When Would I Refinance My Mortgage?
Heard about mortgage refinancing? In the past, most people who took out a mortgage doggedly continued with it until they had paid it off.
These days, people refinance their mortgage much more frequently. The average duration of a home loan in Australia now is just 4-5 years. Here we look at some of the reasons people in Australia refinance their home loan..
Mortgage refinancing reasons: lower repayments
The most common reason for people to refinance their mortgage is to get a cheaper deal. But be careful you don’t become interest rate-fixated. When you refinance your home loan, you need to consider fees and charges as well as the interest rate. You often have to pay charges for exiting your current home loan, plus charges for taking out the new mortgage. You need to be sure that in refinancing your home loan that you’ll be better off in the long run after taking into account all costs. We use a True-Cost-To-You assessment methodology to determine if a change of lender is appropriate for you. This allows you to make an informed decision.