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If you’ve had your home loan for more than a couple of years, your circumstances and needs may have changed.

Reviewing your home loan is a good way to check it’s meeting your needs and helping you to reach your financial goals.

Here are four reasons to consider refinancing your home loan:

You’re worried about rising interest rates

With the Reserve Bank of Australia expected to continue to raise interest rates*, it’s a good time to assess if your current home loan is working for you and if there are any better deals on the market.

You could consider a fixed interest rate for a portion of your loan so your repayments will stay the same regardless of any rate rises. Knowing exactly what your repayments are can help you to get the most out of your budget or increase your savings.

You want to renovate or buy an investment property

If you’re planning a renovation, refinancing can help you to free up the equity in your home to fund your goals.

If your property has increased in value, you may be able to borrow against the equity in your home to fund renovations or use the equity instead of a cash deposit for an investment property.

Our bcu home lenders can help you to determine your available equity and work out the best option for your circumstances.

Even if you’re still in the planning and dreaming phase, refinancing your current home loan could help you to save while you’re working out the details of your next move.

You have a savings goal

Whether you’re saving for a holiday, a new car or just want to build your savings balance, refinancing your home loan can help make your savings work harder.

Choosing a home loan with an offset account can be a good way to reduce the interest you pay on your home loan. Every dollar in your offset account “offsets” the balance of your loan, which reduces the amount of interest you pay each month.

These saving add up over time and you could end up paying off your home loan faster and saving a significant amount in interest over the life of the loan.

You can withdraw your savings from the offset account at any time once you reach your goal.

You want to consolidate your debts

If you have multiple debts, bringing all your loans together can simplify your finances.

Refinancing your home loan to cover all of your debts means you’ll have a single repayment and one interest rate.

Your home loan rate may be lower than the interest rates of other debts, such as credit cards and car loans, so you could end up with a smaller total repayment amount.

While refinancing to consolidate your debts is likely to save you money in the short term, you could end up paying more in the long run. Consider putting what you save on interest or fees towards extra repayments to pay off your new home loan faster.

If you’re thinking about refinancing, talk to our experienced home lending specialist today to find out the best option for you.


*Source: Reserve Bank of Australia


Important information

Information on this website is general and has been prepared without taking into account your objectives, financial situation or needs. You should consider whether this information is suitable for your objectives, financial situation and needs before acting on the information provided.