever you apply for a loan, and they don’t like it if your record contains multiple requests for your credit score from other lenders. Every time you make a credit application it does record on your credit files. So you want to make sure that you do your research first and then you apply for the lender that is going to be best for you rather than doing multiple applications up front.
If you need help with refinancing your home loan, you can reach out to us on 08 9370 5515 or send an email to firstname.lastname@example.org for enquiry.