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Refinancing can help a borrower get a more competitive interest term and rate.  It is the process of paying out your original mortgage and replacing it with a new one.

When you first selected a mortgage, you probably spent a lot of time and effort to pick the right one.  At that time, it was likely the perfect fit for you.  However, as time passes circumstances change and as such, it is always a good to re-evaluate your mortgage to ensure that it is still the best option for you.

When you should consider refinancing

You feel your interest rate is no longer competitive

In today’s market, there is a wide range of lenders and financial products to choose from.  If you think you are no longer getting a competitive rate or think you are paying for features that aren’t being used, it could be time to shop around for a new loan.  When selecting a new loan and evaluating your current loan, it is important to make sure the price and features suit your needs.

You want to invest elsewhere

Refinancing can give you access to your homes equity which can be a great way to invest elsewhere.  Equity refers to the difference between your home’s value and the balance of your mortgage.  For example, if you have a loan of $300,000 secured against a home worth approximately $570,000, you would have equity of $270,000.  You could then use this not only for other financial investments like shares or another property, but also personal ones like your child’s education, home improvements or a holiday.

You want to consolidate credit card debts

If you have outstanding debts with high interest rates on a credit card or personal loan, refinancing can help consolidate them into one low interest loan like your mortgage.  While this is beneficial in helping save on interest payments, it can also mean that short term debts turn into long term ones.  In these situations, making extra repayments will help you get ahead with your home loan and debt consolidation.

Refinancing can be an extremely useful tool to help you manage your finances.  However, to ensure refinancing is done in the most effective way possible it is important to seek expert financial advice.

If you think refinancing could benefit you, fill out the form below to book an OBLIGATION FREE consultation with one of our fully independent Coronis Mortgage Brokers today.

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