Why should you refinance?
There are a number of good reasons to look at your options for home loan refinancing. It could help you: secure a better interest rate, switch between fixed and variable rates, access different loan features, access the equity in your property to fund other goals or consolidate debt.
What is home equity and why it matters to you?
You may have heard the term home equity, but what does it really mean?
Home equity: is simply the difference between your property’s current value and the balance owing on your loan. For example, if your home is worth $500,000 and your loan is $300,000, your equity is $200,000*.
Usable equity: is the portion of your home’s equity that you can actually borrow. It’s your home’s value minus what you owe, minus the buffer lenders keep for safety to manage risk.
Some homeowners ‘access equity’ to:
- Renovate or upgrade their home
- Buy an investment property
- Consolidate debts into one manageable repayment
- Fund big life expenses
Refinancing to access home equity
Refinancing to access equity lets you tap into your home’s value. With the help of your mortgage broker, you could adjust your current loan or take out a new one for more than you owe – giving you extra funds to renovate, invest, or fund your next big goal.
How it works:
Property assessment
Borrowing capacity
Loan approval
How does debt consolidation work?
Debt consolidation, it might sound complicated, but simply put, it’s combining your debts into one manageable payment.
This could include debts like:
- Home loan
- Credit card
- Personal loan
- Car loan
By consolidating your debts, you could:
- Keep track of fewer monthly payments
- Potentially lower your interest rate
- Make a clear plan to pay off debt faster
- Save money on your repayments
It’s not about taking on more debt, it’s about simplifying your finances and making life a little easier. If you’re curious, we can help you explore options right for your situation.
