Refinancing is the process of transferring your loan from one type to another with a different interest rate or set of terms, either with your current lender or with a new lender. Refinancing gives borrowers more financial freedom and allows them to adjust their loans to reflect their ever-changing life circumstances.
Is refinancing a wise idea?
Only you can determine what is best for you. However, if you’re considering switching lenders, one or more of these could be useful.
Reduced Interest Rate
The most common reason for refinancing is to take advantage of a reduced interest rate. Reducing your monthly payments can relieve financial stress while also freeing up funds for other savings and spending goals.
Reduced loan term
You can choose to refinance to pay off the loan faster and reduce the overall term. While your monthly payment will usually increase if the interest rate is lower, you may be able to shorten the term of your loan and pay less interest over time.
Change to a different loan type
You can refinance your loan to change the type of loan you have. you might move from a variable to a fixed-rate loan to provide you with certainty while you need it.
Consolidate debt and gain access to equity
Refinancing can assist you in acquiring much-needed finances. If you have equity in your house, you can refinance and borrow money to cover large bills.
Refinancing could be the best solution for you
Consider whether refinancing is best for you by speaking with our experts about our home loan options or getting an independent cost-benefit analysis.
FAQs
Got questions? Find answers to some of the most commonly asked questions about our financial solutions, processes, and services to help you make informed decisions.
LMI is a third-party insurance premium payable by you as the borrower, to protect the lender against the potential loss of money if the borrower is unable to repay the home loan. Generally, an application with a Loan-to-Value Ratio (LVR) of 80% or more may result in the borrower having to pay Lender’s Mortgage Insurance.
Extra payment is an excellent feature of a good mortgage deal. Here, your lender lets you make lump-sum additional payments along with your regular monthly payment. Making extra payments allows you to shorten the length of time you are paying your mortgage. Since your balance is being paid off faster, you will also have fewer total payments to make, thus lowering your interest. At Reliiance Financial Solutions, we can help you find the most suitable mortgage deal for you. We have a range of lenders that allow you to make as many extra repayments as you want, whenever you want, without attracting any penalties.
Stamp Duty is a government tax imposed on contracts, with the amount usually calculated as a percentage of the contract value. In layman’s terms, it is the tax charged for your legal documents to be ‘stamped’.
If you are planning to buy a property, it’s crucial to factor your State’s Stamp Duty into your budget.Chances are, based on your circumstances and state of domicile, you might be able to obtain a stamp duty exemption, or concessions (discount) against the purchase of your first home. Stamp duty laws get changed often, so be sure to check your State Government’s website for the most up-to-date information.
Did you know that some lenders would allow you to cash out any extra repayment you made whenever you need the money? You read that right. This useful mortgage feature is called “redraw facility”. You can withdraw any extra repayments or lump sum payments you make over the life of the loan. At Reliiance Financial Solutions, we will explain all mortgage products to you, including those which allow you to the redraw option.
Testimonials
Discover how we’ve helped our clients navigate their financial journeys with personalized solutions. Read their stories of success and empowerment below.
A 5-STAR RATED FINANCIAL SOLUTIONS PROVIDER BY OUR CLIENTS
At Reliiance Financial Solutions, we have been privileged to have worked with hundreds of remarkable individuals and families.
Very few things come close to receiving their genuine appreciation of our services. All we can say in return is – the pleasure was all ours.
It is also our pleasure to share some client testimonials with you. Please click on Video Testimonials to view them all. Use the buttons at the bottom of the screen to navigate through the videos.
