What does it mean to refinance a mortgage?
The term describes the process of reorganising your loan to ensure that you’ve got the right terms for your individual situation. It involves transferring your home loan to a different lender to take advantage of conditions that are better suited for your needs.
Anyone with a mortgage can refinance their home loan. If your loan isn’t working as well as it could be for you, it’s worth taking the time to see what alternatives are out there.
The team at Legendary Mortgages & Insurances can help you make the adjustments you need to keep you confidently on track to reach your financial goals. Talk to us to discuss your situation and see whether your mortgage is the right one for your needs. We’ll look at the current interest rates you’re paying, your loan’s structure, your income and your goals.
Our mortgage brokers can advise you on whether there are better alternatives available. Refinancing your mortgage could help you save thousands in interest payments. It’s time to say goodbye to debt faster than you could have imagined.
Refinancing a mortgage involves transferring your home loan from one bank or financial provider to another. You do this by taking out a new loan and using it to pay off the remaining amount on your existing one.
While some people confuse restructuring and refinancing, these are not the same thing. Restructuring describes reviewing and altering an existing loan – for example, switching from a fixed to a floating interest rate.
There are lots of different reasons why you might want to refinance your home loan:
Want to save on interest?
If your current bank is not offering you the best possible interest rate on your mortgage, making the switch to a new financial provider could allow you to negotiate a lower one. This is especially the case if your credit score has increased since you first took out your home loan.
Our team can help you find a lender willing to go that extra mile for you. Lower interest rates could save you hundreds, if not thousands. You can put that money towards paying off your loan all that much faster, use it to pay for new furniture or renovations, or simply a well-earned holiday!
Refinancing can be beneficial if you have multiple sources of debt, such as:
You could use the mortgage to consolidate these debts by paying them off and grouping debts with higher interest rates into a single home loan. By reducing the overall amount you’ll have to pay in interest, this will save you money in the long run, helping boost your credit score. That will open up better options for your financial future.
How to obtain new loan products or features?
You may be able to access enticing financial products by switching to a different lender, such as credit cards with home loan interest rates, or reduced interest by combining your account balances with your mortgage.
Are you unhappy with the level of service your current bank or financial institution has been providing you? Switching to a different financial institution can give you a chance to start fresh with a better alternative.
Want to benefit from early discounts?
Your bank may waive ongoing monthly account or debit card fees when you first sign up with them. Switching to a new bank could allow you to continue to take advantage of new customer discounts, helping you save some money.
Is your mortgage tailored to your needs?
Your loan’s structure can significantly affect how quickly you’re able to pay it off. By switching to a different bank and obtaining a term with more favourable interest rates, you may be able to say goodbye to your debt months, if not years earlier.
If you have an investment property and the interest-only period on your loan is coming to an end, we can shop around on your behalf and negotiate a new one in order to keep your repayments at their current level.
Options with Legendary Mortgages & Insurances
If life has moved on but your home loan hasn’t, it may be time to explore your options. Assess your loan’s structure and fees and if it’s no longer offering the best deal, get in touch with the mortgage brokers at Legendary Mortgages & Insurances. We’ll help you save money by switching to a better option.
Our financial advisers and mortgage brokers can help you find the best possible loans for your circumstances. Just get in touch with our team at [email protected] to learn about what we can do to help you or to book a consultation with us today.