6 reasons why you should refinance your mortgage
First of all, let’s chat about what refinancing is, shall we?
In simple no fluff language, refinancing is about moving your home loan from one lender to another.
You might be like, ahhh… but why the heck would I wanna do that Team Lenny? Great question. Sure there may be a lil’ bitta paperwork involved, but there are a LOT of pro’s that may make it all worth your while.
Let’s take the microscope to some of the most common reasons you might consider refinancing and how your broker (that's us!) can help.
1. You want a better deal
And you deserve a better deal darn it!
The very best deal you got 5 years ago might not be the most competitive in today's market, and similarly with the changes recently from the Reserve Bank (and rise in interest rates), if you had of fixed your home loan whilst it was at a sweet rate, chances are, by the time it’s “unfixed” you may be looking at a higher rate - so let’s check in on how we can get you the best offer NOW.
2. You want a better experience
Sitting on hold for hours. No follow-ups on enquiries. No return on phone calls. Getting ghosted entirely.
If you’re not happy with the service your current bank is offering then it might be time to see what else is out there, and pssstt.. get a broker (hi, that’s us), because at no cost to you (we get paid by the banks!) we know exactly who to call to get an answer. We’ve got them on speed dial.
3. You want to unlock equity
And we’ve got the keys.
There’s a whole host of reasons you might want to access the equity in your home.
Time to finally get that pool built? Want to renovate and need to access some cash? Or maybe you’re even thinking about using the equity in your home to fund the purchase of an investment property.
Refinancing your home can help you access that equity at a much lower interest rate than a traditional loan and have you on your path sooner.
4. To pay off your loan sooner
Looking to say adios to that home loan sooner? Hi 5 to you!
Did you know you can refinance your mortgage to a shorter term to have you pay it off even sooner? This might be the option for you if you are currently in a mortgage that has restrictions around additional repayments and your position has changed to allow you to make greater payments each month.
5. To change the type of mortgage you have
Got a fixed-rate mortgage and looking for more flexibility?
Got a flexible mortgage and looking for some more surety?
Let’s refinance! You can change up the type of mortgage you have by refinancing or even split it into part fixed, and part variable.
6. Change of circumstances
Life happens to all of us. If you’ve been through a separation or other monumental life shift, there’s every chance you’ll need to refinance your mortgage.
A broker can help you to make this transition as seamless and stress free as possible.
When should I see a mortgage broker?
There’s no strict timeline, but we’d encourage you to book in for an informal chat when you first start thinking about refinancing. We can work together to map out the best resolution and look at your timeline to make the process work for you.
Refinancing might feel like a daunting task that keeps finding itself at the bottom of your to-do pile.
It doesn’t have to be.
Because Lenny are your go-to mavericks for mortgages and we do all the work for you. There’s no need for you to shop around or spend 75 hours on the phone listening to hold music.
Book in a complimentary 15-minute virtual cuppa to see how much you can save, and let’s get you more cashola back in your account.