Home Refinancing Sydney

Refinancing involves paying out your current home loan by taking out a new loan often on more favourable terms. This can be with your existing lender or a different lender.

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How refinancing works

Refinancing means taking out a new loan in order to pay out your current loan. This can be done through your existing lender, or a new one. Looking into your options may save you money in the long run. However, this isn’t guaranteed, which is why your Made For You Finance broker can break everything down to help make sure you end up with the best deal. By working with us you’ll gain access to hundreds of loans. Our brokers always put you first, assessing your unique needs to design the right solution for you.

6 reasons why you might want to consider refinancing

Get a better home loan deal

A key reason why home owners choose to refinance is to secure a better deal. Refinancing generally comes with some costs, so it’s vital that you weigh up the savings from refinancing against the expense involved.

Reduce your home loan repayments

A lower interest rate means lower repayments. In addition to resetting the loan term, the loan period starts from zero again which means your repayments will be lower.

Access equity and leverage into other investments

Borrowing against the equity in your home means that you are effectively using the bank’s money (secured against your home) to tap into new investment opportunities. When you release the equity in your home, you don’t need to wait to save a deposit for the next property (e.g. an investment property) you want to purchase.

Renovate or extend your home

One of the cheapest forms of interest is using your home loan. If cash isn’t an option and you’ve been making advance payments on your loan you may be able to redraw that money to use for your home renovation. Although, you can only redraw up to the amount of additional payments you’ve made, which might not be enough for your planned renovation.

Consolidate unsecured debts

Refinancing your home loan could also let you streamline your debt, and potentially reduce the overall interest you’re paying on multiple debts by the process of ‘debt consolidation’. This means folding several high interest debts into one lower rate debt, which could be your home loan. Doing this may reduce your total monthly repayments.

Fix your interest rate for certainty of repayments

If you’d prefer the certainty that repayments will stay the same for some time, you may want to switch to a fixed rate loan. Alternatively, you may decide that you’d like to take advantage of a lower variable rate if you are prepared to accept the risk that interest rates may rise in future.

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Could refinancing be right for you? Talk to us today