Basic Guide to Home Loan Refinancing
A home loan is meant to support you with the initial purchase of your home followed by the ongoing ownership and maintenance of that home. It is also meant to give you access to money from available equity when you need it, fit comfortably within your budget, not impede your lifestyle and, be competitively priced.
Due to competition within the finance industry, fluctuating interest rates, an ever changing economy, political change and lifestyle demands, it is practically impossible for your home loan to remain up to speed for its full 25/30 year term. Therefore a correctional refinance of your home loan will more than likely be required at some stage.
A Correctional Refinance lets you alter or change your home loan to suit your changed financial requirements and personal needs, bringing you substantial benefits and improving your lifestyle opportunities.
To keep up to speed, it is essential that you regularly review the relationship between your lifestyle, personal goals, money and your home loan. And with the current instability of world economies creating funding issues for lenders and resulting interest rate uncertainty, it’s even more essential to have a home loan that’s absolutely suited to you and your lifestyle needs.
Want to make sure your home loan is the best one for you? A Community Best Mortgage & Money Assessment is a good place to start. With so many new and varying types of credit products and financial services available, we’d love to assess your situation and show you the products and services best suited to giving you a helping hand and/or improving your financial situation.
Call us now on 1300 448 911 or email us and we will contact you
How Correctional Refinance Works
You arrange a new home loan, and use some or all of the funds from the new home loan to pay out your existing loan. Funds for other purposes may also be drawn from the new home loan.
The new home loan is quite often arranged with a new lender, while some choose to refinance with their existing lender.
Whatever your decision, Community Best Home Loans can assist you with either.
- A better home loan with more suitable features – Upgrade
- More competitive interest rate – Better for You
- Switch interest rate to Variable, Fixed or a Combination – Peace of Mind
- Reduce your monthly repayment – More Cash in your Pocket
- Improve money management by consolidating all your debts into one loan
- Pay off your home loan quicker – Debt Free
- Home Improvements – Lifestyle
- Offset your savings interest against the home loan interest – Tax Minimisation
- All-in-One account – Save on Fees & Charges
- Raise Cash for a holiday, new car, business, investment – Better Lifestyle
- Consolidate all your financial accounts with the 1 institution – Savings & Bonuses
“I just want to be sure that my home loan is up to speed”
There’s nothing wrong with giving your home loan a “health check” even though it may appear to still be working well for you. There may be other home loans available at a lower cost that will produce the same if not a better result or with features that will simplify and improve your daily money management techniques.
A Community Best Mortgage & Money Assessment will help you decide whether a correctional refinance is most suited to your circumstances.
“I’m looking for a competitive home loan rate”
Finding a more competitive interest rate is the most dominant reason for refinancing and a great reason to refinance, however make sure that fees, charges and term interest don’t erode your gains.
“I’m concerned by the recent increases in the cost of living and the likelihood that there are more to come”
Refinancing your home loan may not be able to fix the price of food and goods but a correctional refinance to a home loan with a fixed interest rate or structured combination of interest rates will most certainly offer peace of mind and some certainty in the event that interest rates rise.
“If I consolidate my debts will there be more money left at the end of the week?”
Why not consolidate all your debts into one loan with one easy to manage monthly repayment? Home loan interest rates are usually much less than that of credit cards and personal loans so you could also make an impressive saving on interest.
A correctional refinance involving debt consolidation can make a lot of sense and leave you with more in your pocket at the end of the week?
“We’re thinking of renovating”
Want to renovate but don’t have the cash on hand? Want to carry out the renovation yourself? Refinance your home loan against an up to date valuation of your property and access any equity above the refinance amount.
If you feel that there may be insufficient equity to cover the cost of the renovations, give us a call and we will show you how to increase the amount of equity with a structured refinance.
“There have been some major changes in my life and things are just not the same!”
The older you are, the more you know and witness how life can change, sometimes unexpectedly. There are many life changing events like giving birth, marriage, separation, moving house, re-entering the workforce, changing employment, redundancy, promotion, an unexpected pay rise and starting your own business.
These are times when you should review your financial position and suitability of your home loan, and assess whether refinancing could produce a better, more suitable result for you.
Finding the home loan that suits you best
The home loan market doesn’t stand still. New home loan products and services are constantly being launched as lenders jostle for your business and cater for an ever changing consumer demand. Your Community Best Credit Advisor can compare and distinguish an array of home loans and services from over 45 lenders that ultimately make up our preferred lending panel, to see which ones will suit you best.
To discuss your options with a Community Best Credit Advisor, simply give us a call on 1300 448 911 or email us and we will contact you.
How to approach your homeloan refinance
You should start out with clear goals, whether they be, lower your repayments, free up cash, investment or improve your home. Be receptive to change, fresh ideas and the possibility of financial benefits gained from adopting a different approach to finance and money.
A good place to start is with a Community Best Mortgage & Money Assessment which will not only outline your needs and objectives, but also highlight beneficial changes along with the benefits that can be achieved with those changes.
To discuss your refinance options or to arrange a Mortgage & Money Assessment give us a call on 1300 448 911 or email us and we will contact you.