Refinancing means to replace an existing loan with a new loan. The new loan will cover what you owe on the old one, and then have different terms for you to pay off. But slightly better terms on their own might cost you more in the long run; refinancing isn’t as straightforward as simply finding a better deal and switching over. There are often several fees that you have to pay to break off a loan, which can quickly eat up the potential savings. So, when is it a good idea to refinance, and when should you stick it out? Our team has the answers!
What are the advantages of refinancing?
We recommend staying with your current bank unless there is an important reason to change. Three reasons when we commonly recommend refinancing include:
- You want money to do a debt consolidation or renovation on your property and the bank denied the money to do so.
- Your bank wants a valuation on your property
- The bank is charging too much in fees
- The person you dealt with at your bank has left the company and you aren’t a good fit with their replacement.
Different banks will lend you a different amount depending on your income and how much debt you have. If refinancing can benefit your situation, we’ll look at other options to come up with a best fit solution.
What are the disadvantages of refinancing?
The biggest disadvantage of refinancing are the fees that are involved, which are different depending on your bank and loan type. You’ll likely have to pay a break fee if you have a fixed-term loan and the current interest rate is lower than it was when you took out the loan. As part of our research, we can find out what these fees are and what the current rates are. However, the quotes we get are only good for the day we get them, as rates can change daily. Also, many banks will want you to move accounts and bank with them as well, meaning you’ll need to set up and open new accounts.
When should I consider refinancing?
You should only consider refinancing when it will save you money in the long term, including the break costs and any applicable legal fees. Since refinancing can also involve moving banks, another thing to consider is if you’re happy with your current bank. If you don’t like your bank because of their app, internet banking, high fees, or service, and you can save money by refinancing, then it’s probably something you should consider.
To find out if refinancing is right for you, fill in the enquiry form.
HOW IT WORKS
To get the ball rolling we ask that you fill in the following form, it is super easy to complete and 100% obligation free.
Send us the form, then we will contact you to discuss your options.
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We had a tricky case, with only one wage and my wife expecting the second baby we’re really pushing the boundaries of what we could borrow. Brenda and the team went above and beyond to twist some arms and pull some strings and managed to get us what we thought was impossible and we’re now happily living in the lovely house we wanted so much. they really did an amazing job and were extremely fun friendly and professional. highly recommend them and they will help you get over any hurdle you have.
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Brenda and her team helped us out a few years back now and without her, we would not be where we are today. She puts in the hard yards for her clients.
For us, it not only helped with our dream home but also put our business on the map by being able to get a new build mortgage.
This woman is amazing! We would not be where are now without her! Brenda is honest and driven – highly recommend!! Love your work Brenda
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Brenda is amazing! She made it so simple and easy for me to sort my finances and find my perfect home
Brenda and the team are absolutely amazing. Just a fantastic bunch of ‘normal’ people who go the extra mile. Brenda is crack up, efficient and easy to talk to. Highly recommended.
Exceptional service. Brenda and her team took all the hassle out of our original lending and have made the whole rollover process so easy. It has made all the difference having someone we can trust and rely on to help us navigate the hard stuff.
Brenda is very approachable and easy to talk to. We found her extremely helpful and would recommend her to anyone needing her services.
I honestly can not thank the team enough for all the hard work they put into helping me get my home. Never once did they complain about my constant nagging calls or unusual questions or even the quick turn around. It didnt feel like a business transaction it felt like a family member helping me out. Really cant recommend this team enough. Want the best, go with the best.