Refinancing your home loan can be a fantastic way to save money, lower your repayments, or achieve your investment or lifestyle goals. But how do you know if it’s the right time?
At What If We Finance, we make home loan refinancing simple and stress-free. Our focus is all about ensuring you achieve what you need. Let’s explore when refinancing makes sense and how much you could save!
What Is Home Loan Refinancing?
Home loan refinancing is the process of replacing your current mortgage with a new one. This might involve switching to a different lender or renegotiating a better deal with your existing lender.
The goal of refinancing is to save money, reduce repayments, or adjust your loan to help you achieve what’s most important to you – whether that’s freeing up cash, pursuing investment opportunities, or simplifying your finances.
When Should You Refinance Your Home Loan?
There are several scenarios where refinancing your home loan makes sense. Here are some key signs it might be time to consider refinancing:
1. Interest Rates Have Changed
When interest rates shift, it’s worth reviewing your current home loan. Changes in rates can significantly impact your repayments, and refinancing could help you secure a better deal.
For example:
•A $630,000 mortgage at 6.65% interest costs $4,041 per month in repayments.
•Refinancing to 6.14% reduces repayments to $3,833 per month – saving you $208 per month or $2,496 per year.
Over time, those savings add up:
•3 years: $7,488 saved
•5 years: $12,480 saved
•10 years: $24,960 saved
Even a small difference in interest rates can lead to significant savings over the life of your loan.
2. Your Fixed Rate Is About to Expire
When your fixed-rate term ends, your lender might automatically roll you onto a higher variable rate. Refinancing gives you the chance to lock in a better deal and avoid unnecessary increases in your repayments.
3. Your Financial Situation Has Changed
If your income, expenses, or financial goals have shifted, refinancing can help you adjust your loan to better suit your current needs:
•If you’re earning more, refinancing could help you focus on achieving investment or lifestyle goals, like buying another property or renovating your home.
•If you’re managing other debts, refinancing can consolidate those into one lower monthly repayment, simplifying your finances.
4. It’s Been a While Since You Reviewed Your Loan
If it’s been a couple of years since you last looked at your mortgage, you might be missing out on a better deal. A home loan health check can uncover whether refinancing could save you money or help you achieve what you need.
How What If We Finance Can Help
At What If We Finance, we make refinancing as easy as possible. Here’s how we help:
•Home Loan Health Check: We’ll review your current loan and compare it to what’s available to see if there’s a better option.
•Access to Multiple Lenders: We work with a wide range of lenders, so you have plenty of options.
•All About You: Our recommendations are focused on ensuring you achieve your goals, whether it’s saving money, reducing repayments, or simplifying your finances.
•Stress-Free Process: From paperwork to liaising with lenders, we handle it all so you don’t have to.
Real Savings Through Refinancing
Refinancing isn’t just about getting a better interest rate – it’s about saving money and making your home loan work for you.
Here’s how refinancing could help:
•Lower Rates: Switching from 6.65% to 6.14% on a $630,000 loan saves $2,496 per year.
•Cutting Fees: Moving to a loan with no annual fees could save an additional $300–$400 per year.
•Debt Consolidation: Combining high-interest debts into your home loan could reduce your overall repayments and make your budget easier to manage.
Ready to Take Control of Your Home Loan?
Refinancing doesn’t have to be complicated, and it can make a big difference to your finances. At What If We Finance, we’ll guide you every step of the way, focusing on ensuring you achieve what you need.
Start with a free home loan health check. Contact us today and let’s make your home loan work harder for you!
About the Author
Spiro Kolokithas is an award-winning mortgage broker and the founder of What If We Finance. Driven by a passion for helping customers achieve their financial goals, Spiro ensures every client receives personalised advice and a stress-free experience.
